-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 KbpIC+RqOXrPITRl9fcvvWQl5w+ZBgnrZ/p4lfRv+i2AMkQxf8+D/StPcHLCCioc
 5Ek1cTPZdVi+1RjWPqggvQ==

<SEC-DOCUMENT>0000078150-08-000022.txt : 20080409
<SEC-HEADER>0000078150-08-000022.hdr.sgml : 20080409
<ACCEPTANCE-DATETIME>20080409113739
ACCESSION NUMBER:		0000078150-08-000022
CONFORMED SUBMISSION TYPE:	20-F
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20071231
FILED AS OF DATE:		20080409
DATE AS OF CHANGE:		20080409

FILER:

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

	FILING VALUES:
		FORM TYPE:		20-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-03006
		FILM NUMBER:		08746942

	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>20-F
<SEQUENCE>1
<FILENAME>pldt2007form20f.htm
<DESCRIPTION>PLDT 2007 ANNUAL REPORT
<TEXT>
<html>

<head>
<meta content="text/html; charset=windows-1252">
<meta name=Generator content="Microsoft Word 11 (filtered)">
<title>PLDT</title>

<!--
 /* Font Definitions */
 @font-face
	{font-family:Helvetica;
	panose-1:2 11 6 4 2 2 2 2 2 4;}
@font-face
	{font-family:Courier;
	panose-1:2 7 4 9 2 2 5 2 4 4;}
@font-face
	{font-family:"Tms Rmn";
	panose-1:2 2 6 3 4 5 5 2 3 4;}
@font-face
	{font-family:Helv;
	panose-1:2 11 6 4 2 2 2 3 2 4;}
@font-face
	{font-family:"New York";
	panose-1:2 4 5 3 6 5 6 2 3 4;}
@font-face
	{font-family:System;
	panose-1:0 0 0 0 0 0 0 0 0 0;}
@font-face
	{font-family:Wingdings;
	panose-1:5 0 0 0 0 0 0 0 0 0;}
@font-face
	{font-family:"MS Mincho";
	panose-1:2 2 6 9 4 2 5 8 3 4;}
@font-face
	{font-family:Batang;
	panose-1:2 3 6 0 0 1 1 1 1 1;}
@font-face
	{font-family:SimSun;
	panose-1:2 1 6 0 3 1 1 1 1 1;}
@font-face
	{font-family:PMingLiU;
	panose-1:2 1 6 1 0 1 1 1 1 1;}
@font-face
	{font-family:"MS Gothic";
	panose-1:2 11 6 9 7 2 5 8 2 4;}
@font-face
	{font-family:Dotum;
	panose-1:2 11 6 0 0 1 1 1 1 1;}
@font-face
	{font-family:SimHei;
	panose-1:2 1 6 0 3 1 1 1 1 1;}
@font-face
	{font-family:MingLiU;
	panose-1:2 1 6 9 0 1 1 1 1 1;}
@font-face
	{font-family:Mincho;
	panose-1:2 2 6 9 4 3 5 8 3 5;}
@font-face
	{font-family:Gulim;
	panose-1:2 11 6 0 0 1 1 1 1 1;}
@font-face
	{font-family:Century;
	panose-1:2 4 6 4 5 5 5 2 3 4;}
@font-face
	{font-family:"Angsana New";
	panose-1:2 2 6 3 5 4 5 2 3 4;}
@font-face
	{font-family:"Cordia New";
	panose-1:2 11 3 4 2 2 2 2 2 4;}
@font-face
	{font-family:Mangal;
	panose-1:0 0 4 0 0 0 0 0 0 0;}
@font-face
	{font-family:Latha;
	panose-1:2 0 4 0 0 0 0 0 0 0;}
@font-face
	{font-family:Sylfaen;
	panose-1:1 10 5 2 5 3 6 3 3 3;}
@font-face
	{font-family:Vrinda;
	panose-1:0 0 4 0 0 0 0 0 0 0;}
@font-face
	{font-family:Raavi;
	panose-1:2 0 5 0 0 0 0 0 0 0;}
@font-face
	{font-family:Shruti;
	panose-1:2 0 5 0 0 0 0 0 0 0;}
@font-face
	{font-family:Sendnya;
	panose-1:0 0 4 0 0 0 0 0 0 0;}
@font-face
	{font-family:Gautami;
	panose-1:2 0 5 0 0 0 0 0 0 0;}
@font-face
	{font-family:Tunga;
	panose-1:0 0 4 0 0 0 0 0 0 0;}
@font-face
	{font-family:"Estrangelo Edessa";
	panose-1:0 0 0 0 0 0 0 0 0 0;}
@font-face
	{font-family:"Arial Unicode MS";
	panose-1:2 11 6 4 2 2 2 2 2 4;}
@font-face
	{font-family:Tahoma;
	panose-1:2 11 6 4 3 5 4 4 2 4;}
@font-face
	{font-family:"Times New Roman Bold";
	panose-1:0 0 0 0 0 0 0 0 0 0;}
@font-face
	{font-family:"MS Song";}
@font-face
	{font-family:"Arial Narrow";
	panose-1:2 11 5 6 2 2 2 3 2 4;}
@font-face
	{font-family:TimesNewRoman;
	panose-1:0 0 0 0 0 0 0 0 0 0;}
@font-face
	{font-family:serif;
	panose-1:0 0 0 0 0 0 0 0 0 0;}
@font-face
	{font-family:TimesNewRomanPSMT;
	panose-1:0 0 0 0 0 0 0 0 0 0;}
@font-face
	{font-family:Times;
	panose-1:2 2 6 3 5 4 5 2 3 4;}
@font-face
	{font-family:"EY Gothic Comp Book";}
@font-face
	{font-family:"\@SimSun";
	panose-1:0 0 0 0 0 0 0 0 0 0;}
@font-face
	{font-family:"\@PMingLiU";
	panose-1:0 0 0 0 0 0 0 0 0 0;}
@font-face
	{font-family:"\@MS Mincho";
	panose-1:0 0 0 0 0 0 0 0 0 0;}
@font-face
	{font-family:"\@Arial Unicode MS";
	panose-1:2 11 6 4 2 2 2 2 2 4;}
 /* Style Definitions */
 p.MsoNormal, li.MsoNormal, div.MsoNormal
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
h1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman Bold";
	text-transform:uppercase;
	font-weight:bold;}
h2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:justify;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;
	text-decoration:underline;}
h3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:justify;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
h4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.6in;
	text-align:justify;
	text-indent:-.1in;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:normal;
	font-style:italic;}
h5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:justify;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:normal;
	font-style:italic;}
h6
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.MsoHeading7, li.MsoHeading7, div.MsoHeading7
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.9in;
	text-align:center;
	text-indent:-.2in;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.MsoHeading8, li.MsoHeading8, div.MsoHeading8
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:1.0in;
	text-align:justify;
	text-indent:-.3in;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.MsoHeading9, li.MsoHeading9, div.MsoHeading9
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:1.1in;
	text-align:justify;
	text-indent:-.1in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoIndex1, li.MsoIndex1, div.MsoIndex1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:12.0pt;
	margin-bottom:.0001pt;
	text-indent:-12.0pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.MsoToc1, li.MsoToc1, div.MsoToc1
	{margin:0in;
	margin-bottom:.0001pt;
	line-height:9.0pt;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.MsoToc2, li.MsoToc2, div.MsoToc2
	{margin-top:0in;
	margin-right:.05in;
	margin-bottom:0in;
	margin-left:0in;
	margin-bottom:.0001pt;
	text-indent:-5.4pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.MsoToc3, li.MsoToc3, div.MsoToc3
	{margin-top:0in;
	margin-right:1.9pt;
	margin-bottom:0in;
	margin-left:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:9.0pt;
	font-family:"Times New Roman";}
p.MsoToc4, li.MsoToc4, div.MsoToc4
	{margin-top:0in;
	margin-right:.5in;
	margin-bottom:0in;
	margin-left:1.5in;
	margin-bottom:.0001pt;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoToc5, li.MsoToc5, div.MsoToc5
	{margin-top:0in;
	margin-right:.5in;
	margin-bottom:0in;
	margin-left:1.75in;
	margin-bottom:.0001pt;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoToc6, li.MsoToc6, div.MsoToc6
	{margin-top:0in;
	margin-right:.5in;
	margin-bottom:0in;
	margin-left:1.0in;
	margin-bottom:.0001pt;
	text-indent:-.5in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoToc7, li.MsoToc7, div.MsoToc7
	{margin-top:0in;
	margin-right:.5in;
	margin-bottom:0in;
	margin-left:1.0in;
	margin-bottom:.0001pt;
	text-indent:-.5in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoToc8, li.MsoToc8, div.MsoToc8
	{margin-top:0in;
	margin-right:.5in;
	margin-bottom:0in;
	margin-left:1.0in;
	margin-bottom:.0001pt;
	text-indent:-.5in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoToc9, li.MsoToc9, div.MsoToc9
	{margin-top:0in;
	margin-right:.5in;
	margin-bottom:0in;
	margin-left:1.0in;
	margin-bottom:.0001pt;
	text-indent:-.5in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoNormalIndent, li.MsoNormalIndent, div.MsoNormalIndent
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:.5in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoFootnoteText, li.MsoFootnoteText, div.MsoFootnoteText
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.25in;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:9.0pt;
	font-family:"Times New Roman";}
p.MsoCommentText, li.MsoCommentText, div.MsoCommentText
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.MsoHeader, li.MsoHeader, div.MsoHeader
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoFooter, li.MsoFooter, div.MsoFooter
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoIndexHeading, li.MsoIndexHeading, div.MsoIndexHeading
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.MsoCaption, li.MsoCaption, div.MsoCaption
	{margin:0in;
	margin-bottom:.0001pt;
	text-indent:.5in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
span.MsoFootnoteReference
	{vertical-align:super;}
p.MsoEndnoteText, li.MsoEndnoteText, div.MsoEndnoteText
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.MsoToa, li.MsoToa, div.MsoToa
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.2in;
	text-indent:-.2in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoMacroText, li.MsoMacroText, div.MsoMacroText
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Courier New";}
p.MsoToaHeading, li.MsoToaHeading, div.MsoToaHeading
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.MsoListBullet, li.MsoListBullet, div.MsoListBullet
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.5in;
	text-indent:-.5in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:12.0pt;
	font-family:"Times New Roman";}
p.MsoListNumber, li.MsoListNumber, div.MsoListNumber
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:.25in;
	margin-bottom:.0001pt;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoListBullet2, li.MsoListBullet2, div.MsoListBullet2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:.5in;
	margin-bottom:.0001pt;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoListBullet3, li.MsoListBullet3, div.MsoListBullet3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:.75in;
	margin-bottom:.0001pt;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoListBullet4, li.MsoListBullet4, div.MsoListBullet4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:1.0in;
	margin-bottom:.0001pt;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoListBullet5, li.MsoListBullet5, div.MsoListBullet5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:1.25in;
	margin-bottom:.0001pt;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoListNumber2, li.MsoListNumber2, div.MsoListNumber2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:1.0in;
	text-indent:-.5in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:12.0pt;
	font-family:"Times New Roman";}
p.MsoListNumber3, li.MsoListNumber3, div.MsoListNumber3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:1.5in;
	text-indent:-.5in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:12.0pt;
	font-family:"Times New Roman";}
p.MsoListNumber4, li.MsoListNumber4, div.MsoListNumber4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:2.0in;
	text-indent:-.5in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:12.0pt;
	font-family:"Times New Roman";}
p.MsoListNumber5, li.MsoListNumber5, div.MsoListNumber5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:2.5in;
	text-indent:-.5in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:12.0pt;
	font-family:"Times New Roman";}
p.MsoTitle, li.MsoTitle, div.MsoTitle
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.MsoSignature, li.MsoSignature, div.MsoSignature
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:3.0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoBodyText, li.MsoBodyText, div.MsoBodyText
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:center;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.MsoBodyTextIndent, li.MsoBodyTextIndent, div.MsoBodyTextIndent
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:.25in;
	margin-bottom:.0001pt;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:9.0pt;
	font-family:"Times New Roman";}
p.MsoSubtitle, li.MsoSubtitle, div.MsoSubtitle
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoDate, li.MsoDate, div.MsoDate
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoBodyTextFirstIndent, li.MsoBodyTextFirstIndent, div.MsoBodyTextFirstIndent
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-indent:.5in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.MsoBodyTextFirstIndent2, li.MsoBodyTextFirstIndent2, div.MsoBodyTextFirstIndent2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:.25in;
	text-indent:10.5pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoBodyText2, li.MsoBodyText2, div.MsoBodyText2
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:8.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
p.MsoBodyText3, li.MsoBodyText3, div.MsoBodyText3
	{margin:0in;
	margin-bottom:.0001pt;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
p.MsoBodyTextIndent2, li.MsoBodyTextIndent2, div.MsoBodyTextIndent2
	{margin:0in;
	margin-bottom:.0001pt;
	text-indent:.6in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoBodyTextIndent3, li.MsoBodyTextIndent3, div.MsoBodyTextIndent3
	{margin:0in;
	margin-bottom:.0001pt;
	text-indent:.3in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.MsoBlockText, li.MsoBlockText, div.MsoBlockText
	{margin-top:0in;
	margin-right:6.5pt;
	margin-bottom:0in;
	margin-left:22.5pt;
	margin-bottom:.0001pt;
	text-indent:-22.5pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:9.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
a:link, span.MsoHyperlink
	{color:blue;
	text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
	{color:purple;
	text-decoration:underline;}
p.MsoDocumentMap, li.MsoDocumentMap, div.MsoDocumentMap
	{margin:0in;
	margin-bottom:.0001pt;
	background:navy;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:Tahoma;}
p.MsoAutoSig, li.MsoAutoSig, div.MsoAutoSig
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:12.0pt;
	font-family:"Times New Roman";}
p
	{margin-top:5.0pt;
	margin-right:0in;
	margin-bottom:5.0pt;
	margin-left:0in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:12.0pt;
	font-family:"Arial Unicode MS";}
p.MsoCommentSubject, li.MsoCommentSubject, div.MsoCommentSubject
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.MsoAcetate, li.MsoAcetate, div.MsoAcetate
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:8.0pt;
	font-family:Tahoma;}
span.DeltaViewChangeNumber
	{color:black;
	letter-spacing:0pt;
	vertical-align:super;}
span.DeltaViewDelimiter
	{letter-spacing:0pt;}
p.alpha2, li.alpha2, div.alpha2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:62.35pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Body, li.Body, div.Body
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:21.25pt;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Bullet1, li.Bullet1, div.Bullet1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:0in;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Head, li.Head, div.Head
	{margin-top:14.75pt;
	margin-right:0in;
	margin-bottom:8.75pt;
	margin-left:21.25pt;
	text-align:justify;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.TableText, li.TableText, div.TableText
	{margin-top:1.0pt;
	margin-right:0in;
	margin-bottom:1.0pt;
	margin-left:0in;
	text-align:justify;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Alpha3-a, li.Alpha3-a, div.Alpha3-a
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:92.15pt;
	text-align:justify;
	text-indent:-42.55pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Alpha4-a, li.Alpha4-a, div.Alpha4-a
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:113.4pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Level4, li.Level4, div.Level4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:113.4pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Level5, li.Level5, div.Level5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:134.65pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Head1, li.Head1, div.Head1
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.Body1, li.Body1, div.Body1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:21.25pt;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Body2, li.Body2, div.Body2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Head3, li.Head3, div.Head3
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman Bold";
	font-weight:bold;}
p.Body3, li.Body3, div.Body3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:92.15pt;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Level1, li.Level1, div.Level1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:21.25pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Level2, li.Level2, div.Level2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Level3, li.Level3, div.Level3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:92.15pt;
	text-align:justify;
	text-indent:-42.55pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Level6, li.Level6, div.Level6
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:4.0pt;
	margin-left:155.95pt;
	text-align:justify;
	text-indent:-21.3pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Roman2-i, li.Roman2-i, div.Roman2-i
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Roman3-i, li.Roman3-i, div.Roman3-i
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:92.15pt;
	text-align:justify;
	text-indent:-42.55pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Roman4-i, li.Roman4-i, div.Roman4-i
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:113.4pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Alpha3-A0, li.Alpha3-A0, div.Alpha3-A0
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:92.15pt;
	text-align:justify;
	text-indent:-42.55pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Alpha5-a, li.Alpha5-a, div.Alpha5-a
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:134.65pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Alpha2-a, li.Alpha2-a, div.Alpha2-a
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Alpha2-A0, li.Alpha2-A0, div.Alpha2-A0
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Alpha2-abolditalic, li.Alpha2-abolditalic, div.Alpha2-abolditalic
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.5pt;
	font-family:"Times New Roman";
	font-weight:bold;
	font-style:italic;}
p.Alpha2-aitalic, li.Alpha2-aitalic, div.Alpha2-aitalic
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
p.Alpha2-Abolditalic0, li.Alpha2-Abolditalic0, div.Alpha2-Abolditalic0
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.5pt;
	font-family:"Times New Roman";
	font-weight:bold;
	font-style:italic;}
p.Alpha2-Abold, li.Alpha2-Abold, div.Alpha2-Abold
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.5pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.Alpha2-Aitalic0, li.Alpha2-Aitalic0, div.Alpha2-Aitalic0
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
p.Arabic2-1, li.Arabic2-1, div.Arabic2-1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Arabic3-1, li.Arabic3-1, div.Arabic3-1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:92.15pt;
	text-align:justify;
	text-indent:-42.55pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Arabic2-10, li.Arabic2-10, div.Arabic2-10
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Arabic3-10, li.Arabic3-10, div.Arabic3-10
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:92.15pt;
	text-align:justify;
	text-indent:-42.55pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Roman2-I0, li.Roman2-I0, div.Roman2-I0
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Roman2-I1, li.Roman2-I1, div.Roman2-I1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Alpha2-abold0, li.Alpha2-abold0, div.Alpha2-abold0
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:49.6pt;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.5pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.Alpha1G-Aitalic, li.Alpha1G-Aitalic, div.Alpha1G-Aitalic
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:42.55pt;
	text-align:justify;
	text-indent:-42.55pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
p.Head2, li.Head2, div.Head2
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman Bold";
	font-weight:bold;}
p.Arabic4-1, li.Arabic4-1, div.Arabic4-1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:113.4pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Arabic4-10, li.Arabic4-10, div.Arabic4-10
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:113.4pt;
	text-align:justify;
	text-indent:-21.25pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.alpha3, li.alpha3, div.alpha3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:96.4pt;
	text-align:justify;
	text-indent:-34.05pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Bullet2, li.Bullet2, div.Bullet2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:62.35pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Bullet3, li.Bullet3, div.Bullet3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:102.05pt;
	text-align:justify;
	text-indent:-39.7pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.CellBody, li.CellBody, div.CellBody
	{margin-top:2.0pt;
	margin-right:0in;
	margin-bottom:2.0pt;
	margin-left:0in;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.Title10C, li.Title10C, div.Title10C
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:center;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.CellHead, li.CellHead, div.CellHead
	{margin-top:2.0pt;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:0in;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
span.DeltaViewInsertion
	{font-weight:bold;
	text-decoration:underline;}
p.DoubleSpace, li.DoubleSpace, div.DoubleSpace
	{margin:0in;
	margin-bottom:.0001pt;
	line-height:200%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:12.0pt;
	font-family:"Times New Roman";}
span.DeltaViewDeletion
	{color:red;
	text-decoration:line-through;}
p.WGLAddressHeading, li.WGLAddressHeading, div.WGLAddressHeading
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.ListBullet2, li.ListBullet2, div.ListBullet2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.25in;
	text-align:justify;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.table, li.table, div.table
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:4.0pt;
	margin-left:0in;
	line-height:14.0pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:8.0pt;
	font-family:Arial;}
p.Style1, li.Style1, div.Style1
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	text-transform:uppercase;}
p.DoubleScore, li.DoubleScore, div.DoubleScore
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	border:none;
	padding:0in;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.BodytextBold, li.BodytextBold, div.BodytextBold
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.TableHeading1, li.TableHeading1, div.TableHeading1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:0in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:9.0pt;
	font-family:Arial;
	font-weight:bold;}
p.Address, li.Address, div.Address
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:1.0in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.BodyTextFirstInd2, li.BodyTextFirstInd2, div.BodyTextFirstInd2
	{margin:0in;
	margin-bottom:.0001pt;
	text-indent:1.0in;
	line-height:200%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.BodyTextHang, li.BodyTextHang, div.BodyTextHang
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.5in;
	text-indent:-.5in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.BodyTextHang2, li.BodyTextHang2, div.BodyTextHang2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:.5in;
	margin-bottom:.0001pt;
	text-indent:-.5in;
	line-height:200%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.Bullet, li.Bullet, div.Bullet
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.25in;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.CenterBold, li.CenterBold, div.CenterBold
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman Bold";
	font-weight:bold;}
p.CenterBoldScore, li.CenterBoldScore, div.CenterBoldScore
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman Bold";
	font-weight:bold;
	text-decoration:underline;}
p.CenterScore, li.CenterScore, div.CenterScore
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	text-decoration:underline;}
p.Heading, li.Heading, div.Heading
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.LeftBold, li.LeftBold, div.LeftBold
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman Bold";}
p.LeftItalic, li.LeftItalic, div.LeftItalic
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.25in;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
p.LeftBoldItalic, li.LeftBoldItalic, div.LeftBoldItalic
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
p.NotesSeparator, li.NotesSeparator, div.NotesSeparator
	{margin-top:0in;
	margin-right:5.5in;
	margin-bottom:0in;
	margin-left:0in;
	margin-bottom:.0001pt;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	border:none;
	padding:0in;
	font-size:6.0pt;
	font-family:"Times New Roman";}
p.Quote, li.Quote, div.Quote
	{margin-top:0in;
	margin-right:1.0in;
	margin-bottom:12.0pt;
	margin-left:1.0in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.Separator, li.Separator, div.Separator
	{margin-top:0in;
	margin-right:207.35pt;
	margin-bottom:3.0pt;
	margin-left:207.35pt;
	punctuation-wrap:simple;
	text-autospace:none;
	border:none;
	padding:0in;
	font-size:1.5pt;
	font-family:"Times New Roman";}
p.SingleScore, li.SingleScore, div.SingleScore
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	border:none;
	padding:0in;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.TableHead, li.TableHead, div.TableHead
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:center;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:8.0pt;
	font-family:"Times New Roman Bold";
	font-weight:bold;}
p.TableNotes, li.TableNotes, div.TableNotes
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:.25in;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:8.0pt;
	font-family:"Times New Roman";}
p.PageNum, li.PageNum, div.PageNum
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:center;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.LeftScore, li.LeftScore, div.LeftScore
	{margin:0in;
	margin-bottom:.0001pt;
	line-height:200%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	text-decoration:underline;}
p.text2, li.text2, div.text2
	{margin:0in;
	margin-bottom:.0001pt;
	text-indent:.5in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.Head10, li.Head10, div.Head10
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:center;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman Bold";
	font-weight:bold;}
p.Head5, li.Head5, div.Head5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-align:justify;
	line-height:13.0pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
p.Bodytext, li.Bodytext, div.Bodytext
	{margin:0in;
	margin-bottom:.0001pt;
	text-indent:.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.alpha1, li.alpha1, div.alpha1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:28.35pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Lista, li.Lista, div.Lista
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.25in;
	text-indent:-.25in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:12.0pt;
	font-family:"Times New Roman";}
p.Head4, li.Head4, div.Head4
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.Note-Head, li.Note-Head, div.Note-Head
	{margin-top:24.0pt;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.25in;
	text-indent:-.25in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	border:none;
	padding:0in;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.Note-BodyNo, li.Note-BodyNo, div.Note-BodyNo
	{margin-top:6.0pt;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:0in;
	text-align:justify;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.CaptionText, li.CaptionText, div.CaptionText
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:12.0pt;
	font-family:"Times New Roman";}
p.n, li.n, div.n
	{margin:0in;
	margin-bottom:.0001pt;
	text-indent:.5in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.SchedHead1, li.SchedHead1, div.SchedHead1
	{margin-top:7.0pt;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:28.35pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:Arial;
	font-weight:bold;}
p.23BodyText, li.23BodyText, div.23BodyText
	{margin-top:5.0pt;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	line-height:110%;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:10.0pt;
	font-family:Arial;
	color:black;}
p.alpha4, li.alpha4, div.alpha4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:136.1pt;
	text-align:justify;
	text-indent:-34.05pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.alpha5, li.alpha5, div.alpha5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:164.45pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.alpha6, li.alpha6, div.alpha6
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:198.45pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Bullet4, li.Bullet4, div.Bullet4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:136.05pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Bullet5, li.Bullet5, div.Bullet5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:164.45pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Bullet6, li.Bullet6, div.Bullet6
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:198.45pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Parties, li.Parties, div.Parties
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:28.35pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Recitals, li.Recitals, div.Recitals
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:28.35pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.roman1, li.roman1, div.roman1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:28.35pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.roman2, li.roman2, div.roman2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:62.35pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.roman3, li.roman3, div.roman3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:102.05pt;
	text-align:justify;
	text-indent:-39.7pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.roman4, li.roman4, div.roman4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:136.05pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.roman5, li.roman5, div.roman5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:164.45pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.roman6, li.roman6, div.roman6
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:198.45pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Schedule1, li.Schedule1, div.Schedule1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:28.35pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Schedule2, li.Schedule2, div.Schedule2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:62.35pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Schedule3, li.Schedule3, div.Schedule3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:102.05pt;
	text-align:justify;
	text-indent:-39.7pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Schedule4, li.Schedule4, div.Schedule4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:136.1pt;
	text-align:justify;
	text-indent:-34.05pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Body4, li.Body4, div.Body4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:136.1pt;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Schedule5, li.Schedule5, div.Schedule5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:164.45pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Body5, li.Body5, div.Body5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:164.45pt;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Schedule6, li.Schedule6, div.Schedule6
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:198.45pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Body6, li.Body6, div.Body6
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:198.45pt;
	text-align:justify;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.TCLevel1, li.TCLevel1, div.TCLevel1
	{margin-top:7.0pt;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:28.35pt;
	margin-bottom:.0001pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;
	font-weight:bold;}
p.TCLevel2, li.TCLevel2, div.TCLevel2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:62.35pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.TCLevel3, li.TCLevel3, div.TCLevel3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:102.05pt;
	text-align:justify;
	text-indent:-39.7pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.TCLevel4, li.TCLevel4, div.TCLevel4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:136.05pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.BulletF, li.BulletF, div.BulletF
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:70.9pt;
	margin-bottom:.0001pt;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Table1, li.Table1, div.Table1
	{margin-top:3.0pt;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:28.35pt;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Table2, li.Table2, div.Table2
	{margin-top:3.0pt;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:28.35pt;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Table3, li.Table3, div.Table3
	{margin-top:3.0pt;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:28.35pt;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Table4, li.Table4, div.Table4
	{margin-top:3.0pt;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:28.35pt;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Table5, li.Table5, div.Table5
	{margin-top:3.0pt;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:28.35pt;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Table6, li.Table6, div.Table6
	{margin-top:3.0pt;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:28.35pt;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Tablealpha, li.Tablealpha, div.Tablealpha
	{margin-top:3.0pt;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:28.35pt;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Tableroman, li.Tableroman, div.Tableroman
	{margin-top:3.0pt;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:28.35pt;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.Tablebullet, li.Tablebullet, div.Tablebullet
	{margin-top:3.0pt;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:28.35pt;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.SchedPara1, li.SchedPara1, div.SchedPara1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:28.35pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.SchedPara2, li.SchedPara2, div.SchedPara2
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:28.35pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.SchedPara3, li.SchedPara3, div.SchedPara3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:62.35pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.SchedPara4, li.SchedPara4, div.SchedPara4
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:96.4pt;
	text-align:justify;
	text-indent:-34.05pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.SchedPara5, li.SchedPara5, div.SchedPara5
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:124.75pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.SchedPara6, li.SchedPara6, div.SchedPara6
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:7.0pt;
	margin-left:158.75pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.SchedHead2, li.SchedHead2, div.SchedHead2
	{margin-top:7.0pt;
	margin-right:0in;
	margin-bottom:3.0pt;
	margin-left:28.35pt;
	text-align:justify;
	text-indent:-28.35pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.5pt;
	font-family:Arial;
	font-weight:bold;}
p.SchedHead3, li.SchedHead3, div.SchedHead3
	{margin-top:7.0pt;
	margin-right:0in;
	margin-bottom:2.0pt;
	margin-left:62.35pt;
	text-align:justify;
	text-indent:-34.0pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;
	font-weight:bold;}
span.Checkbox
	{font-family:"Times New Roman";
	letter-spacing:0pt;}
p.text, li.text, div.text
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:10.0pt;
	margin-left:0in;
	text-align:justify;
	line-height:14.0pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.MDAListBullet, li.MDAListBullet, div.MDAListBullet
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:6.0pt;
	margin-left:63.35pt;
	text-indent:-27.35pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.OCBodytext, li.OCBodytext, div.OCBodytext
	{margin:0in;
	margin-bottom:.0001pt;
	text-indent:.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.BulletedList, li.BulletedList, div.BulletedList
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:63.35pt;
	margin-bottom:.0001pt;
	text-indent:-27.35pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";}
p.SignatureBlock, li.SignatureBlock, div.SignatureBlock
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:3.0in;
	margin-bottom:.0001pt;
	text-indent:.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:12.0pt;
	font-family:"Times New Roman";}
p.UnderlineHeading, li.UnderlineHeading, div.UnderlineHeading
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-indent:.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:12.0pt;
	font-family:"Times New Roman";
	text-decoration:underline;}
p.Default1, li.Default1, div.Default1
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.5in;
	text-indent:-.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:12.0pt;
	font-family:"Times New Roman";}
p.TitleL, li.TitleL, div.TitleL
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	text-indent:.25in;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:12.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.ItalicIndent, li.ItalicIndent, div.ItalicIndent
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:.25in;
	page-break-after:avoid;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-style:italic;}
span.DeltaViewMoveDestination
	{color:lime;
	text-decoration:underline;}
span.DeltaViewMoveSource
	{color:lime;
	text-decoration:line-through;}
p.Hearing3, li.Hearing3, div.Hearing3
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:11.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.38bTablestylenumericChar, li.38bTablestylenumericChar, div.38bTablestylenumericChar
	{margin-top:3.0pt;
	margin-right:.05in;
	margin-bottom:0in;
	margin-left:0in;
	margin-bottom:.0001pt;
	line-height:120%;
	page-break-after:avoid;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:9.0pt;
	font-family:Arial;
	color:black;}
p.24Chapterbullet1, li.24Chapterbullet1, div.24Chapterbullet1
	{margin-top:5.0pt;
	margin-right:0in;
	margin-bottom:1.0pt;
	margin-left:.25in;
	text-align:justify;
	text-indent:-.25in;
	line-height:110%;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:10.0pt;
	font-family:Arial;
	color:black;}
p.Style2, li.Style2, div.Style2
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.SecondHeading6, li.SecondHeading6, div.SecondHeading6
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:12.0pt;
	font-family:"Times New Roman";}
p.toc2, li.toc2, div.toc2
	{margin:0in;
	margin-bottom:.0001pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:9.0pt;
	font-family:"Times New Roman";}
p.000normal, li.000normal, div.000normal
	{margin-top:9.0pt;
	margin-right:0in;
	margin-bottom:5.0pt;
	margin-left:0in;
	text-align:justify;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:Arial;}
p.dpwwoobullet1l, li.dpwwoobullet1l, div.dpwwoobullet1l
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:10.0pt;
	margin-left:.75in;
	text-indent:-.25in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:10.0pt;
	font-family:Arial;}
p.dpwWoobdy, li.dpwWoobdy, div.dpwWoobdy
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:10.0pt;
	margin-left:0in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:10.0pt;
	font-family:Arial;}
p.dpwWoobullet1l0, li.dpwWoobullet1l0, div.dpwWoobullet1l0
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:10.0pt;
	margin-left:.5in;
	text-indent:-.25in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:10.0pt;
	font-family:Arial;}
p.dpwwoobdy0, li.dpwwoobdy0, div.dpwwoobdy0
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:10.0pt;
	margin-left:0in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:10.0pt;
	font-family:Arial;}
p.01parapoint, li.01parapoint, div.01parapoint
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:0in;
	margin-left:.7in;
	margin-bottom:.0001pt;
	text-indent:-.2in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:10.0pt;
	font-family:"Times New Roman";}
p.SecondHeading3, li.SecondHeading3, div.SecondHeading3
	{margin-top:0in;
	margin-right:0in;
	margin-bottom:12.0pt;
	margin-left:0in;
	punctuation-wrap:hanging;
	text-autospace:ideograph-numeric ideograph-other;
	font-size:12.0pt;
	font-family:"Times New Roman";}
span.cs-902-hidden1
	{color:green;}
p.BodyCopy, li.BodyCopy, div.BodyCopy
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:justify;
	line-height:14.0pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:12.0pt;
	font-family:Times;}
p.CenteredHeading, li.CenteredHeading, div.CenteredHeading
	{margin:0in;
	margin-bottom:.0001pt;
	text-align:center;
	line-height:12.0pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:12.0pt;
	font-family:"Times New Roman";
	font-weight:bold;}
p.021Bulleta, li.021Bulleta, div.021Bulleta
	{margin-top:5.4pt;
	margin-right:0in;
	margin-bottom:5.4pt;
	margin-left:1.0in;
	text-align:justify;
	text-indent:-.5in;
	punctuation-wrap:hanging;
	text-autospace:none;
	font-size:12.0pt;
	font-family:Arial;}
p.TableTEXT0, li.TableTEXT0, div.TableTEXT0
	{margin-top:1.0pt;
	margin-right:0in;
	margin-bottom:1.0pt;
	margin-left:0in;
	line-height:11.0pt;
	punctuation-wrap:simple;
	text-autospace:none;
	font-size:10.0pt;
	font-family:"EY Gothic Comp Book";
	color:black;}
span.TableTEXTChar
	{font-family:"EY Gothic Comp Book";
	color:black;}
ins
	{text-decoration:none;}
span.msoIns
	{text-decoration:underline;}
span.msoDel
	{text-decoration:line-through;
	color:red;}
 /* Page Definitions */
 @page Section1
	{size:8.5in 11.0in;
	margin:.6in 1.0in .9in 1.0in;}
div.Section1
	{page:Section1;}
@page Section2
	{size:8.5in 11.0in;
	margin:.6in 1.0in .9in 1.0in;}
div.Section2
	{page:Section2;}
@page Section3
	{size:8.5in 11.0in;
	margin:.8in .8in .8in 1.0in;}
div.Section3
	{page:Section3;}
@page Section4
	{size:8.5in 11.0in;
	margin:.6in 67.5pt .9in 1.0in;}
div.Section4
	{page:Section4;}
 /* List Definitions */
 ol
	{margin-bottom:0in;}
ul
	{margin-bottom:0in;}
- -->

</head>

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

<div>

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

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

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

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

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

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

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

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

<p style='margin-left:.5in;text-indent:-.5in' style="margin-top:0;margin-bottom:0"><b>[X]          ANNUAL REPORT PURSUANT TO SECTION 13 OR
15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 &#150; For the fiscal year ended
December 31, 2007</b></p>

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

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

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

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

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

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

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

<p style='margin-left:.5in;text-indent:-.5in' style="margin-top:0;margin-bottom:0"><b>[  ]           SHELL COMPANY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 &#150; Date of event
requiring this shell company report __________</b></p>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Atty. Ma. Lourdes C. Rausa-Chan, telephone: +(632)
816-8556; lrchan@pldt.com.ph; <br>
Ramon Cojuangco Bldg., Makati Avenue, Makati City, Philippines</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(Name, telephone, e-mail and/or facsimile number and
address of Company contact person)</p>

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

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

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

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

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

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

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

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

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

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

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

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

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

<div align=center>

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

</div>

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

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

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

<div align=center>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">As at December 31, 2007:</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">188,740,519 shares of Common
 Capital Stock, Par Value Five Philippine Pesos Per Share</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">441,650,297 shares of Serial
 Preferred Stock, Par Value Ten Philippine Pesos Per Share</p>
 </td>
 </tr>
</table></center></div>

</div>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in
Rule 405 of the <br>
Securities Act:       Yes [&#8730;]      No [    ]</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">If
this report is an annual or transition report, indicate by check mark if the
registrant is not required to file reports pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934:    Yes [   ]     No [&#8730;]</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Indicate
by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days:  Yes [<a name="OLE_LINK3"></a><a
name="OLE_LINK2">&#8730;</a>]   No [   ]</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filed.  See definition of &#147;accelerated
filer and large accelerated filer&#148; in Rule 12b-2 of the Exchange Act.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Large
Accelerated Filer [&#8730;]            Accelerated Filer [  ]
Non-Accelerated Filer [   ]</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Indicate
by check mark which basis of accounting the registrant has used to prepare the
financial statements included in this filing. </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">U.S. GAAP [  ]   </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">International
Financial Reporting Standards as issued by the International Accounting
Standards Board [&#8730;]</p>

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">If
&#147;Other&#148; has been checked in response to the previous question, indicate by
check mark which financial statement item the registrant has elected to follow.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Item
17 [  ]    Item 18 [  ]</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">If
this is an annual report, indicate by check mark whether the registrant is a
shell company (as defined in Rule 12b-2 of the Exchange Act):   Yes [   ]
No [&#8730;]</p>

</div>

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

<div>

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

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

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

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

 <tr style='height:.2in'>
 <td  colspan=6 valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:.2in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:.2in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>

 <tr style='height:13.5pt'>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
 <p style="margin-top:0;margin-bottom:0">CERTAIN CONVENTIONS AND TERMS
 USED IN THIS REPORT</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:13.5pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 </tr>
 <tr style='height:4.5pt'>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:4.5pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:4.5pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:4.5pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:4.5pt'>
 <p align=center style='text-align:center;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">FORWARD-LOOKING STATEMENTS</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">PRESENTATION OF FINANCIAL
 INFORMATION</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">PART I</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr style='height:12.15pt'>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 1.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Identity
 of Directors, Senior Management and Advisors</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr style='height:11.25pt'>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:11.25pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:11.25pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 2.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:11.25pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Offer
 Statistics and Expected Timetable</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:11.25pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.35pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.35pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 3.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.35pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Key
 Information</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.35pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:12.6pt' style="margin-top:0;margin-bottom:0">Selected
 Financial Data</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:12.6pt' style="margin-top:0;margin-bottom:0">Capital
 Stock</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:12.6pt' style="margin-top:0;margin-bottom:0">Dividends
 Declared</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:12.6pt' style="margin-top:0;margin-bottom:0">Dividends
 Paid</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:12.6pt' style="margin-top:0;margin-bottom:0">Exchange
 Rates</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:12.6pt' style="margin-top:0;margin-bottom:0">Risk
 Factors</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 4.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Information
 on the Company</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">20</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Overview</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">20</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Historical Background and
 Development</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">20</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Organization</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">21</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Strengths</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">23</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Strategy</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Business</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Infrastructure</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">34</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Interconnection Agreements</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">37</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Licenses and Regulation</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">37</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Competition</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">39</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Environmental Matters</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Intellectual Property Rights</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Properties</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 4A.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Unresolved
 Staff Comments</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">43</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 5.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Operating
 and Financial Review and Prospects</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">43</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Overview</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">43</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Critical Accounting Policies</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">New Accounting Pronouncements
 Effective Subsequent to 2007</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Results of Operations</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Plans and Prospects</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">65</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Liquidity and Capital
 Resources</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">66</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Impact of Inflation and
 Changing Prices</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">71</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 6.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Directors,
 Senior Management and Employees</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">72</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Directors, Key Officers and
 Advisors</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">72</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Terms of Office</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">78</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Family Relationships</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">78</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Compensation of Key Management
 Personnel of the PLDT Group</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">78</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Long-Term Incentive Plan</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">78</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Executive Stock Option Plan</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">79</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Share Ownership</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">80</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Board of Directors &#150; Independent
 Directors </p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">80</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Audit, Governance and
 Nomination, Executive Compensation and Technology Strategy Committees</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">81</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Directors&#146; and Officers&#146;
 Involvement in Certain Legal Proceedings</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">83</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Employees and Labor Relations</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">85</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Pension and Retirement
 Benefits</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">85</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 7.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Major
 Shareholders and Related Party Transactions</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">87</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Related Party Transactions</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">89</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 8.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Financial
 Information</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">89</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Consolidated Statements and
 Other Financial Information</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">89</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Legal Proceedings</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">89</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Dividend Distribution Policy</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">91</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 9.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">The
 Offer and Listing</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">91</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Common Capital Stock and
 Amercian Depositary Shares (&#147;ADSs&#148;)</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">91</p>
 </td>
 </tr>
 <tr style='height:12.6pt'>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:12.6pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:12.6pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 10.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:12.6pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Additional
 Information</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:12.6pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">92</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Articles of Incorporation and
 By-Laws</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">92</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Material Contracts</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">97</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Exchange Controls and Other
 Limitations Affecting Securities Holders</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">97</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Taxation</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">98</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Documents on Display</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">102</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 11.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Quantitative
 and Qualitative Disclosures About Market Risks</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">102</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Liquidity Risk  </p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">102</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Foreign Currency Exchange
 Risk  </p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">102</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Interest Rate Risk  </p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">104</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Credit Risk  </p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">105</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Capital Management</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">109</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 12.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Description
 of Securities Other than Equity Securities</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">110</p>
 </td>
 </tr>
 <tr>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">PART II</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 13.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Defaults,
 Dividend Arrearages and Delinquencies</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">110</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 14.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Material
 Modifications to the Rights of Security Holders and Use of Proceeds</p>
 </td>
 <td  colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">110</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 15.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Controls
 and Procedures</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">110</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 16A.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Audit
 Committee Financial Expert</p>
 </td>
 <td  colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">110</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 16B.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Code
 of Business Conduct and Ethics</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">111</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 16C.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Principal
 Accountant Fees and Services</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">115</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 16D.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Exemption
 from the Listing Standards for Audit Committees</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">115</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 16E.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Purchases
 of Equity Securities by the Issuer and Affiliated Purchaser</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">115</p>
 </td>
 </tr>
 <tr style='height:11.7pt'>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:11.7pt'>
 <p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:11.7pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:11.7pt'>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">PART III</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:11.7pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">116</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 17.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Consolidated
 Financial Statements</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">116</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 18.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Consolidated
 Financial Statements</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">116</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Item
 19.</p>
 </td>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:5.4pt' style="margin-top:0;margin-bottom:0">Exhibits</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">116</p>
 </td>
 </tr>
 <tr style='height:.1in'>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:.1in'>
 <p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:.1in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:.1in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:.1in'>
 <p align=center style='text-align:center;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:12.6pt'>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:12.6pt'>
 <p style="margin-top:0;margin-bottom:0">EXHIBIT INDEX</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:12.6pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:12.6pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:12.6pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">118</p>
 </td>
 </tr>
 <tr style='height:5.85pt'>
 <td  colspan=4 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:5.85pt'>
 <p style='line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:5.85pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:5.85pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:5.85pt'>
 <p align=center style='text-align:center;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.95pt'>
 <td  colspan=4 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:13.95pt'>
 <p style="margin-top:0;margin-bottom:0">CERTIFICATION</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:13.95pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:13.95pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:13.95pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">123</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='text-indent:22.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:1.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

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

</div>

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

<div>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><a
name="_Toc170286130"></a><a name="_Toc75779184"></a><a name="_Toc46082243"></a><a
name="_CERTAIN_CONVENTIONS_AND_TERMS USED "></a><b>CERTAIN
CONVENTIONS AND TERMS USED IN THIS REPORT</b></p>

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

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

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

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

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

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

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
this report, unless otherwise specified or the context otherwise requires, all
references to &#147;pesos,&#148; &#147;Philippine pesos&#148; or &#147;Php&#148; are to the lawful currency
of the Philippines, all references to &#147;dollars,&#148; &#147;U.S. dollars&#148; or &#147;US$&#148; are to
the lawful currency of the United States, all references to &#147;Japanese yen,&#148;
&#147;JP&yen;&#148; or &#147;&yen;&#148; are to the lawful currency of Japan, and all references to &#147;Euro&#148;
or &#147;&#128;&#148; are to the lawful currency of the European Union.  Unless otherwise
indicated, translations of peso amounts into U.S. dollars in this report were
made based on the volume weighted average exchange rate quoted through the
Philippine Dealing System, which was Php41.411 to US$1.00 on December 31, 2007.
On April 3, 2007, the volume weighted average exchange rate quoted was Php41.552
to US$1.00.</p>

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

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

<p style='text-indent:.5in;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;
ACeS Philippines means ACeS
Philippines Cellular Satellite Corporation, our wholly-owned subsidiary;</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
AIL means ACeS International
Limited, a 36.99%-owned associate of ACeS Philippines;</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Airborne Access means Airborne
Access Corporation, a 51%-owned subsidiary of ePLDT;</p>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ePLDT Ventus means the umbrella
brand name for ePLDT&#146;s customer interaction services, including Ventus, Vocativ
and Parlance;</p>

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

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

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
First Pacific Group means First
Pacific and its Philippine and other affiliates;</p>

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

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

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

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

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

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

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
IFRS means International Financial
Reporting Standards as issued by the International Accounting Standards Board;</p>

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

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

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Level Up! means Level Up!, Inc., a
60%-owned subsidiary of ePLDT;</p>

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

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

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

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

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
netGames means netGames, Inc., an 80%-owned
subsidiary of ePLDT;</p>

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

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

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

<p style='margin-left:0in !msorm;text-indent:.5in !msorm;
line-height:7.0pt !msorm;margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
NTT means Nippon Telegraph and
Telephone Corporation;</p>

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

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

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

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

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

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

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

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

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

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

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PFRS means Philippine Financial
Reporting Standards;</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Piltel means Pilipino Telephone
Corporation, a 92.1%-owned subsidiary of Smart; </p>

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

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

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

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

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

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

<p style='text-indent:0in !msorm;line-height:94% !msorm;
text-indent:.5in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;line-height:
94%' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SIM means
subscriber identification module;</p>

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

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

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

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

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SBI means Smart Broadband, Inc.,
our wireless broadband provider and a wholly-owned subsidiary of Smart; </p>

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

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

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
SPi Group means SPi and its
subsidiaries;</p>

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Wolfpac means Wolfpac Mobile,
Inc., our wireless content operator and a wholly-owned subsidiary of Smart.</p>

<p style='text-indent:.5in;line-height:9.0pt' 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"><a
name="_Toc170286131"></a><a name="_Toc75779185"></a><a name="_Toc46082244"></a><a
name="_FORWARD-LOOKING_STATEMENTS"></a><b>FORWARD-LOOKING
STATEMENTS</b></p>

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

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

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">A forward-looking statement may include a statement of
the assumptions or bases underlying the forward-looking statement.  We have
chosen these assumptions or bases in good faith.  These forward-looking statements are subject to risks, uncertainties
and assumptions, some of which are beyond our control.  In addition, these
forward-looking statements reflect our current views with respect to future
events and are not a guarantee of future performance.  Actual results may
differ materially from information contained in the forward-looking statements
as a result of a number of factors, including, without limitation, the risk
factors set forth in Item&nbsp;3. &#147;Key Information &#150;&#150; Risk Factors.&#148;  When considering forward-looking statements, you should keep
in mind the description of risks and other cautionary statements in this
report.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">You
should also keep in mind that any forward-looking statement made by us in this
report or elsewhere speaks only as at the date on which we made it.  New risks
and uncertainties come up from time to time, and it is impossible for us to
predict these events or how they may affect us.  We have no duty to, and do not
intend to, update or revise the statements in this report after the date
hereof.  In light of these risks and uncertainties, you should keep in mind
that actual results may differ materially from any forward-looking statement
made in this report or elsewhere.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><a name="_Toc75779186"></a><a
name="_Toc46082245">&nbsp;</a></p>

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
consolidated financial statements as of and for the years ended December 31,
2007 and 2006 included in this Annual Report on Form 20-F have been prepared in
conformity with International Financial Reporting Standards as issued by the
International Accounting Standards Board (&#147;IFRS&#148;).   We adopted IFRS effective
as of and for the fiscal year ended December 31, 2007 by applying IFRS 1:
First-Time Adoption of International Reporting Standards. Our consolidated
financial statements as at and for the year ended December 31, 2006 were
originally prepared in accordance with generally accepted accounting principles
in the United States, or U.S. GAAP, and were restated in accordance with IFRS
for comparative purposes only.  An
explanation of how the transition to IFRS from U.S. GAAP has affected our
reported financial position, financial performance and cash flows is provided
in <i>Note 2 &#150; Summary of Significant Accounting Policies and Practices &#150;
First-time Adoption and Transition to IFRS</i> in the accompanying audited
consolidated financial statements in Item 18.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
accordance with rule amendments adopted by the U.S. Securities Exchange
Commission, or U.S. SEC, which became effective on March 4, 2008, we do not
provide a reconciliation to U.S. GAAP.  Furthermore, pursuant to the
transitional relief granted by the U.S. SEC in respect of the first-time adoption
of IFRS, we have omitted in this Annual Report on Form 20-F financial
statements and financial information for the year ended December 31, 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">The
consolidated financial statements included in our Annual Reports on Form 20-F
filed with the U.S. SEC in respect of the years ended December 31, 2006, 2005,
2004, 2003 and 2002 were prepared in conformity with U.S. GAAP and, prior to
that, in conformity with PFRS.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">IFRS
differs in certain significant aspects from U.S. GAAP and PFRS.  As a result,
our financial information presented under IFRS is not directly comparable to
our financial information presented in our previous Annual Reports on Form 20-F
filed with the U.S. SEC.  </p>

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

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><a
name="_Toc170286132"></a><a name="_PART_I"></a>PART I</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"><a name="_Toc170286133"></a><a name="_Toc75779187"></a><a
name="_Toc46082246"></a><a name="_Item_1._Identity_of Directors, Seni"></a><b>Item 1.       Identity of Directors, Senior Management
and Advisors</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-top:0;margin-bottom:0">Not applicable.</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-top:0;margin-bottom:0"><a name="_Toc170286134"></a><a name="_Toc75779188"></a><a
name="_Toc46082247"></a><a name="_Item_2._Offer_Statistics and Expect"></a><b>Item 2.       Offer Statistics and Expected Timetable</b></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">Not applicable.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286135"></a><a
name="_Toc75779189"></a><a name="_Toc46082248"></a><a
name="_Item_3._Key_Information"></a><b>Item 3.       Key
Information</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='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286136"></a><a
name="_Toc75779190"></a><a name="_Toc46082249"></a><a
name="_Selected_Financial_Data"></a><b>Selected
Financial Data</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='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
selected consolidated financial information below as of and for the years ended
December 31, 2007 and 2006  should be read in conjunction with, and is qualified
in its entirety by reference to, our consolidated financial statements,
including the notes, included elsewhere in this Annual Report.  As disclosed
above under &#147;Presentation of Financial Information&#148;, our consolidated financial
statements as at, and for the years ended, December 31, 2007 and 2006 have been
prepared and presented in conformity with IFRS. </p>

<p style='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
selected consolidated financial information below as at and for the years ended
December 31, 2005, 2004, and 2003 is based on financial statements prepared and
presented in conformity with U.S. GAAP and  should be read in conjunction with,
and is qualified in its entirety by reference to, such consolidated financial
statements, including the notes, included in our previous Annual Report for the
fiscal year ended December 31, 2006 filed with the U.S. SEC on June 27, 2007.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Therefore,
data for 2005, 2004 and 2003 are not comparable with data for 2007 and 2006 and
are presented separately.</p>

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

<p style="margin-top:0;margin-bottom:0"><b><i>Amounts in conformity
with IFRS:</i></b></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:97.9%;border-collapse:collapse'>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;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;background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <p align=center style='margin-right:8.65pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Consolidated
 Financial Data</b></p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;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;background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <p align=center style='margin-right:8.65pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December
 31,</b></p>
 </td>
 </tr>

 <tr style='height:1.0pt'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2007</b>(1) </p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </div>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <p align=center style='margin-left:8.0pt;text-align:center;
 text-indent:-8.0pt;line-height:97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions, except earnings per
 common share, ratio of earnings to fixed charges and dividends declared per
 common share)</p>
 </td>
 </tr>

 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Statements
 of Operating Data:</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total
 Revenues</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$3,667</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php151,862</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;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">Php139,724</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt;text-indent:1.1pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Service
 revenues</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,271</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">135,476</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;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">124,987</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt;text-indent:1.1pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Non-service
 revenues</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">78</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,226</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,520</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt;text-indent:1.1pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign
 exchange gains &#150; net</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">193</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,990</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;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">4,823</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt;text-indent:1.1pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest
 Income</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,503</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;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">1,654</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt;text-indent:1.1pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other
 Income</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">89</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,667</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;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">5,740</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Expenses</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,265</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">93,781</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;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">101,475</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net
 income </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">948</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">39,274</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;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">32,581</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Earnings
 per common share</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt;text-indent:1.1pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4.97</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">205.84</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;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">173.10</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:7.9pt;text-indent:1.1pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4.95</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">204.88</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;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">173.01</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Balance
 Sheets Data:</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash
 and cash equivalents</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">421</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,447</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,870</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total
 assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,799</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">240,158</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">241,904</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total
 long-term debt - net of current portion</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,289</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">53,372</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;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">63,769</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total
 debt(2)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,464</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">60,640</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;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">80,154</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total
 liabilities(3)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,086</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">127,813</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;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">139,051</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total
 stockholders&#146; equity</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,713</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">112,345</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;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">102,853</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Other
 Data:</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Depreciation
 and amortization </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">691</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">28,613</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;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">31,869</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Ratio
 of earnings to fixed charges(4)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8.4x</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8.4x</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;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">5.1x</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net
 cash provided by operating activities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,869</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">77,418</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">69,211</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net
 cash used in investing activities</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">756</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31,319</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;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">35,790</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net
 cash used in financing activities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,082</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">44,819</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;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">45,900</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Dividends
 declared to common shareholders</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">683</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">28,299</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;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">14,459</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-left:8.0pt;text-indent:-8.0pt;line-height:
 97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Dividends
 declared per common share</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3.62</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">150.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;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">78.00</p>
 </td>
 </tr>
</table></center></div>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Amounts in conformity with U.S. GAAP:</i></b></p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:97.68%;margin-left:1.0pt;border-collapse:collapse'>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=center style='margin-right:8.65pt;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;background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <p align=center style='margin-right:8.65pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Consolidated
 Financial Data</b></p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=center style='margin-right:8.65pt;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;background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <p align=center style='margin-right:8.65pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December
 31,</b></p>
 </td>
 </tr>

 <tr style='height:1.0pt'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <p align=center style='margin-left:8.0pt;text-align:center;
 text-indent:-8.0pt;line-height:97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </div>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <p align=center style='margin-left:8.0pt;text-align:center;
 text-indent:-8.0pt;line-height:97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.5pt 0in 5.5pt;
 height:1.0pt'>
 <p align=center style='margin-left:8.0pt;text-align:center;
 text-indent:-8.0pt;line-height:97%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in millions, except operating
 income per share, earnings per common share, ratio of earnings to fixed
 charges and dividends declared per common share)</p>
 </td>
 </tr>

 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <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=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:7.85pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Statements of Operating Data:</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:7.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:7.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Revenues and Other Income</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php123,335</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php121,173</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php111,200</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;text-indent:12.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Service revenues</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">120,348</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">114,904</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100,486</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;text-indent:12.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Non-service revenues</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,987</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,269</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,714</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Expenses</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">74,821</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">72,634</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">77,821</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Operating income per share</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;text-indent:12.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">263.81</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">266.73</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">179.04</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;text-indent:12.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">255.15</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">252.20</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">165.37</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:6.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net income </p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:6.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">40,603</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">28,101</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,045</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Earnings per common share</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;text-indent:12.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">217.84</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">146.32</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">47.20</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;text-indent:12.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">211.93</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">145.30</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">45.72</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Balance Sheets Data:</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30,059</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">27,321</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">19,372</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total assets</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">269,709</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">279,041</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">276,362</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total long-term debt - net of current portion</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">93,516</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">131,377</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">160,464</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total debt(2)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">112,313</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">159,455</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">186,407</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total liabilities(3)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">176,980</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">215,145</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">236,630</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total stockholders&#146; equity</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">79,595</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48,079</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24,746</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Other Data:</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Depreciation and amortization </p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">27,855</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20,098</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">21,812</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Ratio of earnings to fixed charges(4)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5.9x</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4.1x</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2.0x</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net cash provided by operating activities</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">66,280</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">63,107</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">42,582</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net cash used in investing activities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,080</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24,764</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20,021</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net cash used in financing activities</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">49,470</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30,325</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,135</p>
 </td>
 </tr>
 <tr style='height:1.0pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Dividends declared to common shareholders</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,624</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:1.0pt' style='height:1.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;height:1.0pt'>
 <p style='margin-right:8.65pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Dividends declared per common share</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;height:1.0pt'>
 <p align=right style='margin-right:8.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.5pt 0in 5.5pt 0in 5.5pt 0in 5.5pt !msorm;height:1.0pt'>
 <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>
 </tr>
</table></center></div>

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

<p 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>We maintain our accounts in
Philippine peso.  For convenience, the peso financial information as at and for
the year ended December 31, 2007, has been translated into U.S. dollars at the
exchange rate of Php41.411 to US$1.00, the rate quoted through the Philippine
Dealing System as at December 31, 2007.  This translation should not be construed
as a representation that the Philippine peso amounts represent, or have been or
could be converted into, U.S. dollars at that rate or any other rate.</i></p>

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

<p style='margin-left:0in;text-indent:0in' style="margin-top:0;margin-bottom:0"><i>(2)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Total debt represents
current portion of long-term debt, long-term debt &#151; net of current portion and
notes payable.</i></p>

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

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(3)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Total liabilities on a
consolidated basis represent the difference between total assets and minority
interest in consolidated subsidiaries, preferred stock subject to mandatory
redemption and stockholders&#146; equity.</i></p>

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

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(4)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>For purposes of this ratio,
&#147;Earnings&#148; consist of: (a) pre-tax income from continuing operations before
adjustment for minority interest in consolidated subsidiaries or income or loss
from equity investees, (b) fixed charges, (c) amortization of capitalized
interest, (d) distributed income of equity investees, and (e) share of pre-tax
losses of equity investees for which charges arising from guarantees are
included in fixed charges; less the sum of the following: (1) capitalized
interest, (2) preference security dividend requirements of consolidated
subsidiaries, and (3) the minority interest in pre-tax income of subsidiaries
that have not incurred fixed charges</i></p>

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

<p style='margin-left:.25in;line-height:9.0pt' style="margin-top:0;margin-bottom:0"><i>&#147;Fixed charges&#148; consist of interest expensed and
capitalized interest, amortized premiums, discounts and capitalized expenses
related to indebtedness, an estimate of interest within rental expense, and
preference security dividend requirements of consolidated subsidiaries.</i></p>

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

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286137"></a><a
name="_Toc75779191"></a><a name="_Toc46082250"></a><a name="_Capital_Stock"></a><b>Capital Stock</b></p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
following table summarizes PLDT&#146;s capital stock outstanding as at December 31,
2007 and 2006:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:94.12%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:11.25pt'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:11.25pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.5pt' style='page-break-inside:
 avoid !msorm;height:10.5pt !msorm'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:10.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:10.5pt'>
 <p style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 5.4pt 0in 5.4pt !msorm;height:10.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt;border-top:solid windowtext 1.0pt !msorm;
 border-left:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;
 border-right:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;height:10.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.15pt' style='page-break-inside:
 avoid !msorm;height:9.15pt !msorm'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:9.15pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:9.15pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.55pt' style='page-break-inside:
 avoid !msorm;height:8.55pt !msorm'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.55pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Serial Preferred Stock</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.55pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.55pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;
 height:8.55pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.1pt' style='page-break-inside:
 avoid !msorm;height:8.1pt !msorm'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.1pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">10% Cumulative Convertible Preferred Stocks</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.1pt'>
 <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:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.1pt'>
 <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:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.1pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.15in' style='page-break-inside:
 avoid !msorm;height:.15in !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.15in'>
 <p style='margin-left:22.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">A to EE</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.15in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php4,056.5</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.15in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:.15in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php4,063.8</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt' style='page-break-inside:
 avoid !msorm;height:9.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:9.0pt'>
 <p style='margin-left:27.0pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Convertible Preferred Stocks Subject to
 Mandatory Redemption</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;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='page-break-inside:avoid;height:9.0pt' style='page-break-inside:
 avoid !msorm;height:9.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:9.0pt'>
 <p style='margin-left:27.0pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Series V(1)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:9.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">0.3</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:9.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">0.5</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt' style='page-break-inside:
 avoid !msorm;height:9.0pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:9.0pt'>
 <p style='margin-left:27.0pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Series VI(1)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:9.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">6.8</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:9.0pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">8.8</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.1pt' style='page-break-inside:
 avoid !msorm;height:8.1pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.1pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cumulative Non-convertible Redeemable
 Preferred Stock</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.1pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.1pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.1pt'>
 <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:8.1pt' style='page-break-inside:
 avoid !msorm;height:8.1pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.1pt'>
 <p style='margin-left:27.0pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Series IV</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:8.1pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">360.0</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.1pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 5.4pt 0in 5.4pt !msorm;
 height:8.1pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">360.0</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.05pt' style='page-break-inside:
 avoid !msorm;height:10.05pt !msorm'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:10.05pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm;height:10.05pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php4,423.6</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:10.05pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm;height:10.05pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php4,433.1</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.1pt' style='page-break-inside:
 avoid !msorm;height:8.1pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.1pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Common Stock</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm;height:8.1pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php943.7</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm;height:8.1pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;border-bottom:double windowtext 2.25pt !msorm;padding:
 0in 5.4pt 0in 5.4pt !msorm;height:8.1pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php942.2</p>
 </td>
 </tr>
</table></center></div>

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

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

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

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286138"></a><a name="_Dividends_Declared"></a><b>Dividends Declared</b></p>

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The table sets forth dividend declarations on shares of
PLDT&#146;s common stock in 2007 and 2006:</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:458.05pt;margin-left:5.4pt;border-collapse:collapse'>
 <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  colspan=6 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>Date</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>Amount</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Earnings</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=' 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>Approved</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' 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' style="margin-top:0;margin-bottom:0"><b>Record</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>Payable</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' 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>Per share</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>Total Declared</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">August 8, 2006</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">August 21, 2006</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">September 21, 2006</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php50</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php9,379</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">March 6, 2007</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">March 20, 2007</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">April 20, 2007</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php50</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">9,429</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">August 7, 2007</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">August 24, 2007</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">September 24, 2007</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php40</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">7,548</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php140</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php26,356</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">August 7, 2007</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">August 24, 2007</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">September 24, 2007</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php60</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php11,322</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">March 4, 2008</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">March 19, 2008</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">April 21, 2008</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php68</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php12,834</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">March 4, 2008</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">March 19, 2008</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">April 21, 2008</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php56</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php10,570</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php184</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php34,726</p>
 </td>
 </tr>
</table></center></div>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
current policy is to declare and pay dividends taking into consideration the
interests of our shareholders as well as our working capital, capital
expenditures and debt servicing requirements.  Also taken into consideration
are our ability to meet loan covenant requirements in the declaration and
payment of dividends as discussed in <i>Note</i> <i>17 &#150; Equity</i> and <i>Note
18 &#150; Interest-bearing Financial Liabilities </i>to the accompanying audited consolidated
financial statements in Item 18.  The retention of earnings is necessary to
meet the funding requirements of our business expansion and development
programs.  Unappropriated retained earnings of PLDT include undistributed
earnings representing accumulated equity in the net earnings of our
subsidiaries, which are not available for distribution as dividends until
received in the form of dividends from such subsidiaries (see <i>Note 17 &#150; Equity</i>
to the accompanying audited consolidated financial statements in Item 18).
Dividends are generally paid in Philippine pesos.  In the case of shareholders
residing outside the Philippines, PLDT's transfer agent in Manila, which acts
as the dividend-disbursing agent, converts the peso dividends into U.S. dollars
at the prevailing exchange rates, and remits the dollar proceeds abroad, net of
applicable withholding tax.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286139"></a><a
name="_Toc75779193"></a><a name="_Toc46082252"></a><a name="_Dividends_Paid"></a><b>Dividends Paid</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='page-break-after:avoid' style="margin-top:0;margin-bottom:0">A
summary of dividends paid per share of PLDT's common stock stated in both
Philippine peso and U.S. dollars follows:</p>

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

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

 <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:8.65pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>In Philippine Peso</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>In U.S. Dollars</b></p>
 </td>
 </tr>
 <tr style='height:9.75pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:9.75pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:9.75pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:9.75pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:9.75pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:8.65pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">2005</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">1.142</p>
 </td>
 </tr>
 <tr style='height:8.65pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006 </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">70.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">1.590</p>
 </td>
 </tr>
 <tr style='height:8.65pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2007 </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p align=center style='margin-right:5.05pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">140.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">3.381</p>
 </td>
 </tr>
 <tr style='height:8.65pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">April 20</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">50.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">1.051</p>
 </td>
 </tr>
 <tr style='height:8.65pt'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">September 24 (Regular)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">60.00</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">1.328</p>
 </td>
 </tr>
 <tr style='height:8.65pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">September 24 (Special)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">40.00</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">0.885</p>
 </td>
 </tr>
 <tr style='height:8.65pt'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2008 (through April 3, 2008)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt;
 height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:8.65pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:27.0pt;text-indent:-27.0pt' style="margin-top:0;margin-bottom:0"><i>Note</i>:    <i>Dividends
on PLDT's common stock were declared and paid in Philippine peso.  For the
convenience of the reader, the peso dividends are translated into U.S. dollars
based on exchange rates on the respective dates of dividend payments.</i></p>

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

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286140"></a><a name="_Toc75779194"></a><a
name="_Toc46082253"></a><a name="_Exchange_Rates"></a><b>Exchange Rates</b></p>

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

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

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

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

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=7 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Year Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Period End</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Average</b><b>(1)</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>High</b><b>(2)</b></p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Low</b><b>(3)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php55.586</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php54.215</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php52.021</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php55.767</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56.341</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56.044</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">55.142</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56.443</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style="margin-top:0;margin-bottom:0">2005</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">53.062</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">55.085</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">53.062</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56.321</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style="margin-top:0;margin-bottom:0">2006 </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">49.045</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">51.332</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">49.045</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">53.587</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style="margin-top:0;margin-bottom:0">2007 </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">41.411</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46.184</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">41.142</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">49.156</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style="margin-top:0;margin-bottom:0">2008 (through April 3, 2008)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">41.552</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">40.984</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">40.360</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">41.868</p>
 </td>
 </tr>
</table></center></div>

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

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

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

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

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

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

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=7 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Month</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Period End</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Average</b><b>(1)</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>High</b><b>(2)</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.5pt 0in 5.5pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Low</b><b>(3)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">September</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">44.974</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">46.047</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">44.974</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">46.940</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">October</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">43.730</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">44.321</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">43.730</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">45.041</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">November</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">42.759</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">43.167</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">42.759</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">43.761</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">December</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">41.411</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">41.668</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">41.142</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">42.362</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">January</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">40.626</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">40.902</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">40.524</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">41.514</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">February</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">40.457</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">40.663</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">40.360</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">40.954</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">March
 (through April 3, 2008)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">41.552</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">41.587</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">41.528</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">41.681</p>
 </td>
 </tr>
</table></center></div>

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

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

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

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

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

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

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

<p style="margin-top:0;margin-bottom:0">This report contains conversions
of Philippine peso amounts into U.S. dollars for your convenience.  Unless
otherwise specified, these conversions were made at the exchange rate as at
December 31, 2007 of Php41.411 to US$1.00.  You should not assume that such
peso amounts represent such U.S. dollar amounts or could have been or could be
converted into U.S. dollars at the rate indicated, or at any particular rate.
As at April 3, 2008, the exchange rate quoted through the Philippine Dealing
System was Php41.552 to US$1.00.</p>

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

<p style="margin-top:0;margin-bottom:0"><a name="OLE_LINK30"></a><a name="OLE_LINK29"></a><a
name="_Toc170286141"></a><a name="_Toc75779195"></a><a name="_Toc46082254"></a><a
name="_Toc42934525"></a><a name="_Risk_Factors"></a><b>Risk Factors</b><b> </b></p>

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

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

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>We face competition from well-established
telecommunications operators and may face competition from new entrants that
may adversely affect our business, results of operations, financial condition
and prospects</i></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The Philippine government has liberalized the Philippine
telecommunications industry and opened up the Philippine telecommunications
market to new entrants.  Including the PLDT Group, there are nine major local
exchange carriers, seven international gateway facility providers and five
cellular service providers in the country.  Many new entrants into the
Philippine telecommunications market have entered into strategic alliances with
foreign telecommunications companies, which provide them access to
technological and funding support as well as service innovations and marketing
strategies.  Consequently, we are facing increasing competition in major
segments of the telecommunications industry, particularly data and other
network services segments.  There can be no assurance that the
number of providers of telecommunication services will not further increase or
that competition for telecommunications customers will not lead our cellular and
fixed line subscribers to switch to other operators or lead us to increase our marketing
expenditures or reduce our rates, resulting in a reduction in our
profitability.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Competition in the cellular telecommunications industry in the Philippines is based primarily on factors such as network coverage, quality of service and
price.  Recently, competition has increased as operators sought to develop and
maintain market share and to attract new subscribers.  Our principal cellular
competitors, Globe Telecom, Inc., or Globe, and Digital Telecommunications
Philippines, Inc., or Digitel, have introduced aggressive marketing campaigns
and promotions.  In addition, the government may allocate additional
frequencies and award additional cellular telecommunications licenses in the
future which could lead to increased competition.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
..5in' style="margin-top:0;margin-bottom:0">As a result of the
competitive environment, Smart has not increased its cellular rates since
November 1998.  Moreover, the level of competition requires Smart to
continuously innovate its products and to conduct promotions, which may affect
its cellular revenues and revenue growth.  For example, in order to test the
market demand for fixed rate or &#147;bucket&#148; plans for voice and text services and
in response to similar types of promotions launched by its competitors, Smart
launched promotions<i> </i>pursuant to which Smart and <i>Talk &#145;N Tex</i>t
prepaid subscribers had the option to avail themselves of unlimited on-network
(Smart-to-Smart) voice calls or unlimited on-network (Smart-to-Smart) text
messages at a fixed rate. </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;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">There can be no
assurance that incurring additional marketing expenses for these promotions and
responding to rate pressures and the potential loss of customers will not have
a material adverse effect on our financial performance.</p>

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

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

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The majority of our total revenues are currently derived from
cellular services.  As a result, we depend on the continued development and
growth of the cellular telecommunications industry.  The cellular penetration
rate in the Philippines is estimated to have reached over 60%.  As such, our
cellular business is expected to grow at a slower rate as the penetration rate
increases, an increasing number of subscribers own multiple SIM cards and Smart moves further into the lower-income segments of the
market.  The growth of the cellular communications market depends on many
factors beyond our control, including the continued introduction of new and
enhanced cellular devices, the price levels of cellular handsets, consumer
preferences and amount of disposable income of existing and potential
subscribers.  Any economic, technological or other developments resulting in a reduction
in demand for cellular services may harm our business.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Rapid changes in telecommunications technology may
adversely affect the economics of our existing businesses and the value of our
assets, increase our required capital expenditures and create new competition</h5>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
telecommunications sector has been characterized recently by rapid
technological changes.  There can be no assurance that these developments will
not result in competition from providers of new services or the need to make
substantial capital expenditures to upgrade our facilities.  Furthermore, the
NTC has issued to Smart and our competitors licenses covering 3G cellular
services, and we have incurred significant expenses in the rollout of these
services.  We are also rolling out a wireless broadband network and continuing
to upgrade to a next generation, all-IP network in order to expand our capability
to provide broadband services.  These projects require and will continue to
require significant capital expenditures over the next few years.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
future success will depend, in part, on our ability to anticipate or adapt to
such changes and to offer services that meet customer demands on a competitive
and timely basis.  We may be unable to obtain new technologies on a timely
basis or on satisfactory terms or implement them in an appropriate or effective
manner.  Future development of new technologies, services or standards could
require significant changes to our business model, which could negatively
impact our existing businesses and could necessitate new investments.  In
addition, new products and services may be expensive to develop and may result
in increased competition.  Such strategic initiatives and technological
developments could require us to incur significant additional capital
expenditures.  There can be no assurance that we would be able to adopt and
successfully implement new technologies.  In addition, there can be no
assurance on how emerging and future technological changes will affect our
operations or the competitiveness of our services.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Our financial position could be materially and adversely affected if
the Philippine peso significantly fluctuates against the U.S. dollar</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Substantially
all of our indebtedness and related interest expense, a substantial portion of
our capital expenditures and a portion of our expenses are denominated in U.S.
dollars and other foreign currencies, but a significant portion of our revenues
is denominated in Philippine pesos.  As at December 31, 2007, 88% of our total
consolidated indebtedness was foreign currency-denominated, of which approximately
45% was unhedged.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">A
depreciation of the Philippine peso against the U.S. dollar increases the
amount of our debt obligations and operating and interest expenses in peso
terms.  In the event that the Philippine peso depreciates against the U.S.
dollar, we may be unable to generate enough funds through operations and other
means to offset the resulting increase in our obligations in peso terms.  These
changes could cause us not to be in compliance with the financial covenants
imposed by our lenders under certain loan agreements and other indebtedness.  Further,
fluctuations in the Philippine peso value and of interest rates impact the
mark-to-market gains/losses of certain of our financial debt instruments which
were designated as non-hedged items.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;text-indent:
..5in' style="margin-top:0;margin-bottom:0">On the other hand,
approximately 38% of PLDT Group&#146;s consolidated service revenues are either
denominated in U.S. dollars or is linked to the U.S. dollar.  In this respect,
an appreciation of the Philippine peso against the U.S. dollar reduces our
revenues in peso terms and reduces our cash flow from operations.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:3.0pt;text-indent:.5in' style="margin-top:0;margin-bottom:0">The Philippine peso has been subject to
significant fluctuations in recent years.  From 2003 to 2005, the Philippine peso
generally depreciated from a high of Php52.021 on May 8, 2003 to a low of
Php56.443 on October 14, 2004.  In 2005, the peso fluctuated significantly from
a low of Php56.321 on July 8 to a high of Php53.062 on December 29, 2005.  While
the peso appreciated in 2006 and continued to appreciate in 2007, there can be
no assurance that the peso will not depreciate and be subject to significant
fluctuations going forward due to a range of factors, including:</p>

<p style='margin-bottom:6.0pt;text-indent:0in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
political and
economic developments affecting the Philippines;</p>

<p style='margin-bottom:6.0pt;text-indent:0in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
global economic
trends;</p>

<p style='margin-bottom:6.0pt;text-indent:0in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the volatility of
regional currencies, particularly the Japanese yen;</p>

<p style='margin-bottom:6.0pt;text-indent:0in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
any interest rate
increases by the Federal Reserve Bank of the United States;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:
6.0pt;margin-left:.75in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
higher demand for
U.S. dollars by both banks and domestic businesses to service their maturing
U.S. dollar obligations; and</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:
0in;margin-left:.75in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
foreign exchange
traders including banks covering their short U.S. dollar positions.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Our results of operations have been, and may continue to be, adversely
affected by competition in, and the emergence of new services which may put additional
pressure on, our traditional international and national long distance services</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
international long distance business has historically been one of our major
sources of revenue.  However, due to competition and the steep decline in
international settlement rates that are paid to us by foreign
telecommunications carriers for termination of international calls on our
network, revenues generated from our international long distance business have
overall declined in recent years.  </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
anticipate that revenues from international long distance and international
data services, including our services, will continue to decline in the future,
due primarily to:</p>

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

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
increased
competition from other domestic and international telecommunications providers;</p>

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

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
advances in
technology;</p>

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

<p align=left style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:left;
text-indent:-.25in;page-break-after:auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
alternative
providers offering internet telephony, also known as Voice over Internet Protocol,
or VoIP, and broadband capacity; and </p>

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

<p align=left style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:left;
text-indent:-.25in;page-break-after:auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
unauthorized
traffic termination and bypass routings by international simple resale
operators.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
continued increase in cellular penetration in the Philippines and the
prevalence of SMS has negatively impacted our national long distance business
in recent years.  There can be no assurance that we will be able to generate
new revenue streams that may fully offset the declines in our traditional fixed
line long distance businesses or that these declines will not materially and
adversely affect our financial performance.</p>

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

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

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

<p style="margin-top:0;margin-bottom:0"><i>We may not be successful
in our acquisitions of and investments in other companies and businesses, and
may therefore be unable to implement fully our business strategy </i></p>

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

<p align=left style='margin-top:0in;text-align:left;
text-indent:.5in;line-height:normal' style="margin-top:0;margin-bottom:0">As
part of our growth strategy, we may, from time to time, make acquisitions and
investments in companies or businesses. The success of our acquisitions and
investments depends on a number of factors, including:</p>

<p align=left style='margin-left:.75in;text-align:left;
text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
our ability
to identify suitable opportunities for investment or acquisition; </p>

<p align=left style='margin-left:.75in;text-align:left;
text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
our ability
to reach an acquisition or investment agreement on terms that are satisfactory
to us or at all; </p>

<p align=left style='margin-left:.75in;text-align:left;
text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the
extent to which we are able to exercise control over the acquired company; </p>

<p align=left style='margin-left:.75in;text-align:left;
text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the
economic, business or other strategic objectives and goals of the acquired
company compared to those of the PLDT Group; and </p>

<p align=left style='margin-left:.75in;text-align:left;
text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
our ability
to successfully integrate the acquired company or business with our existing
businesses. </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Any
of our contemplated acquisitions and investments may not be consummated due to
reasons or factors beyond our control.  Even if any contemplated acquisitions
and investments are consummated, we may not be able to realize any or all of
the anticipated benefits of such acquisitions and investments.  Moreover, if we
are unsuccessful in our contemplated acquisitions and investments, we may not
be able to implement fully our business strategy to maintain or grow certain of
our businesses.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Our debt instruments contain restrictive covenants which require us to
maintain certain financial tests and our indebtedness could impair our ability
to fulfill our financial obligations, service our other debt and carry out new
financings or pay dividends</i></p>

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

<p style="margin-top:0;margin-bottom:0">As at December 31, 2007, we had
consolidated total indebtedness of approximately Php60,640 million (US$1,464
million), and a consolidated ratio of debt to equity (total debt on a
consolidated basis divided by total equity) of 0.54x.  Our existing debt instruments
contain covenants which, among other things, require PLDT to maintain certain
financial ratios calculated on the basis of PFRS on a consolidated and
non-consolidated basis, limit our ability to incur indebtedness, make
investments and pay dividends.  For a description of some of these covenants,
see Item 5. &#147;Operating and Financial Review and Prospects &#151; Liquidity and
Capital Resources &#151; Financing Activities &#151; Debt Covenants.&#148;</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our indebtedness and the requirements and limitations
imposed by our debt covenants could have important consequences.  For example,
they could:</p>

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

<p align=left style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:left;
text-indent:-.25in;page-break-after:auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
require us to
dedicate a substantial portion of our cash flow to payments on our
indebtedness, thereby reducing the availability of our cash flow to fund
working capital, capital expenditures and other general corporate requirements;
and</p>

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

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
limit the
availability and amount of dividend payments to our common shareholders.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
principal factors that can negatively affect our ability to comply with the
financial ratios and other financial tests under our debt instruments are
depreciation of the Philippine peso relative to the U.S. dollar, poor operating
performance of PLDT and our consolidated subsidiaries, impairment or similar
charges in respect of investments or other long-lived assets that may be
recognized by PLDT and its consolidated subsidiaries and increases in our
interest expenses.  Since approximately 88% of our total consolidated debts
were denominated in foreign currencies, principally in U.S. dollars, many of
these financial ratios and other tests are negatively affected by any weakening
of the peso.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
have maintained compliance with all of our financial ratios and covenants, as
measured under PFRS, under our loan agreements and other debt instruments.
However, if negative factors adversely affect our financial ratios, we may be
unable to maintain compliance with these ratios and covenants or be unable to
incur new debt.  Inability to comply with the financial ratios and covenants or
raise new financing could result in a declaration of default and acceleration
of some or all of our indebtedness.  The terms of some of our debt instruments
have no minimum amount for cross-default.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">If
we are unable to meet our debt service obligations or comply with our debt
covenants, we could be forced to restructure or refinance our indebtedness,
seek additional equity capital or sell assets.  An inability to effect these
measures successfully could result in a declaration of default and an
acceleration of some or all of our indebtedness.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
addition, we may have difficulty meeting debt payment obligations if we do not
continue to receive cash dividends from Smart.</p>

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

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

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

<p style="margin-top:0;margin-bottom:0">A growing portion of our total revenues
and cash flow from operations is derived from our subsidiaries, particularly
Smart.  Smart and some of our other subsidiaries have significant internal cash
requirements for debt service, capital expenditures and expenses and so may be
financially unable to pay any dividends to PLDT.  Although Smart has been
making dividend payments to PLDT since December 2002, we cannot assure you that
PLDT will continue to receive dividends or other distributions, or otherwise be
able to derive liquidity from Smart or any other subsidiary or investee in the
future.</p>

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

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

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
projects under development and the continued maintenance and improvement of our
networks and services, including Smart&#146;s projects, networks and services,
require substantial ongoing capital investment.  Our consolidated capital
expenditures in 2007 and 2006 totaled Php24,824 million and Php20,674 million,
respectively.  Our 2008 budget for consolidated capital expenditures is
approximately Php25 billion, of which approximately Php9 billion is budgeted to
be spent by PLDT and approximately Php15 billion is budgeted to be spent by
Smart; the balance represents the budgeted capital spending of our other
subsidiaries.  PLDT&#146;s capital spending is intended principally to finance the
continued build-out and upgrade of its data and internet protocol
infrastructures and for its fixed line data services and the maintenance of its
network. <b> </b>Smart&#146;s capital spending is focused on expanding and upgrading
its transmission network facilities to meet increased demand for cellular and
broadband services.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Future
strategic initiatives could require us to incur significant additional capital
expenditures.  We may be required to finance a portion of our future capital
expenditures from external financing sources, which have not yet been fully
arranged.  There can be no assurance that financing for new projects will be
available on terms acceptable to us or at all.  If we cannot complete our
development programs and other capital projects, our growth, results of
operations and financial condition could be materially and adversely affected. <b>  </b></p>

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

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Our businesses depend on the reliability of our
network infrastructure, which is subject to physical, technological and other
risks</h5>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">We depend to a significant degree on an uninterrupted
operation of our network to provide our services.  We also depend on robust
information technology systems to enable us to conduct our operations.  The
development and operation of telecommunications networks are subject to
physical, technological and other risks, which may cause interruptions in
service or reduced capacity for customers.  These risks include:</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
physical
damage;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
power loss;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
capacity
limitation;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
cable theft;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
software
defects; and</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
breaches of
security by computer viruses, break-ins or otherwise.</p>

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

<p style="margin-top:0;margin-bottom:0">The occurrence of any of these
risks could have a material and adverse effect on our ability to provide
services to customers.  While we are undertaking initiatives to prevent and/or
mitigate the occurrence of said risks, including the preparation of a disaster
recovery plan that aims to allow restoration of service at the soonest possible
time from occurrence of an incident.  There can be no assurance that these
risks will not occur or that our initiatives will be effective should such
risks occur.</p>

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

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

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

<p style="margin-top:0;margin-bottom:0">The First Pacific Group has beneficial
ownership of approximately 26.17% in PLDT&#146;s outstanding common stock as at February
29, 2008.  This is the largest block of PLDT&#146;s common stock that is directly or
indirectly under common ownership.  </p>

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

<p align=left style='margin:0in;margin-bottom:.0001pt;
text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">NTT
Communications, which owned 14% of PLDT&#146;s common stock as at December 31, 2005,
transferred on March 14, 2006, approximately 12.6 million shares of PLDT&#146;s
common stock, representing approximately 7% of the then outstanding shares of PLDT&#146;s
common stock, to NTT DoCoMo pursuant to a stock sale and purchase agreement
dated January 31, 2006.  Since March 14, 2006, NTT DoCoMo has made additional
purchases of shares of PLDT common stock and, together with NTT Communications,
beneficially owns 20.86% of PLDT&#146;s common stock as at February 29, 2008.  NTT
Communications is a wholly-owned subsidiary, and NTT DoCoMo a majority-owned
subsidiary of NTT.  In connection with the above acquisition by NTT DoCoMo of
shares of PLDT from NTT Communications, First Pacific and certain of its
affiliates, or the FP Parties, NTT Communications, NTT DoCoMo and PLDT entered
into a Cooperation Agreement, dated January 31, 2006, or the Cooperation
Agreement, pursuant to which, among other things, certain rights of NTT
Communications under the Stock Purchase and Strategic Investment Agreement dated
September 28, 1999 and the Shareholders Agreement dated March 24, 2000 were
extended to NTT DoCoMo.  See Item 7. &#147;Major Shareholders and Related Party
Transactions&#148; for further details regarding the shareholdings of NTT
Communications and NTT DoCoMo in PLDT.  As a result of the Cooperation
Agreement, NTT Communications and NTT DoCoMo, in coordination with each other,
have contractual veto rights over a number of major decisions and transactions
that PLDT could make or enter into, including:  </p>

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

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

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

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

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

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

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

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

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

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

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

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

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

<p style="margin-top:0;margin-bottom:0">Moreover, as a result of the
Shareholders Agreement, the Cooperation Agreement and their respective
stockholdings, the FP Parties, NTT Communications and/or NTT DoCoMo are able to
influence our actions and corporate governance, including:</p>

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

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

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

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

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

<p style="margin-top:0;margin-bottom:0">Additionally, pursuant to
amendments effected by the Cooperation Agreement to the Strategic Agreement and
the Shareholders Agreement, upon NTT Communcations and NTT DoCoMo and their
respective subsidiaries owning in the aggregate 20% or more of PLDT&#146;s shares of
common stock and for as long as they continue to own in the aggregate at least
17.5% of PLDT&#146;s shares of common stock then outstanding, NTT DoCoMo has
additional rights under the Strategic Agreement and Shareholders Agreement,
including that:</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
NTT DoCoMo is entitled to nominate
one additional NTT DoCoMo nominee to the board of directors of each of PLDT and
Smart;</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PLDT must consult NTT DoCoMo no
later than 30 days prior to the first submission to the board of PLDT or
certain of its committees of any proposal of investment in an entity that would
primarily engage in a business that would be in direct competition or
substantially the same business opportunities, customer base, products or
services with business carried on by NTT DoCoMo, or which NTT DoCoMo has
announced publicly an intention to carry on;</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PLDT must procure that Smart does
not cease to carry on its business, dispose of all of its assets, issue common
shares, merge or consolidate, or effect winding up or liquidation without PLDT
first consulting with NTT DoCoMo no later than 30 days prior to the first
submission to the board of PLDT or Smart, or certain of its committees; and </p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PLDT must first consult with NTT
DoCoMo no later than 30 days prior to the first submission to the board of PLDT
or certain of its committees for the approval of any transfer by any member of
the PLDT Group of Smart common capital stock to any person who is not a member
of the PLDT Group.  </p>

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

<p style="margin-top:0;margin-bottom:0">Pursuant to public filings made
with the U.S. SEC by NTT Communications and NTT DoCoMo, as at February 29,
2008, NTT Communications and NTT DoCoMo together beneficially owned 20.86% of
the outstanding shares of PLDT&#146;s common stock.</p>

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

<p style="margin-top:0;margin-bottom:0">The FP Parties and/or NTT
Communications and/or NTT DoCoMo may exercise their respective influence over
these decisions and transactions in a manner that could be contrary to your
interests.</p>

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

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

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

<p style="margin-top:0;margin-bottom:0">If First Pacific Group or NTT
Communications sell all or a portion of their equity interest in PLDT, in
certain circumstances, such sale may give rise to an obligation for PLDT to
make an offer to purchase its outstanding debt under its US$250 million 11.375%
notes due 2012.  As at December 31, 2007, Php10,353 million in principal amount
of PLDT&#146;s indebtedness is directly subject to a change in major shareholding or
offer to purchase requirement.  In such event, if PLDT fails to complete an
offer to purchase the affected debts, all of its debt could become immediately
due and payable as a result of various cross-default provisions.  </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>The franchise of Smart may be revoked due to its failure to conduct a
public offering of its shares </i></p>

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

<p style="margin-top:0;margin-bottom:0">In order to diversify the
ownership base of public utilities, the Philippine Public Telecommunications
Policy Act, or R.A. 7925, requires a telecommunications entity with regulated
types of services to make a public offering through the stock exchanges
representing at least 30% of its aggregate common shares by the later of (i) the
fifth anniversary of the date the law became effective; and (ii) the fifth
anniversary of the date of the entity&#146;s commencement of commercial
operations.   As Smart has not
conducted a public offering of its shares, the Philippine Congress may revoke
the franchise of Smart for its failure to comply with the requirement under
R.A. 7925 on the public offering of its shares.  A <i>quo warranto </i>case may
also be filed against Smart by the Office of the Solicitor General of the Philippines for the revocation of the franchise of Smart on the ground of violation of R.A.
7925.  </p>

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

<p style="margin-top:0;margin-bottom:0">Smart maintains the position that
it has not violated the provision in its franchise to make a public offering of
its shares within a certain period, since it believes such provision is merely
directory.  Further, the policy underlying the requirement for
telecommunications entities to conduct a public offering should be deemed of
having been achieved when PLDT acquired a 100% equity interest in Smart in
2000, given the fact that PLDT was then and continues to be a publicly listed
company.  In September 2004, Senate Bill No. 1675 was filed seeking to declare
that a telecommunication entity shall be deemed to have complied with the requirement
of making a public offering of its shares if two-thirds of its outstanding
voting stock are owned and controlled directly or indirectly, by a listed
company.  This bill is currently pending in Congress.  However, there can be no
assurance that such bill will be enacted or that Philippine Congress will not
revoke the franchise of Smart or the Office of Solicitor General of the
Philippines will not initiate a quo warranto proceeding against Smart for the
revocation of its franchise for failure to comply with the provision under R.A.
7925 on the public offering of shares.</p>

<p 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_LINK17"><i>Our business is significantly affected by governmental
laws and regulations, including regulations in respect of our franchises, rates
and taxes</i></a></p>

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

<p style="margin-top:0;margin-bottom:0">We operate our business under
franchises, each of which is subject to amendment, termination or repeal by the
Philippine Congress.  Additionally, PLDT operates pursuant to various provisional
authorities and certificates of public convenience and necessity, or CPCNs,
which are granted by the NTC and expire between now and 2028.  Some of PLDT&#146;s
CPCNs and provisional authorities have already expired.  However, PLDT filed
applications for extension of these CPCNs and provisional authorities prior to
their respective expiration dates and is therefore entitled to continue to
conduct its business under its existing CPCNs and provisional authorities
pending the NTC&#146;s decisions on these extensions.  Smart also operates its
cellular, international long distance, national long distance and global mobile
personal communications via satellite services pursuant to CPCNs, which will
expire upon the expiration of its franchise.  Smart&#146;s franchise is due to
expire on March 27, 2017, 25 years after the date on which its current
franchise was granted.  Smart operates international private leased circuits
under a provisional authority, which expired on November 6, 2006.  Smart
applied for an extension of this provisional authority or for the issuance of a
CPCN prior to its expiration.  The NTC has not yet acted on the motion.  Because
PLDT and Smart filed the applications for extension on a timely basis, we
expect that these extensions will be granted.  However, there can be no
assurance that the NTC will grant these extensions.  If a CPCN has not been
issued, the NTC may permit an operator to provide services pursuant to a
provisional authority.  Provisional authorities are typically granted for a
period of 18 months.  The Philippine Revised Administrative Code of 1987
provides that if the grantee of a license or permit, such as a CPCN or
provisional authority, has made timely and sufficient application for the
extension thereof, the existing CPCN or provisional authority will not expire
until the application is finally decided upon by the administrative agency
concerned.  However, there can be no assurance that our franchises, CPCNs and
provisional authorities will be renewed.  For a description of our licenses,
see Item 4. &#147;Information on the Company &#150;&#150; Licenses and Regulation.&#148;</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">The NTC also regulates the rates
we are permitted to charge for services that have not yet been deregulated,
such as local exchange services.  There can be no assurance that the NTC will
not impose additional obligations on us that could lead to the revocation of
our licenses if not adhered to and/or reduction in our total revenues or
profitability.  In addition, the NTC could adopt changes to the regulations
governing our interconnection with other telecommunications companies or the
rates and terms upon which we provide services to our customers that could have
a material and adverse effect on our results of operations.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
PLDT Group is also subject to a number of national and local taxes. &nbsp;On
May 24, 2005, the President of the Philippines signed into law Republic Act No.
9337, or R.A. 9337, amending certain sections of the National Internal Revenue
Code, which took effect on November 1, 2005.  R.A. 9337, among others,
introduced the following changes:</p>

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

<p style='margin-left:49.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The regular corporate income tax
rate for domestic corporations and resident/non-resident foreign corporations
increased from 32% to 35% effective November 1, 2005 and will be reduced to 30%
effective January 1, 2009.</p>

<p style='margin-left:49.5pt;text-indent:-13.5pt;line-height:
8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:49.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The VAT rate increased from 10% to
12% effective February 1, 2006.</p>

<p style='margin-left:49.5pt;text-indent:-13.5pt;line-height:
8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:49.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The input VAT on capital goods
should be spread evenly over the estimated useful life or sixty months,
whichever is shorter, if the acquisition cost, excluding the VAT component
thereof, exceeds one million pesos.</p>

<p style='text-indent:.5in;line-height:8.0pt' 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">There can be no assurance
that PLDT Group will not be subject to new and/or additional taxes and that
PLDT Group will be able to impose additional charges or fees to compensate for
the imposition of such taxes.  Furthermore, while the National Internal Revenue
Code provides that our regular income tax rate will be reduced to 30% effective
January 1, 2009, there can be no assurance whether or when such reduction in
the regular corporate income tax rate will be implemented.  </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">There
are also various bills pending in the Philippine Congress which propose to impose
a franchise tax on telecommunication companies and to tax telecommunications
services, among them, the imposition of a tax on mobile phone companies on all
text entries to text games; the imposition of a Php0.50 specific tax on each
SMS to be borne by the cellular phone companies; and the imposition of a 10% ad
valorem tax on all cellular phone calls using 3G.  We cannot assure that we would be able to impose additional charges
or fees to compensate for the imposition of such taxes.</p>

<p style='text-indent:.5in;line-height:6.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

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

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
June 16, 2000, the NTC issued Memorandum Circular No. 13-6-2000 proposing that
cellular operators, including Smart and Piltel, be required, among other
things:</p>

<p style='text-indent:.5in;line-height:6.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:left;
text-indent:-.25in;page-break-after:auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to bill their
subscribers for cellular calls on a six-second pulse basis instead of the
current per minute basis; </p>

<p style='text-indent:.5in;line-height:6.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
not to bill
calls directed to recorded voice messages; and </p>

<p style='text-indent:.5in;line-height:6.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to extend the
expiration date of prepaid cards from the current two months to two years.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Along
with the other Philippine cellular operators, Smart filed a complaint for the nullification
of this memorandum circular before the regional trial court of Quezon City and sought
for the issuance of a preliminary injunction while proceedings are ongoing.
The regional trial court issued the preliminary injunction, which restrained the
implementation of the memorandum circular.  The complaint of the Philippine
cellular operators is being heard by the regional trial court of Quezon City.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
December 2005, the NTC issued a consultative document on the development of
competition policy framework for the information communications sector.  The
consultative paper contains eleven questions which cover the following key
areas:</p>

<p style='text-indent:.5in;line-height:6.0pt' 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;
a review of market trends deemed to impinge on current and future
state of competition in the sector;</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
an exploration of major policies that may change the balance of
market power, hence the nature and degree of competition;</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
an assessment of the quality of current regulation, identifying
major handicaps of the NTC; and</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
a discussion of the urgent tasks for the NTC to effectively
govern a dynamic and complex industry.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">The NTC invited
public comment from industry stakeholders and other interested parties in
relation to the issues raised in the paper.  On January 31, 2006, we submitted
a comprehensive response to the consultative paper.&nbsp;  On August 24, 2006,
the NTC issued another consultative document specifically focusing on its
proposal to impose asymmetric regulations on carriers with significant market
power, or SMP, including a discussion on its proposed roadmap for implementing
such SMP obligations.  On October 23, 2006, we submitted our response to the
second consultative paper to the NTC.   </p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">In formulating
both our responses, we took into account both industry interests and the
broader context of our nation&#146;s economic development, drawing on the experience
in other countries.  We believe that the basis for the need for regulatory
reform is unclear and the envisioned SMP regime is inappropriate for the Philippines, as the market is highly competitive and well-functioning.  In addition, the
imposition of SMP and its attendant obligations would discourage capital
investments in a sector on which the Philippine economy is highly dependent.  We
have therefore proposed that the NTC explore its full range of options available
on a cost-benefit basis, taking into consideration the specific local context
of the Philippine marketplace.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">There
can be no assurance that the NTC will not impose changes to the current
regulatory framework which may lead to increased competition.  Any such changes
may have an adverse effect on our business, results of operations and
prospects.</p>

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

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

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Our
business requires the regular installation of new, and the maintenance of
existing, telecommunications transmission and other facilities and equipment,
which are being undertaken.  The installation and maintenance of these
facilities and equipment are subject to risks and uncertainties relating to:</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
shortages of
equipment, materials and labor;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
work stoppages
and labor disputes;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
interruptions
resulting from inclement weather and other natural disasters;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
unforeseen
engineering, environmental and geological problems; and</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
unanticipated
cost increases.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Any
of these factors could give rise to delays or cost overruns in the installation
of new facilities or equipment or could prevent us from properly maintaining
the equipment used in our networks, and could have a material and adverse
effect on our results of operations and financial condition.</p>

<p style='page-break-after:avoid !msorm' 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>Failure to maintain effective internal control over financial reporting
in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 could
adversely impact investor confidence and the market price of our common shares
and ADSs </i></p>

<p style='text-indent:24.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Effective
internal controls over financial reporting are necessary for us to provide
reasonable assurance with respect to our financial reports and to effectively
prevent fraud.  If we are unable to provide reasonable assurance with respect
to our financial reports and effectively prevent fraud, our reputation and
results of operations could be harmed.  </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
are required to comply with various Philippine and U.S. laws and regulations on
internal controls.  For example, pursuant to Section 404 of the Sarbanes-Oxley
Act of 2002, beginning with the Annual Report on <br>
Form 20-F for the fiscal year ended December 31, 2006, we have been required to
include a report by our management on our internal control over financial
reporting in our Annual Reports on Form 20-F that contains an assessment by our
management of the effectiveness of our internal control over financial
reporting.   In addition, our independent registered public accounting firm
must express an opinion on our internal control over financial reporting based
on their audit.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Internal
control over financial reporting may not prevent or detect misstatements because
of its inherent limitations, including the possibility of human error, the
circumvention or overriding of controls, or fraud.  Therefore, even effective
internal control over financial reporting can provide only reasonable assurance
with respect to the preparation and fair presentation of financial statements.
If we fail to maintain the adequacy of our internal control over financial
reporting, including through a failure to implement required new or improved
controls, or if we experience difficulties in their implementation, our
business and operating results could be harmed, we could fail to meet our
reporting obligations and there could be a material adverse effect on the
market prices of our common shares and ADSs.</p>

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

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

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>PLDT&#146;s business may be affected by political or social or economic
instability in the Philippines</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The Philippines is subject to political, social and economic volatility that, directly or
indirectly, may have a material adverse impact on our ability to sustain our
business and growth.  </p>

<p style='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
example, on May 10, 2004, the Philippines held a presidential election which
resulted in a victory by the incumbent President Gloria Macapagal-Arroyo who
successfully retained her post.  Shortly after the elections, allegations of
irregularities in the presidential elections, such as stolen ballots, vote
buying and attempts to improperly influence the vote count, intensified and led
to impeachment complaints against President Arroyo, which were subsequently
dismissed.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Additionally,
the Philippines have experienced various street protests and violent civil
unrest, including coup d&#146;etat attempts against the administration of President
Arroyo.  For example, recent such events include the storming by armed rebel
soldiers on November 29, 2007 of a luxury hotel in Makati City, Philippines, occupying part of the hotel and demanding that President Arroyo step down, and the
declaration by President Arroyo of a state of emergency from February 24, 2006
to March 3, 2006.  </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">Furthermore, the Philippine
economy has experienced periods of slow growth, high inflation and significant
devaluation of the peso.  The Philippine government is also facing a fiscal
deficit that the government is aiming to eliminate by 2008 by implementing a
number of economic reforms.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;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
fiscal deficit position of the Philippine government and the ongoing political
uncertainty have resulted in increased concerns about the political and
economic stability of the country.  There can be no assurance that the
political environment in the Philippines will be stable or that the current or
any future government will adopt economic policies conducive to sustained
economic growth or which do not impact adversely on the current regulatory
environment for telecommunications or other companies.  </p>

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

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

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

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

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

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

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

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

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

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">There
can be no assurance that foreign exchange controls will not be imposed in the
future.  If imposed, these restrictions could materially and adversely affect
our ability to obtain foreign currency to service our foreign currency
obligations.</p>

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The Philippines has experienced a number of major natural catastrophes over the years including
typhoons, volcanic eruptions and earthquakes that may materially disrupt and
adversely affect our business operations.  The earthquake that hit Taiwan in December 26, 2006 severed cable systems linking the Philippines to other Asian and
American countries, causing major slowdown of voice and non-voice data traffic
exchange.  There can be no assurance that the insurance coverage PLDT maintains
for these risks will adequately compensate it for all damages and economic
losses resulting from natural catastrophes.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><a name="_Toc170286142"></a><a
name="_Toc75779196"></a><a name="_Toc46082255"></a><a
name="_Item_4._Information_on the Company"></a>Item 4.       Information on the Company</h2>

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

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286143"></a><a name="_Toc75779197"></a><a
name="_Toc46082256"></a><a name="_Overview"></a><b>Overview</b></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
are the leading national telecommunications service provider in the Philippines.  Through our three principal business groups &#151; wireless, fixed line, and
information and communications technology &#151; we offer a wide range of
telecommunications services to approximately 32 million subscribers in the
Philippines across the nation's most extensive fiber optic backbone and fixed
line, cellular and satellite networks.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
are the leading fixed line service provider in the Philippines with
approximately 59% of the total reported fixed line subscribers nationwide as at
December 31, 2007.  Smart, our wholly-owned subsidiary, is the leading cellular
service provider in the country, with approximately 37% of total reported
cellular subscribers as at December 31, 2007.  Piltel, Smart&#146;s 92.1%-owned
subsidiary, had approximately 18% of total reported cellular subscribers as at December
31, 2007.  We have interests in the information and communications technology
sectors, including the operation of our <i>Vitro</i>TM data center, customer
interaction services, formerly referred to as call center business, and knowledge
processing solutions business, formerly referred to as business process
outsourcing.</p>

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

<p style="margin-top:0;margin-bottom:0">Our common shares are listed and
traded on the Philippine Stock Exchange, or PSE, and our American Depositary
Shares, or ADSs, evidenced by American Depositary Receipts, or ADRs, are listed
and traded on the New York Stock Exchange in the United States.  </p>

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

<p style="margin-top:0;margin-bottom:0">We had a market capitalization of
approximately Php547,841 million (US$13,541 million) as at February 29, 2008,
representing one of the largest market capitalizations among Philippine-listed
companies.  For the year ended December 31, 2007, we had total revenues of Php151,862
million (US$3,667 million). </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
principal executive offices are located at the Ramon Cojuangco Building, Makati
Avenue, Makati City, Philippines and our telephone number is +(632) 816-8534.
Our website address is <i>www.pldt.com.ph</i>.  The contents of our website are
not a part of this annual report.</p>

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

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286144"></a><a name="_Toc75779198"></a><a
name="_Toc46082257"></a><a name="_Historical_Background_and_Developme"></a><b>Historical Background and Development</b></p>

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

<p style="margin-top:0;margin-bottom:0"><a name="OLE_LINK7"></a><a name="OLE_LINK6">PLDT was incorporated under the old Corporation Law of
the </a>Philippines (Act 1459, as amended) on November 28, 1928,
following the merger of four telephone companies under common U.S. ownership.  In 1967, effective control of PLDT was sold by the General Telephone and
Electronics Corporation, then a major shareholder since PLDT'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.  In 1998, the First
Pacific Group acquired a significant interest in PLDT.  On March 24, 2000, NTT
Communications, through its wholly-owned subsidiary NTT Communications Capital
(U.K.) Limited, or NTTC-UK, became PLDT&#146;s strategic partner with approximately
14% economic and voting interest in the issued and outstanding common stock of
PLDT.  Simultaneous with NTT Communications&#146; investment in PLDT, we acquired
100% of Smart.  On March 14, 2006, NTT DoCoMo acquired from NTT Communications approximately
7% of PLDT&#146;s then outstanding common shares held by NTT Communications with NTT
Communications retaining ownership of approximately 7% of PLDT&#146;s common
shares.  Since March 14, 2006, NTT DoCoMo has made additional purchases of
shares of PLDT&#146;s common stock and together with NTT Communications beneficially
owned 20.86% of the outstanding shares of PLDT&#146;s common stock as at February 29,
2008.  On February 28, 2007, Metro Pacific Asset Holdings, Inc., a Philippine
affiliate of First Pacific, completed the acquisition of an additional interest
of approximately 46% in PTIC.  This additional investment in PTIC, a shareholder
of PLDT, represents an attributable interest of approximately 6.4% of the then issued
common shares of PLDT and thereby raised the First Pacific Group&#146;s beneficial
ownership to approximately 28% of PLDT&#146;s shares of common stock as at that date.
First Pacific Group had beneficial ownership of approximately 26.17% in PLDT&#146;s
outstanding common stock as at February 29, 2008.  See Item 7. &#147;Major
Shareholders and Related Party Transactions&#148; for further discussion.</p>

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

<p style="margin-top:0;margin-bottom:0">PLDT's original
franchise was granted in 1928 and was last amended in 1991, extending its
effectiveness until 2028 and broadening PLDT&#146;s franchise to permit PLDT to
provide virtually every type of telecommunications service.  PLDT&#146;s franchise
covers the business of providing basic and enhanced telecommunications services
in and between the provinces, cities and municipalities in the Philippines and
between the Philippines and other countries and territories including mobile,
cellular, wired or wireless telecommunications system, fiber optics, multi-channel
transmission distribution systems and their value-added services such as but
not limited to transmission of voice, data, facsimile, control signals, audio
and video, information services bureau and all other telecommunications systems
technologies, as are at present available or can be made available through
technical advances or innovations in the future.  See Item 8. &#147;Financial
Information &#150;&#150; Legal Proceedings &#151; Quo Warranto Action&#148; for information
regarding legal proceedings initiated by the Solicitor General with respect to
PLDT's franchise.</p>

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

<p style="margin-top:0;margin-bottom:0">Our consolidated capital
expenditures amounted to Php24,824 million and Php20,674 million in 2007 and 2006,
respectively.  Of these amounts, Php9,912 million and Php8,902 million were
attributable to PLDT in 2007 and 2006, respectively, while Php14,179 million
and Php10,506 million were spent by Smart in 2007 and 2006, respectively.  The
remaining balances were spent by our other subsidiaries, principally ePLDT and
its subsidiaries.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286145"></a><a
name="_Toc75779199"></a><a name="_Toc46082258"></a><a name="_Organization"></a><b>Organization</b></p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT Group includes the following significant
subsidiaries as at February 29, 2008:</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:97.02%;margin-left:.25in;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;margin-right:0in;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.5pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;margin-right:0in;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Place of
 Incorporation </b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;margin-right:0in;
 margin-bottom:0in;margin-left:1.45pt;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=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.5pt;border-right:none;
 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>Percentage of
 Ownership</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 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"><b>Name of Subsidiary</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;margin-right:0in;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Principal Activity</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 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"><b>Direct</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.5pt;border-right:none;
 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>Indirect</b></p>
 </td>
 </tr>
 <tr style='height:5.0pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:5.0pt'>
 <p style='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:5.0pt'>
 <p style='margin-left:1.45pt;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:5.0pt'>
 <p style='margin-left:1.45pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:5.0pt'>
 <p align=right style='margin-right:.1in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>

 <tr style='height:16.2pt'>
 <td   colspan=5 valign=bottom style=' padding:0in 0in 0in 0in;
 height:16.2pt'>
 <p style='margin-top:1.0pt;margin-right:.1in;margin-bottom:
 1.0pt;margin-left:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Wireless</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;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=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' 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:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;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:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart Braodband Inc., or SBI</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Internet broadband distribution</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smartconnect
 Holdings Pte. Ltd., or SCH</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Singapore</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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">International trade of satellites and global
 system mobile, or GSM, telecommunications</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">I-Contacts
 Corporation, or I-Contacts</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Customer interaction services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Wolfpac
 Mobile, Inc., or Wolfpac </p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Mobile applications development and services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smartconnect
 Global Pte. Ltd., or SGP</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Singapore</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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">International trade of satellites and GSM
 telecommunications</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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:27.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3rd Brand Pte. Ltd., or 3rd Brand</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Singapore</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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Solutions and systems integration services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">85.0</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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Wireless
 Card, Inc., or WCI</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Promotion of sale and/or patronage of debit
 and/or charge cards</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart
 Hub, Incorporated, or SHI</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Development and sale of software, maintenance
 and support services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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:27.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Pilipino Telephone Corporation, or Piltel</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cellular and fixed line services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Telesat, Inc., or Telesat</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Philippines</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;page-break-after:avoid' 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:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;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 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.25in;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">ACeS Philippines Cellular Satellite <br>
 Corporation, or ACeS Philippines</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Satellite information and messaging services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">88.5</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">11.5</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 align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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 communications services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">67.0</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:8.1pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <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:8.1pt'>
 <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:8.1pt'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:0in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:0in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:16.2pt'>
 <td   colspan=5 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>Fixed Line</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 ClarkTel</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Telecommunications services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-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
 Subic Telecom, Inc., or SubicTel</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Telecommunications
 services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-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 PLDT Global</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">British Virgin Islands</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:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-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 align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">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:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-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 align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</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:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">97.5</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-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, <br>
 or BCC</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Telecommunications,
 infrastructure <br>
 and related value-added services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">75.0</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</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=top 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 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=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:0in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:0in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:16.2pt'>
 <td   colspan=5 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>Information and
 Communications Technology, or ICT</b></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">ePLDT,
 Inc., or ePLDT</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</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">Information
 and communications infrastructure for Internet-based services, e-commerce, cusomter
 interaction service and IT-related services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">SPi
 Technologies, Inc., or SPi, and subsidiaries, <br>
 or SPi Group</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Knowledge
 processing solutions</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 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:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">ePLDT
 Ventus, Inc., or Ventus</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Customer
 interaction services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 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:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Vocativ
 Systems, Inc., or Vocativ</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Customer
 interaction services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 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:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Parlance
 Systems, Inc., or Parlance</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Customer
 interaction services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 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:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Infocom
 Technologies, Inc., or Infocom</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Internet
 access services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">99.6</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:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">netGames,
 Inc., or netGames</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Publisher
 of online games</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">80.0</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:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Digital
 Paradise, Inc., or Digital Paradise</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Internet
 access services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">75.0</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:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Level
 Up! (Philippines), Inc., or Level Up!</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Publisher
 of online games</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">60.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Airborne
 Access Corporation, or <br>
 Airborne Access</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.5pt;
 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">Wireless
 internet services</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">51.0</p>
 </td>
 </tr>
</table></center></div>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:.25in;
line-height:normal' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in;
line-height:normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Level Up!, SPi and CyMed were all acquired in 2006 and their financial
results have been included in our consolidated financial statements since February,
July and August 2006, respectively.  On April 12, 2007, SPi acquired a 100%
equity interest in Springfield Service Corporation, or Springfield, a company
engaged in the medical billing and revenue cycle management market in the United States.  The financial results of Springfield have been included in our 2007
consolidated financial statements since April 2007.  See <i>Note 11 &#150; Goodwill
and Intangible Assets </i>to the accompanying audited consolidated financial
statements in Item 18 for further discussion regarding these and other
acquisitions.</p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:.25in;
line-height:normal' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
provide cellular and wireless broadband, satellite and other services through our
wireless business, which contributed about 95% and 5% of our wireless service
revenues, respectively, in 2007.  The rapid growth in the cellular market has
resulted in a change in our revenue composition and sources of our revenue
growth.  Starting with 2003, cellular service has become our major revenue
source surpassing fixed line revenues.  Cellular data services, which include
all text messaging and text-related services ranging from ordinary text to
value-added services, contributed significantly to our revenue increase.  Our total
wireless revenues accounted for 62% and 60% of our total consolidated revenues
for the years ended December 31, 2007 and 2006, respectively.  For the years
ended December 31, 2007 and 2006, cellular service revenues accounted for 88%
and 90%, respectively, of our total wireless revenues </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
provide cellular services (including handset sales), through Smart and Piltel.
Smart is the leading cellular service provider in the Philippines, with 20,339,204 subscribers as at December 31, 2007, representing a market share of
approximately 37%.  Piltel, a reseller of Smart's GSM service with its own
branding, had 9,701,826 subscribers as at December 31, 2007, representing an
estimated market share of 18%.  In 2007, the combined number of Smart's and
Piltel's subscribers increased by 5,865,646, or 24%, to 30,041,030 primarily
due to &#147;multiple SIM card ownership&#148;, in which
subscribers avail of our services in addition to having subscriber arrangements
with other wireless operators, and our continued expansion in the lower income
segment <a name="_DV_M758"></a>of the Philippine wireless market, which overall
resulted in a decrease in our average revenue per user, or ARPU.  As at
December 31, 2007, cellular penetration in the Philippines reached over 60%, or
over 18 times the country's fixed line penetration, although the existence of
subscribers owning multiple SIM cards has likely overstated this penetration
rate to a certain extent.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Smart's
and Piltel's cellular subscriber gains were predominantly attributable to their
respective prepaid services.  Approximately 99% of Smart&#146;s and all of Piltel&#146;s cellular
subscribers as at December 31, 2007 were prepaid service subscribers.  The
predominance of prepaid service reflects one of the distinguishing
characteristics of the Philippine cellular market.  The growth in our prepaid
service has enabled us to increase and broaden our subscriber base rapidly
while controlling credit risk and reducing billing and administrative costs on
a per-subscriber basis.  </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Our
cellular subscriber growth has also been driven by text messaging.  Text
messaging is extremely popular in the Philippines, particularly on the prepaid
platform, as it provides a convenient and inexpensive alternative to voice and
e-mail based communications.  Text messaging contributed significantly to
Smart's cellular data service revenue growth in 2007, generating revenues of
Php41,265 million, an increase of Php6,616 million, or 19%, over 2006.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Smart's
Nokia-provided cellular network is the most extensive in the Philippines, covering substantially all of Metro Manila and most of the other major population
centers in the Philippines.  Its dual-band GSM network allows it to efficiently
deploy high capacity 1800 MHz base transceiver stations, or BTS, in dense urban
areas while its 900 MHz BTS can be much more economically deployed in
potentially high growth, but less densely populated provincial areas.  We have
rolled out a 3G network based on a W-CDMA technology and currently upgrading
our wireless broadband facilities.  With 7,825 GSM base stations as at the end
of December 2007, Smart&#146;s cellular network covers approximately 99% of all
towns and municipalities in the Philippines, accounting for approximately 99%
of the population.</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"><b><i>Fixed Line</i></b></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
are the leading provider in the Philippines of fixed line telecommunications
services throughout the country.  Our fixed line business group offers local
exchange, international long distance, national long distance, data and other
network and miscellaneous services.  We had 1,724,702 fixed line subscribers as
at December 31, 2007.  Total revenues from our fixed line services accounted
for 37% and 41% of our total revenues for the years ended December 31, 2007 and
2006, respectively.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
6,400-kilometer long domestic fiber optic network, or DFON, is supported by an
extensive digital microwave backbone.  Our fixed line network reaches all of
the major cities and municipalities in the Philippines, with a concentration in
the Metropolitan Manila area.  Our network offers the country's most extensive
connections to international networks through three international gateway
switching exchanges, satellite systems and various regional submarine cable
systems in which we have interests.  We are currently upgrading our fixed line
facilities to NGN as well as expanding our DSL broadband facilities.</p>

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Through
our wholly-owned subsidiary, ePLDT, we provide broad-based integrated
information and communications technology, or ICT, services focusing on
infrastructure and solutions for internet applications, internet protocol-based
solutions and multimedia content delivery.  ePLDT's principal activities are
the operation of an internet data center under the brand name <i>Vitro&#153;</i>, customer
interaction services, knowledge processing solutions, and internet and online gaming
business.  Total revenues from our ICT services accounted for 7% and 5% of our total
revenues for the years ended December 31, 2007 and 2006, respectively.</p>

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

<p style="margin-top:0;margin-bottom:0"><a name="OLE_LINK20"></a><a name="OLE_LINK19"></a><a
name="_Toc170286146"></a><a name="_Toc75779200"></a><a name="_Toc46082259"></a><a
name="_Strengths"></a><b>Strengths</b></p>

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

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

<p style='line-height:7.0pt' 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>Recognized Brands</i>.  PLDT and Smart are strong and widely recognized brand
names in the Philippines.  We have built the PLDT brand name for 80 years as
the leading telecommunications provider in the Philippines.  Smart is
recognized in the Philippines as an innovative provider of high-quality
cellular services.  Piltel's <i>Talk &#145;N Text</i> brand, which is provided using
Smart&#146;s network, has also gained significant recognition.</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Leading Market Shares</i>.  With approximately 32 million fixed line and
cellular subscribers as at December 31, 2007, we have the leading market
positions in both the fixed line and cellular markets in the Philippines.  </p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Diversified Revenue Sources</i>.  As a result of the continued growth of cellular
service in the country, approximately 62% of our total consolidated revenues in
2007 were derived from our wireless business segment.  Fixed line revenues,
which represented 37% and 41% of our total revenues in 2007 and 2006,
respectively, have declined over the past years as pressures on traditional
fixed line voice revenues, resulting from decreases in our local exchange,
international long distance and national long distance services.  We continue
to identify and develop new revenue sources from our cellular, fixed line and
ICT businesses.</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Advanced Integrated Network</i>.  With one of the most advanced and extensive telecommunications
networks in the Philippines, we are able to offer a wide array of
communications services.  We are enhancing the capabilities of our fixed line
and wireless networks to allow us to better exploit this competitive strength
and achieve higher levels of network efficiency in providing voice and data
services.  In addition, we continue our roll out of 3G and wireless broadband and
our upgrade to NGN in order to increase broadband subscribers, and expand our
data/broadband capabilities.</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Innovative Products and
Services</i>.  We have successfully
introduced a number of innovative and award-winning cellular products and
services, including <i>Smart Money</i>, <i>Smart Load </i>and<i> Pasa Load.</i>
<i>Smart Load</i> is an &#147;over-the-air&#148; electronic loading facility designed to
make reloading of air time credits more convenient for, and accessible to
consumers.  <i>Pasa Load </i>(the term &#147;pasa&#148; means &#147;transfer&#148; in the
vernacular), a derivative service of <i>Smart Load</i> that allows load
transfers to other <i>Smart Buddy</i> and <i>Talk &#145;N Text </i>subscribers.</p>

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

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

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286147"></a><a
name="_Toc75779201"></a><a name="_Toc46082260"></a><a name="_Strategy"></a><b>Strategy</b></p>

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

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

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Build on our leading positions
in the fixed line and wireless businesses</i>.  We plan to build on our position as the leading provider of fixed
line service in the Philippines by continuing to launch new products and
services to increase subscriber value and utilization of our existing
facilities and equipment at reduced cost.  We plan to build on our position as
the leading wireless service provider in the Philippines by continuing to
introduce new products and services to increase our subscribers' use of our
network for both voice and data, as well as their reliance on our services.  We
are currently upgrading our fixed line facilities to NGN, and have rolled out a
3G network based on a W-CDMA technology and are expanding our DSL and wireless
broadband facilities.  Our operating target is to continue growth in
profitability by increasing our revenues while controlling our costs.</p>

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

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

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

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

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><a
name="OLE_LINK16"></a><a name="OLE_LINK15">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Maintain a strong financial
position and improve shareholder returns.  </i></a>In recent years,<i> </i>we have significantly improved
our financial position by utilizing our cash flows principally for debt
reduction.  As the cash flows generated by our businesses have increased and
our leverage ratios have improved, we were able to restore the payment of cash dividends
to our common shareholders beginning 2005.  Our debt decreased to US$1.6
billion as at December 31, 2007 and we paid dividends on common shares aggregating
Php28,167 million in 2007.  As a result of our strong cash flows and reduced debt
levels, we have increased our regular cash dividend payout ratio to 70% of our 2007
earnings per share from 60% in 2006 and 40% in 2005.  Further to our regular cash
dividend payments and after having determined that we have capacity to pay
additional returns to shareholders, we paid special cash dividends which
effectively increased our dividend pay-out ratio to close to 100% of our 2007
earnings per share and 85% of our 2006 earnings per share.&nbsp;  We expect
that a greater proportion of our free cash flows in succeeding years will be
utilized for the payment of cash dividends to common shareholders and
investments in new growth areas while continuing to maintain a healthy balance
sheet position.  As part of our growth strategy, we made and may continue to
make acquisitions and investments in companies or businesses.  We will continue
to consider value-accretive investments in related businesses such as those in
the global outsourcing and off-shoring industry.</p>

<p style='line-height:8.0pt' 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="_Toc170286148"></a><a
name="_Business"></a><b>Business</b></p>

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

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

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

<p style="margin-top:0;margin-bottom:0">We provide cellular, wireless
broadband, satellite and other services through our wireless business segment.
</p>

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

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

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
cellular business, which we provide through Smart and Piltel to over 30 million
subscribers, approximately 99% of whom are prepaid subscribers, is focused on
providing wireless voice communications, wireless data communications
(primarily through text messaging) and a variety of other value-added services,
which includes (a) <i>Mobile Banking</i> (banking services delivered over the cellular
network); (b) specialized content such as ringtones, logos, caller ringback
tunes; (c) <i>Smart Money</i>; (d) international roaming; and (e) games and
other VAS developed on Smart&#146;s platform.  Smart services approximately ten million
subscribers of Piltel on its GSM network through a facilities service agreement
with Piltel, under the brand name <i>Talk &#145;N Text</i>.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
following table summarizes key measures of Smart&#146;s and Piltel&#146;s cellular
business as at and for the years ended December 31, 2007, 2006 and 2005:</p>

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

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

 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Years Ended
 December 31,</b></p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2005</b>(2)</p>
 </div>
 </td>
 </tr>

 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Systemwide cellular subscriber base</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30,041,030</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24,175,384</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20,408,621</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20,339,204</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,201,005</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15,424,196</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:22.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Prepaid</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">19,997,324</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,882,442</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15,144,118</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:22.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Postpaid</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">341,880</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">318,563</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">280,078</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Piltel(1)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,701,826</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,974,379</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,984,425</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Growth rate of cellular subscribers</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24%</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18%</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6%</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6%</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Piltel(1)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">39%</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">40%</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8%</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cellular revenues (in millions)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php85,134</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php77,627</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Service</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cellular services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">82,334</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">75,617</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Non-service</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Cellular handset sales </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,800</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,010</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style="margin-top:0;margin-bottom:0">Percentage of cellular
 revenues to total service revenues </p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">59%</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">58%</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Percentage of cellular
 revenues to total wireless service revenues</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">98%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">99%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
</table></center></div>

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

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

<p style='margin-top:0in;margin-right:0in;margin-bottom:
0in;margin-left:20.25pt;margin-bottom:.0001pt;text-indent:-20.25pt' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Represents Talk &#145;N Text, a
prepaid service provided by Piltel using Smart&#146;s network. Piltel&#146;s revenue is
net of service fees payable to Smart for using Smart&#146;s network.  Piltel does not
offer postpaid service.</i></p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:
0in;line-height:2.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:
0in;margin-left:20.25pt;margin-bottom:.0001pt;text-indent:-20.25pt' style="margin-top:0;margin-bottom:0"><i>(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Pursuant to the transitional
relief granted by the U.S. SEC in respect of the first-time adoption of IFRS,
we have omitted revenue data for 2005.  Please see &#147;Presentation of Financial
Information&#148; above for further details.</i></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>Service
Plans</i>.  Smart markets nationwide cellular communications services under the
brand names <i>Smart Buddy, Smart Gold </i>and <i>Smart Infinity.  Smart Buddy </i>is
a prepaid service while<i> Smart Gold </i>and <i>Smart Infinity</i> are
postpaid services, which are all provided through Smart&#146;s digital network.  Piltel
markets its cellular prepaid service under the brand name <i>Talk &#145;N Text, </i>which
is also provided through Smart&#146;s network.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Since
2006, Smart and Piltel have focused on segmenting the market by offering
sector-specific, value-driven packages for its prepaid subscribers.  These
include new varieties of our top-up service which provide a fixed number of
messages with prescribed validity periods and call packages which allow a fixed
number of calls of preset duration.  Starting out as purely on-network
packages, Smart&#146;s and Piltel&#146;s top-up services now offer text message bundles
available to all networks.  Smart also continues to offer <i>Smart 258</i>,
a registration-based service which offers unlimited on-network text messaging
in various load denominations with designated expiration periods.  </p>

<p style='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
also has a roster of 3G services which it commercially launched in May 2006.
These services include video calling, video streaming, high-speed internet
browsing and downloading of special 3G content, offered at rates similar to
those of 2G services.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Voice
Services.  </i>Cellular voice services
comprise all voice traffic as well as voice value-added services such as voice
mail and international roaming.  Voice
services remains a significant contributor to wireless revenues, generating a
total of Php36,105 million, or 44%, and Php35,221
million, or 47%, of cellular service revenues in 2007 and 2006, respectively.
Local calls continue to dominate outbound traffic with 67% of all outbound minutes
originating from our cellular service.  In 2007, traffic volumes from local
calls totaled 3,728 million minutes compared to 3,362 million minutes in 2006.
National long distance traffic volumes for 2007 totaled 70 million minutes
compared to 73 million minutes in 2006.  Outbound international long distance
remained at 2% of total outbound traffic with 201 million minutes and 165
million minutes generated in 2007 and 2006, respectively.  The ratio of
inbound-to-outbound international long distance minutes was 11.7:1 for 2007,
compared to 12.5:1 in 2006.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Data
Services</i>.  Cellular revenues from data services include all text
messaging-related services and other data value-added services.  The Philippines cellular market is one of the most text messaging-intensive markets in the
world, totaling more than a billion text messages per day.  Text messaging is
extremely popular in the Philippines, particularly on the prepaid platform, as
it provides a convenient and inexpensive alternative to voice and e-mail based
communications.  Text messaging also utilizes less network capacity than voice,
thereby increasing network efficiency.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
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">Text
messaging has been one of the key drivers for our cellular subscriber growth.  Strong volume growth in text messaging contributed
significantly to Smart's cellular revenue growth in 2007, generating revenues
of Php41,265 million, an increase of Php6,616 million, or 19%, over 2006.  In 2007,
Smart and Piltel's text messaging systems handled over 25,289 million outbound
messages&nbsp;on standard SMS services with another 187,420 million messages generated
by the bucket-priced text services.  This compares to 32,065 million outbound
messages on standard SMS services in 2006 and 203,669 million outbound messages
generated through bucket-priced text service.  Unlimited SMS services were only
made available in March 2005.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
launch from time to time various promotions to stimulate usage and subscriber
growth.  For example, in 2005, Smart launched a series of promotions to test
the market demand for fixed rate or &#147;bucket&#148; plans for voice and text.  In
2006, Smart introduced low-denomination text packages which were further
refined in 2007 as Smart focused on further segmenting its market by offering
sector-specific, value-driven packages.  As a result, Smart continued to
successfully defend its market leadership through innovative voice and text
packages that drive activations, boost usage and strengthen brand equity.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
success of text messaging is a strong indicator of future data usage potential
in this market.  In 2007, approximately 54% of Smart&#146;s cellular revenues were
derived from data usage, compared to 51% in 2006.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Smart
also offers the following value-added cellular services:</p>

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

<p style='margin-left:49.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Mobile Banking</i>, launched in collaboration with various banks, allows
subscribers to execute banking transactions such as balance inquiries and
transfers over their mobile telephones; </p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:49.5pt;margin-bottom:.0001pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:49.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Smart Money, </i>launched in conjunction with MasterCard, enables
subscribers to pay for their purchases by transferring money from their bank
accounts to their Smart Money cards as well as reload their prepaid cards
electronically; and</p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:49.5pt;margin-bottom:.0001pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:49.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Smart Padala</i>, one of the many innovative initiatives from our <i>Smart
Money</i> platform, 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-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Consistent
with Smart&#146;s objective to develop new businesses, Smart introduced in 2006 a
&#147;fixed wireless&#148; broadband service under the brand <i>SmartBro</i> to
complement PLDT&#146;s DSL in areas that are currently not covered by the fixed line
network.  <i>SmartBro </i>is rapidly increasing network coverage in order to
retain &#147;first mover&#148; advantage in areas with limited or no fixed line or
broadband coverage.  <i>SmartBro</i> is also pioneering a shared access model
in order to propagate broadband and address affordability barriers.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Due
to the high level of text messaging service usage, we believe that the
Philippine market is well suited for text-based informational and e-commerce
services.  Our current approach is to continue maximizing our GSM, or 2G,
services while upgrading our network to 3G evolution technology.  On December
29, 2005, Smart was awarded a 3G license by the NTC after being ranked highest
by the NTC in garnering a perfect score on a 30-point grading system designed
to gauge the capability of telecommunication operators to effectively provide
extensive 3G services.  As a result of the perfect ranking, Smart received the
largest radio frequency allocation of 15 MHz as well as first choice of
frequency spectrum.  Smart chose the 1920-1935 MHz and 2110-2125 MHz spectrum,
the range that would best enable it to rapidly deploy its 3G network nationwide
and at the same time offer the highest quality of 3G service.</p>

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a
name="OLE_LINK14"></a><a name="OLE_LINK13"><i>Rates
and Discounts</i></a></p>

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

<p style="margin-top:0;margin-bottom:0">Our current policy is to
recognize a prepaid subscriber as &#147;active&#148; only when the subscriber activates
and uses the SIM card and reloads it at least once during the month of initial
activation or in the immediately succeeding month.  A prepaid cellular
subscriber is disconnected if the subscriber does not reload within four months
after the full usage or expiry of the last reload.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>Smart
Buddy</i> and <i>Talk &#145;N Text</i> Call and Text prepaid cards are sold in
denominations of Php300, Php500 and Php1,000, which include 33, 83 and 250 free
text messages, respectively.  We also recently introduced a Php100 denomination
that contains Php100 worth of air time with a validity period of 10 days.  While
the stored value of a prepaid card remains valid for a period from the time a
subscriber activates the card, as we launch from time to time promotions with
shorter validity periods.  The introduction of our &#147;over-the-air&#148; electronic
loading facility <i>Smart Load</i> in 2003 made reloading of air time credits
more convenient and accessible for consumers.  <i>Smart Load&#146;s</i> over-the-air
reloads have evolved to respond to market needs and now come in denominations
of Php15, Php30, Php50, Php60, Php115, Php200, Php300 and Php500 with
corresponding expiration periods.  </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>Smart
Load</i> was followed by <i>Pasa Load</i>, a derivative service, allowing
prepaid subscribers to transfer even smaller denominations to other prepaid
subscribers.  Our prepaid subscribers are charged between Php5.50 per minute and
Php6.50 per minute for calls within our wireless network and calls terminating
to other cellular or fixed line networks.  Voice tariffs on our various prepaid
voice packages range from a low of Php5.50 for four 15-second on-network calls
to Php20 for three 3-minute on-network calls, valid for one day.</p>

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

<p align=left style='margin-top:0in;text-align:left;
text-indent:.5in;line-height:normal' style="margin-top:0;margin-bottom:0">We
offer both flat rate, or regular, and consumable postpaid plans with monthly
service fees ranging from Php500 to Php3,500.  These plans are available with varying amounts of free air
time and text messages and different rates beyond the free minutes and text
messages, depending on the monthly service fee.  Monthly service fees for flat
rate, or regular, plans are applicable only to local calls and text messages
and for consumable plans to all voice calls, text messages (both local and
international) and value-added services.</p>

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

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

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

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

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Smart
also has in place various promotions to stimulate international usage.  In June
2006, <i>Smart IDD Libre Text Abroad</i> was launched wherein subscribers
earned one free international text message for every minute of IDD calling.  In
October 2006, this was replaced by <i>International Budget Text</i> packages.  These
packages, which have limited duration and varying number of included messages,
enable subscribers to send international text to pre-registered recipients of
the subscriber&#146;s choice on supported overseas carriers.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
sell our cellular services primarily through a network of independent dealers
and distributors that generally have their own retail networks, direct sales
forces and sub-dealers.  We currently have nine major dealers, two of which are
exclusive.  These dealers include major distributors of cellular handsets whose
main focus are telecommunications outlets.  Account managers from our sales force
manage the distribution network and regularly update these business partners on
upcoming marketing strategies, promotional campaigns and new products introductions.
With the introduction of <i>Smart Load</i> in May 2003, Smart moved into a new
realm of distribution.  These over-the-air reloads, which were based on the
&#147;sachet&#148; marketing concept of consumer goods such as shampoo and ketchup,
required a distribution network that approximates those of fast-moving consumer
goods companies.  Starting with just 50,000 outlets when it was launched, <i>Smart
Load</i>&#146;s distribution network now encompasses approximately one million
retail agents, 80% of which are micro businesses (e.g., neighborhood stores, individual
entrepreneurs, individual roving agents).  These micro-retailers must be
affiliated with any of Smart&#146;s authorized dealers, distributors, sub-dealers or
agents.  With the prepaid reloading distribution network now extended to corner
store and individual retailer levels and minimum reloading denominations as low
as Php10, Smart&#146;s prepaid service becomes even more affordable and accessible
to subscribers.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">For
prepaid services, we grant discounts to dealers for prepaid phone kits, air
time cards and over-the-air reloads sold.  Smart and Piltel compensate dealers with
Php800 in cash per prepaid phone kit sold.  An additional 1% discount based on
the suggested retail price is given on cash purchases.  Air time cards and
over-the-air reloads are sold to distributors at volume discounts determined by
the value of the cards purchased by the distributors.  Discounts given for air
time cards sold range from 8% to 8.4% while discounts on over-the-air reloads
range from 2.5% to 5%.  Air time cards cannot be returned or refunded and
normally expire within six to 12 months after release from the Smart warehouse.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Wireless Broadband, Satellite and Other Services</i></p>

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

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

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

<p style="margin-top:0;margin-bottom:0">We currently provide wireless
broadband, satellite and other services through SBI, our wireless broadband
provider, Wolfpac, our wireless content operator, Mabuhay Satellite and ACeS
Philippines.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Through
SBI, we are engaged in providing wireless broadband and data services to
residential consumers as well as small and medium-scale enterprises in the Philippines.  As at December 31, 2007, SBI had 301,738 wireless broadband subscribers under
the brand name <i>Smart Bro</i>.  <i>Smart Bro</i> aims to strengthen Smart&#146;s
position in the wireless data segment and complements PLDT&#146;s <i>myDSL</i>
service in areas where the latter is not available.   </p>

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

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:
..5in' style="margin-top:0;margin-bottom:0">Through Wolfpac, we are engaged in the
business of consumer mobile applications software development and consumer
mobile content development and other allied services.  </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>PLDT
WeRoam</i></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
also offer <i>PLDT WeRoam</i>, or <i>WeRoam</i>, a wireless prepaid or postpaid
broadband service, running on the PLDT Group&#146;s nationwide wireless network
(using GPRS, EDGE, WiFi and 3G/HSDPA technologies).
 </p>

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

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

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_DV_M4792"></a>Mabuhay Satellite is engaged in the control and
operation of the Agila II satellite.  Commencing commercial operations in
January 1998, Agila II is the Philippines' first communication satellite.
Mabuhay Satellite leases satellite space segments in both the C and Ku bands on
Agila II.  Through Agila II, Mabuhay Satellite also offers internet backbone
access, video and data broadcasting, and bandwidth-on-demand, facilitating
communication links between telecommunications, broadcast and other public
utility companies operating in the Asia-Pacific region.  In 2007, Mabuhay
Satellite generated revenues of Php976 million and posted a net income of Php121
million.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:8.0pt' style="margin-top:0;margin-bottom:0"><a name="_DV_M4799"></a><a name="_DV_M4801"></a><a
name="_DV_M4803"></a><a name="_DV_M4806"></a>&nbsp;</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
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">ACeS
 Philippines currently owns approximately 36.99% of AIL.  In 2007, ACeS
Philippines generated revenues of Php453 million and posted a net income of Php358
million.  AIL aims to develop and implement a satellite-based communications
system to provide services to users in the Asia-Pacific region through the
Garuda I satellite, or ACeS System and ACeS Service.  AIL has entered into
interconnection agreements and roaming service agreements with PLDT and other
major telecommunications operators that will allow ACeS service subscribers to
access GSM terrestrial cellular systems in addition to the ACeS system.
Further, AIL has an amended Air Time Purchase Agreement, or ATPA, with National
Service Providers in Asia, including PLDT.  For further discussion regarding
the ATPA, please see <i>Note 22 &#150; Related Party Transactions</i> to the
accompanying audited consolidated financial statements in Item 18.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">As
part of the consolidation process of the PLDT Group&#146;s wireless business, ACeS
Philippines&#146; operations is being managed by Smart.  This operational arrangement
effectively gives Smart the widest service coverage in the Philippines through the combination of the coverage of ACeS Philippines with Smart&#146;s
cellular service.</p>

<p style='margin-left:.5in;line-height:8.0pt' 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>Revenues</i></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Our
revenues from wireless broadband, satellite and other services consist of
wireless broadband service revenues for SBI, rental payments received for the
lease of Mabuhay Satellite&#146;s transponders&#146; charges for ACeS Philippines&#146;
satellite information and messaging services, service revenues generated from
PLDT Global&#146;s subsidiaries, and revenues generated from Wolfpac for wireless
data content.  </p>

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">SBI
offers its wireless broadband and data services for residential consumers as
well as small and medium-scale enterprises.  The wireless broadband service for
residential consumers is branded as <i>Smart Bro</i> and offers a maximum speed
of 384 kbps for Php999 per month.  Monthly service fees for corporate data
services range from Php999 to Php180,000 depending on the connection speed
requirements.  The monthly service fee for users of the <i>Smart Bro Plug-It</i>,
a new service introduced in November 2007, is Php799 and includes 40 hours per
month of free internet usage.  Users also incur a one-time charge for the <i>Smart
Bro Plug-It </i>modem of Php1,200.</p>

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

<p style="margin-top:0;margin-bottom:0">Wolfpac generates revenues from
SMS subscriptions, institutional services and downloadable contents.  The
subscription price for the SMS subscription and institutional services is
pegged at Php2.50 per SMS, while downloadable contents range from Php10.00 to
Php30.00.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>WeRoam</i>
postpaid offers several packages for its wireless broadband service that
include unlimited internet access with speeds ranging from 40 kbps to 1.8 Mbps
with monthly recurring fees of Php1,000 to Php1,700 depending on the type of
plan selected.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>WeRoam
</i>prepaid offers several packages that include the GPRS/EDGE card and an air
time value for three, six and 12 months with monthly subscription fees based on
an initial air time value ranging from Php10,860 to Php20,940.  Once the
initial air time value expires, continued use of the service requires <i>WeLoad</i>
or reloading of additional air time value with different denominations and
expiration periods.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Mabuhay
Satellite leases its transponders to third parties at average annual rates of
approximately US$0.9 million and approximately US$0.7 million for its C-band
and Ku-band transponders, respectively.  ACeS service mobile subscribers are
charged Php13.84 per minute for local and cell-to-cell calls and for national
direct dial services, while residential subscribers are charged peak-hour rates
of Php13.00 per minute and off-peak hour rates of Php8.00 per minute for
domestic calls regardless of destination.  For ACeS system public calling
offices, callers are charged Php4.50 and Php7.00 per minute for calls
terminating to fixed line and cellular networks, respectively.  Rates for
international long distance calls depend on the country of termination and
range from US$0.35 per minute for frequently called countries to US$0.85 per
minute for less frequently called countries.</p>

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

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779203"><b><i>Fixed
Line</i></b></a></p>

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

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

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
offer postpaid and prepaid fixed line services.  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 strategy.  PLDT has
consolidated its prepaid fixed line service into <i>TelePwede</i>,<i> </i>which
is funded by e-loads (available at Smart or PLDT e-load retailers).  In March
2007, PLDT launched PLDT Landline Plus, a postpaid and prepaid fixed wireless
service where subscribers to the service benefit from a text-capable home
phone.  This service is primarily intended for subscribers in areas where PLDT
has no facilities and is expected to increase our fixed line subscriber base.  </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-top:0;margin-bottom:0"><i>Local Exchange Service</i></p>

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

<p style="margin-top:0;margin-bottom:0">Our local exchange service, which
consists of our basic voice telephony business, is provided primarily through
PLDT.  We also provide local exchange
services through our subsidiaries ClarkTel, SubicTel, Maratel and Piltel.
Together, these subsidiaries account for approximately 3% of our consolidated
fixed line subscribers.</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-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table summarizes key measures of our
local exchange service segment as at and for the years ended December 31, 2007,
2006 and 2005:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:95.32%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Years Ended
 December 31,</b></p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2005</b>(2)</p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Number of fixed line subscribers (at year-end)(1)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,724,702</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,776,647</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,842,507</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Number of fixed line employees (at year-end)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">8,080</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">8,711</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">9,197</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Number of fixed line subscribers per employee</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">213</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">204</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">200</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Total local exchange revenues (in millions)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php16,205</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php16,963</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;text-indent:
 0in' style="margin-top:0;margin-bottom:0">Local exchange revenues as a percentage of
 total service revenues </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">11%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">13%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;text-indent:
 0in' style="margin-top:0;margin-bottom:0">Local exchange revenues as a percentage of
 total fixed line service revenues</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">33%</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">35%</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 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>
</table></center></div>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
text-indent:0in' style="margin-top:0;margin-bottom:0">____________</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Previously set forth as
number of fixed lines in service, this was restated in 2006 to reflect the
effect of the change in parameters used to align with the PLDT Group&#146;s policy
on subscriber count with the planned use of an integrated billing system for
our subscribers.</i></p>

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

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;
line-height:9.0pt' style="margin-top:0;margin-bottom:0"><i>(2)   Pursuant to the
transitional relief granted by the U.S. SEC in respect of the first-time adoption
of IFRS, we have omitted revenue data for 2005.  Please see &#147;Presentation of
Financial Information&#148; above for further details.</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">As
at December 31, 2007, basic monthly charges for our local exchange service in
the Metropolitan Manila area were Php592.63 for a single-party residential line
and Php1,234.02 for a single business line.  Monthly charges vary according to
the type of customer (business or residential) and location, with charges for
urban customers generally being higher than those for rural/provincial
customers.  Regular installation charges amount to Php1,200 for residential
customers and Php1,500 for business customers.  New products launched on
promotion or products bundled on existing services usually waive the
installation fee or allow for a minimal installation fee of Php500.  Aside from
the basic monthly charges, we charge our postpaid subscribers separately for
NDD, IDD and calls to mobile phones.  Calls to PLDT and other landlines within
a local area code are free.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our prepaid fixed line customers generally do not pay a
basic monthly charge and are charged based on usage.  Subscribers of <i>TelePwede</i>,
our upgraded prepaid fixed line service, are charged a monthly fee of Php115
per month to receive incoming calls and are charged per usage for outgoing
calls.  The <i>TelePwede </i>installation fee is Php1,500, including Php127 of
preloaded value.  The international and national long distance rates we charge
to our prepaid fixed line customers are similar to the rates we charge to our
postpaid customers.  (For a detailed description of these rates, see &#147;&#151;
International Long Distance Service &#151; Rates&#148; and &#147;&#151; National Long Distance
Service &#151; Rates.&#148;)  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The monthly service fee for our PLDT Landline Plus
service is available in load denominations of Php300, Php600 and Php1,000 for
residential and business subscribers and includes 150, 600 and 1,000 free local
minutes, respectively.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Pursuant
to a currency exchange rate adjustment, or CERA, mechanism authorized by the
NTC, we are required to adjust our postpaid 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.  In 2007, we implemented five downward
adjustments and one upward adjustment in our monthly local service rates, while
there were eight downward adjustments and three upward adjustments in 2006.
The average Philippine peso to U.S. dollar rate factored in our monthly local
service rates in 2007 was Php48.67 to US$1.00, compared to an average of Php51.53
to US$1.00 in 2006.  This change in the average peso-to-dollar rate translated
to a peso appreciation of 6%, which resulted in a net decrease of approximately
5% in our average monthly local service rates in 2007.  In its letter dated
July 16, 2007, the NTC has approved our request to use annual average exchange
rates as our basis in CERA computation instead of the currently used monthly
averages.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
the first quarter of 2005, House Bill No. 926 was filed and is now pending in
the House of Representatives of the Philippines.  The proposed bill provides
for the cancellation of the currency exchange rate mechanism currently in
place.  If this bill is passed into law or if the NTC issues guidelines to
change the basis of the currency exchange rate mechanism, our ability to
generate U.S. dollar linked revenues from our local exchange business could be
adversely affected.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

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

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

<p style="margin-top:0;margin-bottom:0">Our international long distance
service consists of switched voice and packet-based voice and data services
that go through our international gateway facilities.  We also generate
international long distance revenues through access charges paid to us by other
Philippine telecommunications carriers for incoming international voice calls
that terminate to our local exchange network.  Our packet-based voice and data
services are transmitted over our existing traditional circuits, VoIP systems
and the network of a consortium of dominant carriers in Asia in which PLDT is a
member.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
following table shows certain information about our international long distance
business as at and for the years ended December 31, 2007, 2006 and 2005:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:96.06%;border-collapse:collapse;width:96.06% !msorm;border-collapse:
 collapse !msorm'>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Years Ended
 December 31,</b></p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2005</b>(1)</p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total call volumes (million minutes)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,280</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,177</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,266</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Inbound call volumes (million minutes)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,007</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,984</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,117</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Outbound call volumes (million minutes)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">273</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">193</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">149</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Inbound-outbound call ratio</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7.4:1</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10.3:1</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14.2:1</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total international long distance
 service revenues (in millions)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php8,674</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php9,933</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">International long distance service
 revenues as a percentage of total service revenues </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">International long distance service
 revenues as a percentage of total fixed line service revenues</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 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=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20%</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 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>
</table></center></div>

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

<p style='margin-top:0in;margin-right:0in;margin-bottom:
0in;margin-left:20.25pt;margin-bottom:.0001pt;text-indent:-20.25pt' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Pursuant to the transitional
relief granted by the U.S. SEC in respect of the first-time adoption of IFRS,
we have omitted revenue data for 2005.  Please see &#147;Presentation of Financial
Information&#148; above for further details.</i></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">International
long distance service historically has been a major source of our revenue.
However, primarily due to the steep decline in inbound termination and
collection rates and intense competition, revenues derived from our
international long distance service have been declining.  </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
have been pursuing a number of initiatives to strengthen our international long
distance service business, including by: (i) lowering our inbound termination
rates, (ii)&nbsp;identifying and containing unauthorized traffic termination on
our network, (iii) being more selective in accepting incoming traffic from
second- and third-tier international carriers, and (iv) introducing a number of
marketing initiatives, including substantial cuts in international direct
dialing rates, innovative pricing packages for large accounts and loyalty
programs for some customers.  In addition, through PLDT Global, we aggregate
inbound call traffic to the Philippines at our points of presence and, using
our capacity in submarine cable systems connected to each point of presence,
transmit calls to our network.  PLDT Global is also enhancing the presence of
PLDT in other international markets by offering new products and services such
as international prepaid cards, mobile services, SMS transit and other global
bandwidth services.  We believe these strategies will help us maximize the use
of our existing international facilities, and develop alternative sources of
revenue.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The table below sets forth the net settlement amounts
for international calls handled by PLDT, by country, for the years ended
December 31, 2007 and 2006(1):</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
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:96.0%;margin-left:5.4pt;border-collapse:collapse'>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Net
 Settlement</b></p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Years Ended
 December 31,</b></p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=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">(in millions)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">United States</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">US$55</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">US$54</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Saudi Arabia</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">28</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">United Arab Emirates</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Canada</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Japan</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Italy</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Hong Kong</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Malaysia</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;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=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Taiwan</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=right style='text-align:right;border:none;
 padding:0in' style="margin-top:0;margin-bottom:0">36</p>
 </div>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=right style='text-align:right;border:none;
 padding:0in' style="margin-top:0;margin-bottom:0">33</p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 1.0pt 0in'>
 <p align=right style='text-align:right;border:none;
 padding:0in' style="margin-top:0;margin-bottom:0">US$196</p>
 </div>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:double windowtext 2.25pt;padding:0in 0in 1.0pt 0in'>
 <p align=right style='text-align:right;border:none;
 padding:0in' style="margin-top:0;margin-bottom:0">US$185</p>
 </div>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:13.5pt;margin-bottom:.0001pt;text-indent:-13.5pt;
line-height:10.0pt' style="margin-top:0;margin-bottom:0"><i>(1) Pursuant to the
transitional relief granted by the U.S. SEC in respect of the first-time
adoption of IFRS, we have omitted net settlement amounts for 2005.  Please see
&#147;Presentation of Financial Information&#148; above for further details.</i></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;
text-indent:.25in' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Rates</i></h6>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Since February 1, 2003, a substantial portion of PLDT&#146;s
international inbound traffic terminating on its fixed line network is charged approximately
US$0.12 per minute.  </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Rates
for outbound international long distance calls are based on type of service,
whether operator-assisted or direct-dialed.  Our rates are quoted in U.S.
dollars and are billed in pesos.  The peso amounts are determined at the time
of billing.  We charge a flat rate of US$0.40 per minute to retail customers
for direct-dialed calls, applicable to all call destinations at any time on any
day of the week.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
also offer international long distance service through PLDT <i>Budget Card</i>,
a prepaid call card, which offers low-priced international calling services at IDD
call rates ranging from Php3.00 per minute to Php8.00 per minute depending on the
destination to more than 90 destinations (excluding the Middle East).
&nbsp;&nbsp;In April 2007, we introduced the <i>Budget Card Middle East Edition</i>
which offers reduced IDD call rates of Php10 per minute and Php15 per minute to
different destinations in the Middle East.  <i>Budget Card</i> and <i>Budget
Card Middle East Edition</i> are sold in denominations of Php200, Php100 and
Php30 and must be consumed within 30 days from first use.</p>

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

<p style="margin-top:0;margin-bottom:0"><i>National Long Distance
Service</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
national long distance services are provided primarily through PLDT.  This
service consists of voice services for calls made by our fixed line customers
outside of their local service areas within the Philippines and access charges
paid to us by other telecommunications carriers for wireless and fixed line calls
carried through our backbone network and/or terminating to our fixed line
customers.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows our national long distance
service revenues for the years ended December 31, 2007 and 2006 and our
national long distance call volumes for the years ended December 31, 2007, 2006
and 2005:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:94.66%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Years Ended
 December 31,</b></p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p 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'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2005</b>(1)</p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p 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=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total call volumes (million minutes)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,183</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,251</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,348</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total national long distance service revenues
 (in millions)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php6,338</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php6,921</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">National long distance service revenue
 as a percentage of total service revenues </p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4%</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5%</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">National long distance service revenue
 as a percentage of fixed line service revenues</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14%</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
text-indent:0in' style="margin-top:0;margin-bottom:0">__________</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Pursuant to the transitional
relief granted by the U.S. SEC in respect of the first-time adoption of IFRS,
we have omitted revenue data for 2005.  Please see &#147;Presentation of Financial
Information&#148; above for further details.</i></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Cellular
substitution and the widespread availability and growing popularity of
alternative, more economical non-voice means of communications, particularly
e-mailing and cellular text messaging, have negatively affected our national long
distance call volumes.  The integration of some of our local exchanges into a
single local calling area, as approved by the NTC, has also negatively affected
our national long distance call volumes, and consequently, our revenues.
Because of this integration, calls between two exchanges located within the
same province are no longer considered national long distance calls but are
treated as local calls.</p>

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

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

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Rates
for national long distance calls traditionally were based on type of service,
such as whether the call is operator-assisted or direct-dialed.  However, in
line with its move towards rate simplification, PLDT simplified these rates in
recent years to a flat rate of Php5.09 per minute for calls originating and
terminating to PLDT fixed line network, and for calls terminating to fixed line
networks of other local exchange carriers.  Additionally, in recent years, PLDT
simplified its rates for calls terminating to cellular subscribers to a uniform
rate of Php14.00 per minute.    </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
addition, PLDT launches from time to time promotions to stimulate fixed line
usage.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
January 7, 2006, we implemented a monthly flat service rate of Php50 which permits
subscribers to make national long distance calls of unlimited duration for
Php10 per call to subscribers of PLDT and, which permits subscribers who
registered for this flat rate service on or before February 24, 2006, to also
make such calls to subscribers of Smart and Piltel.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
continue to evaluate the present rate structure of our national long distance
services from per minute toll charges to flat rates per call for calls of
unlimited duration.  This is envisioned to make fixed line rates more
competitive with VoIP rates and to revitalize interest in fixed line usage.  We
continue studying various pricing models in respect of the above new rate plan.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
currently has interconnection arrangements with the majority of other local
exchange carriers, pursuant to which the originating carrier pays: (1) a
hauling charge of Php0.50 per minute for short-haul traffic or Php1.25 per
minute for long-haul traffic to the carrier owning the backbone network; and
(2) an access charge of Php1.00 per minute to the terminating carrier.  PLDT
still maintains revenue-sharing arrangements with a few other local exchange
carriers, whereby charges are generally apportioned 30% for the originating
entity, 40% for the backbone owner and the remaining 30% for the terminating
entity.  For more information on these interconnection arrangements, see &#147;&#150;&#150;
Interconnection Agreements.&#148;</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Data and Other Network Services</i></p>

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our data and other network service revenues include
charges for leased lines, IP-based, packet-based and switched-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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows our data and other network
service revenues for the years ended December 31, 2007 and 2006 and our numbers
of broadband and narrowband subscribers as at December 31, 2007, 2006 and 2005:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:95.54%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Years Ended
 December 31,</b></p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p 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'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>2005</b>(1)</p>
 </div>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p 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=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Consolidated data and other network
 service revenues (in millions)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php15,921</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php13,725</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Number of DSL broadband subscribers</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">264,291</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">133,159</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">88,811</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Number of PLDT Vibe narrowband subscribers</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">230,995</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">297,250</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">266,703</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
text-indent:0in' style="margin-top:0;margin-bottom:0">__________</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Pursuant to the transitional
relief granted by the U.S. SEC in respect of the first-time adoption of IFRS,
we have omitted revenue data for 2005.  Please see &#147;Presentation of Financial
Information&#148; above for further details.</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Recognizing the growth potential of data and other
networking services, including IP-based services, and in light of their
importance to our business strategy, we have been putting considerable emphasis
on these service segments.  These segments registered the highest percentage
growth in revenues among our fixed line services in 2007 and continued to grow
in the first quarter of 2008. </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><a
name="_DV_M586"></a>The continuous upgrading of our
network using next-generation facilities and the completion of our domestic
fiber optic backbone has enabled us to offer a growing range of value-added and
broadband services.  With this and other technological upgrades, our
infrastructure has developed from a traditional voice facility to a new
packet-switched and IP-based network allowing faster transmission of voice,
video and data.  </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><a
name="_DV_M587"></a>Our IP-based services include <i>PLDT
DSL</i> (<i>myDSL</i> and <i>BizDSL</i>), a broadband internet service targeted
for heavy individual internet users as well as for small and medium
enterprises, <i>PLDT Vibe</i>,  a dial-up/narrowband internet service targeted
for light to medium residential individual internet users, and I-Gate, our
dedicated leased line internet access service targeted for enterprises and
value-added service providers.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In addition, in 2006, we introduced <i>Shops.work Unplugged</i>,
or SWUP, a bundled service using Smart&#146;s GPRS/EDGE network and PLDT&#146;s virtual
private network, or VPN, for retailers and banks  that offers real-time
wireless data communication for retailers&#146; cashiering point-of sale networks,
bank automated teller machines, or ATMs, and merchants&#146; swipe card terminals.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
2007, we continued to broaden our service offerings with the launch of new
services and expansion or enhancement of some of the existing offerings.  </p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779204"></a><a
name="_Toc46082263"><b><i>Information and
Communications Technology</i></b></a></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
conduct our information and communications technology, or ICT, businesses
through our wholly-owned subsidiary ePLDT.  ePLDT is a broad-based integrated
information and communications technology company, focusing on infrastructure
and solutions for internet applications, internet protocol-, or IP-, based
solutions and multimedia content delivery.  ePLDT's principal businesses are
the operation of (1) knowledge processing solutions, through the SPi Group, (2)
customer interaction services through Vocativ, Parlance and <i>Ventus</i>, (3)
an internet data center under the brand name <i>Vitro</i>&#153;, and (4) internet
and online gaming through Infocom, netGames, Digital Paradise, Digital Paradise
Thailand, Level Up! and Airborne Access.  Our ICT business segment registered
revenues of Php10,799 million and Php6,925 million, accounting for 7% and 5% of
our total revenues for 2007 and 2006, respectively.  The increase in the
revenue contribution from our information and communication technology segment
was primarily due to the consolidation of SPi, CyMed and Level Up! since their acquisition
by ePLDT on July 11, 2006, August 11, 2006 and April 30, 2006, respectively,
and has increased with the full-year consolidation of the SPi Group in 2007.</p>

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

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Knowledge Processing Solutions </i></h6>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">ePLDT
provides knowledge processing solutions through SPi Group, the second largest
pure-play knowledge processing solutions company and the ninth largest
independent knowledge processing solutions service provider worldwide acquired
by ePLDT in July 2006.  SPi has operations in 19 locations in North America,
Europe and Asia.  On August 11, 2006, SPi acquired 100% of CyMed, a leading
medical transcription company based in Richmond, Virginia, and on April 12,
2007, SPi acquired 100% of Springfield, one of the ten largest players in the
medical billing and revenue cycle management market.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">&nbsp;</h6>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Customer Interaction Services </i></h6>

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

<p style='margin:0in;margin-bottom:.0001pt;text-indent:
..5in' style="margin-top:0;margin-bottom:0">ePLDT has established one umbrella brand
name, <i>ePLDT Ventus</i>, for all of its customer interaction service
businesses, including Vocativ and Parlance.  <i>Ventus </i>provides offshore,
cost-effective contact center outsourcing solutions specializing in inbound
customer care.  Vocativ provides customer and technical support to its clients
in the Philippines, U.S. and U.K., while Parlance provides the exclusive
customer support and billing requirements to one of the largest direct-to-home
satellite television providers in the U.S.  In total, we owned and operated
approximately 6,400 seats with 5,930 customer service representatives, or CSRs,
in 2007 compared to approximately 5,600 seats with 5,130 CSRs in 2006.  In
2006, <i>ePLDT Ventus</i> launched two new sites bringing our total customer
interaction services site count to nine in 2007.</p>

<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' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Internet and Online Gaming </i></h6>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">ePLDT&#146;s
internet and online gaming business is conducted through several subsidiaries.  ePLDT
owns a 99.6% interest in Infocom, one of the country's leading internet service
providers, or ISPs.  Infocom offers consumer prepaid internet access under the
name <i>WarpSpeed</i> and <i>Speed Tipid</i> and postpaid internet access;
dedicated dial-up and multi-user dial-up corporate leased lines; broadband internet
access through DSL and cable; and website consulting, development and hosting.
ePLDT also owns a 75% interest in Digital Paradise, an internet caf&#233; business
with over 174 branches which assumed the assets of Netopia Computer
Technologies, Inc. and the brand <i>Netopia.  </i>ePLDT further holds an 80%-interest
in netGames, a publisher of Massively Multi-player Online Games in the
Philippines, and is the Philippine licensee of <i>Khan Online</i>, the
country&#146;s first full 3D online game; a 51% interest in Airborne Access, the
country&#146;s leading operator of WiFi hotspots, which provides wireless internet
access in hotspots equipped with Airborne Access WiFi access points and a 60%
equity interest in Level Up!, a leading publisher of online games in the
Philippines with about an 80% share of the online gaming market.</p>

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">ePLDT
operates <i>Vitro</i>&#153;, one of the Philippines' first internet data centers.  <i>Vitro</i>&#153;
is a CISCO-certified co-location service provider.  <i>Vitro</i>&#153; provides
co-location, web and server hosting, hardware and software maintenance
services, website development and maintenance services, webcasting and webhosting,
shared applications, data disaster recovery and business continuity services,
intrusion detection and internet protocol security services, as well as
firewall and managed firewall services.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779205"></a><a
name="_Toc46082265"></a><a name="_Toc170286149"></a><a name="_Infrastructure"></a><b>Infrastructure</b></p>

<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><i>Wireless Network Infrastructure</i></b><b><i> </i></b></p>

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

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

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Through Smart, we operate a digital GSM network.  To
meet the growing demand for cellular services, Smart has implemented an
extensive deployment program for its GSM network covering substantially all of
Metro Manila and most of the other population centers in the Philippines.  As at December 31, 2007, Smart had 43 mobile switching centers and 77 text messaging
service centers and 7,825 base stations in operation after having added 1,726
base stations to its nationwide cellular network in 2007, Piltel had six active
cell sites.</p>

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

<p align=left style='margin-top:0in;text-align:left;
text-indent:.5in;line-height:normal' style="margin-top:0;margin-bottom:0">Smart has an operating spectrum of 7.5 MHz in the 900 band
supporting both its GSM and previously its ETACS network and 20 MHz in the 1800
band for GSM and 15 MHz in the 3G band for W-CDMA.  Its dual-band GSM network
allows it to efficiently deploy high capacity 1800 MHz base transceiver
stations in dense urban areas while its 900 MHz base transceiver stations can
be much more economically deployed in potentially high growth, but less densely
populated provincial areas.  The 3G network revolutionizes mobile technology by providing
more capacity, faster data rates and richer data and video applications.  Its
initial deployment is seen as feasible in urban areas where there is a demand
for mobile broadband applications and where 3G mobile units are more likely to
be available.  Spectrum constraints
will not affect the Smart&#146;s expansion plans for GSM in the foreseeable future.
</p>

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

<p align=left style='margin-top:0in;text-align:left;
text-indent:.5in;line-height:normal' style="margin-top:0;margin-bottom:0">Due to its access to PLDT&#146;s network assets, Smart has been
able to achieve significant capital expenditure savings, which capital
expenditures are understood to be significantly less, on a per net addition
basis, than its current competitors.  This translates into an improved ability
to price competitively and target the mass market subscriber base in the Philippines, while retaining profitability.  Based on existing equipment purchase
contracts, Smart expects incremental capital expenditure per net additional
subscriber to amount to less than US$50. </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
expect continued increases in coverage (particularly indoor) in the coming
years, as well as the introduction of new types of BTS for indoor and
commercial offices.  Smart has introduced the <i>NanoBTS, </i>a compact and
easy-to-deploy<i> </i>solution for indoor coverage and increased efficiencies
in underserved offices and buildings.  The new base station equipment uses IP
for transport and Smart is one of the very first operators to deploy this
access solution.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Smart
was awarded a 3G license by the NTC in 2005 and received the largest radio
frequency allocation of 15 MHz.  Smart chose the 1920-1935 MHz and 2110-2125
MHz spectrum, the range that would best enable it to rapidly deploy its 3G
network nationwide and at the same time offer the highest quality of 3G
service.  Smart has commenced its 3G network roll-out and continues to extend
the reach of its 3G network in various cities and municipalities nationwide,
further improving coverage in major urban centers and selected provincial
areas. </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Smart
and Piltel have been co-locating their cell sites where their base stations are
installed.  As at December 31, 2007, 26 of Smart's mobile switching centers and
214 of Smart's cell sites were housed in PLDT&#146;s fixed line complexes while 249
of Smart&#146;s cell sites were co-located with Piltel.  These operational synergies
have allowed Smart to reduce switch installation time from three months to five
weeks.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Wireless Broadband, Satellite and Other Services</i></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">SBI
operates a nationwide broadband wireless internet data services.  It is operating
in the 2.4, 3.5 and 5.7 GHz spectrum, supporting its WiFi, Canopy and eventually
WiMax services, respectively.  It offers fixed wireless broadband internet
connectivity to both residential and corporate clients. It also maintains and
operates WiFi hotspots installations that serve mobile internet users.  Almost 1,798
of Smart&#146;s base stations are now wireless broadband-capable, covering most of
the key cities and the other populated centers in the country.  These are
strategically co-located in the Smart&#146;s cellular base stations that allow it to
reach as many subscribers as possible, in the fastest possible way.  For its
backbone, it uses the nationwide PLDT and Smart fiber optic and IP backbone
that provide substantial bandwidth capacity to utilize and to grow on demand. </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Mabuhay
Satellite controls and operates the Agila II satellite, which has 30 C-band
transponders and 24 Ku-band transponders covering the Asia-Pacific region, the
Indian subcontinent and Hawaii.  Of the 54 transponders, six have restricted
usage due to satellite interference.  Through Agila II, Mabuhay Satellite
offers internet service, video and data broadcasting, and bandwidth-on-demand,
facilitating communication links between telecommunications, broadcast and
other public utility companies operating in the Asia-Pacific region.  In
December 2000, Agila II joined the U.S. FCC's &quot;Permitted Space
Station&quot; list, which permits U.S.-owned and operated earth stations in
Hawaii to access Agila II for transpacific telecommunications, data, video and internet-over-satellite
traffic and vice versa.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">ACeS
 Philippines manages, controls and operates its own satellite gateway and
other ground infrastructure, including a 13-meter feeder-link C-band earth
station, beam congruency antenna and equipment that serve as the primary
interface between the ACeS system and other telecommunications networks.  It
uses the Garuda I satellite to transmit digital voice services to ACeS
Philippines&#146; mobile and fixed terminal users within the Asian service area.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779206"><b><i>Fixed Line Network Infrastructure</i></b></a></p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Domestic</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 domestic telephone network includes installed
telephones and other equipment on customers&#146; premises, local access lines
connecting customers to exchanges, referred to as &#147;outside plant,&#148; inter-office
lines connecting exchanges, and long distance transmission equipment.  As at
December 31, 2007, we had 228 central office exchanges compared to 184 in 2006.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
have our own 6,400-kilometer DFON, the country's first telecommunications
network using fiber optics in delivering voice, video, data, and other
broadband and multimedia services nationwide.  Our fiber optic network employs
synchronous digital hierarchy technology to improve network performance and
reduce operating costs.  Our network is composed of in-land and submarine cable
installations and is configured in seven self-healing rings allowing route
delivery even in the event of single link failure per ring.  To date, the PLDT
DFON is equipped with N x 10 gigabits per second capacity and is connected
directly to four existing international submarine cable systems.  We use <i>CS VEGA</i>,
a cable ship which we lease from NTT World Engineering Marine Corporation, or
NTT-WEM, pursuant to a chartered arrangement maintenance contract to maintain
the 2,400 kilometers of submarine cable comprising the submerged portion of our
DFON.  This seven-year maintenance contract, as extended, expired last December
31, 2007.  We are currently renewing the contract with NTT-WEM on a monthly
basis until such time that a new long-term maintenance contract is in place.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
are currently upgrading our fixed line facilities to NGN, a broad term for
certain emerging computer network technologies that can encompass voice, data
and video where all information is efficiently transmitted via digital packets
of data.  It is a platform that will allow for more services to be made
available to our fixed line subscribers.</p>

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

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

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We provide international network services using our
three international gateway switching exchanges.  As at December 31, 2007, our
international long distance facilities allow direct correspondence with 47
countries/territories (representing 87 correspondents) and can reach 460
foreign destinations (via direct and transited routes including breakouts)
worldwide.  We also own interests in submarine and satellite systems, through
which we route most of our international traffic.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
table below shows the submarine cable systems in which we have interests and
the countries or territories they link:</p>

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

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

 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:8.1pt'>
 <p style='page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Cable System</b></p>
 </div>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p style='page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Countries Being Linked</b></p>
 </div>
 </td>
 </tr>

 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <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=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">G-P</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Guam and the Philippines</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asia-Pacific Cable Network</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Korea, Japan, Hong Kong, Taiwan, Australia, Philippines, Singapore, Malaysia, Indonesia and Thailand</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asia-Pacific Cable Network 2</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Philippines, Hong Kong, Japan, Korea, Malaysia, Singapore, China and Taiwan</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Transpacific Cable No. 5</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Guam, Japan, Hawaii and the U.S. Mainland</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">SEA-ME-WE-3</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Japan, Korea, China, Taiwan, Hong Kong, Macau, Philippines, Vietnam,
 Cambodia, Brunei, Malaysia, Singapore, Indonesia, Australia, Thailand,
 Myanmar, Sri Lanka, India, Pakistan, United Arab Emirates, Oman, Djibouti,
 Saudi Arabia, Egypt, Cyprus, Turkey, Greece, Italy, Morocco, Portugal,
 France, UK, Belgium and Germany</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Americas Cable 1</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">U.S. Mainland, U.S. Virgin Islands, Brazil, Trinidad and Venezuela</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">China-U.S. Cable</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Japan, China, Taiwan, Korea, Guam and U.S. Mainland</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Columbus II Cable</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">U.S. Mainland, Italy, U.S. Virgin Islands, Mexico, Portugal and Spain</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">FLAG Cable</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Japan, Korea, China, Hong
 Kong, Malaysia, Thailand, India, United Arab Emirates, Saudi Arabia, Egypt,
 Italy, Spain and UK</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">RJK Cable</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Russia, Japan and Korea</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Southern Cross Cable</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">U.S. Mainland, Hawaii, Fiji, Australia and New Zealand</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">TAT 12/13 Cable</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">U.S. Mainland, UK and France</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">TVH Cable</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Thailand, Vietnam and Hong Kong</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">EAC Cable</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Japan, Hong Kong, Korea, Taiwan, Singapore and the Philippines</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">PC-1, Japan-U.S. Cable and
 TGN</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Japan and the U.S.</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Additionally, on May 2, 2007, a consortium of seventeen
major international telecommunication operators, including PLDT, signed an
agreement to build the first high-bandwidth optical fiber submarine cable system
linking Southeast Asia and the U.S.&nbsp; The cable project, known as the <i>Asia-America
Gateway,</i> will span 20,000 kilometers and will use the latest Dense Wavelength
Division Multiplexing technology to provide upgradeable, future proof
transmission facilities that will support bandwidth requirements for new and
revolutionary broadband applications.&nbsp; It is expected that the <i>Asia-America
Gateway</i> will cost approximately US$500 million (of which US$50 million represents
PLDT&#146;s investment) and will be ready for service by the first quarter of 2009.</p>

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

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286150"></a><a name="_Toc75779207"></a><a
name="_Toc46082266"></a><a name="_Interconnection_Agreements"></a><b>Interconnection Agreements</b><b> </b></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Since
the issuance of Executive Order No. 59 in 1993, which requires
non-discriminatory interconnection of Philippine carriers' networks, we have
entered into bilateral interconnection arrangements with other Philippine fixed
line and cellular carriers.  </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Since
January 1, 2004, calls terminating to cellular subscribers originating from
fixed line subscribers are charged a termination rate of Php4.00 per minute.  </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Since January 1, 2004, local access for cellular
operators, including Smart, that terminate calls to PLDT&#146;s fixed line network were
charged at Php3.00 per minute.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Under
a separate agreement between PLDT and PAPTELCO, PLDT is the transit facility
provider between Smart, Globe, other local exchange carriers, or LEC, operators
and PAPTELCO.  PAPTELCO is comprised of 48 LEC and operating in 144 major
telephone exchanges nationwide.  Transit traffic is a service by PLDT to Smart,
Globe, other LEC operators and PAPTELCO members where PAPTELCO members have no
direct interconnection with either Smart, Globe and other LEC operators.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Since
February 1, 2003, international calls terminating to PLDT&#146;s fixed line network
were charged a termination rate of approximately US$0.12 per minute.  Also,
international calls terminating to Smart&#146;s cellular network were charged a
termination rate of US$0.16 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">Since
January 1, 2002, Smart charged a termination rate of Php4.00 per minute for
calls originating from/terminating to another cellular operator&#146;s network.  For
SMS originating from Smart and terminating on other operators&#146; cellular network
and for SMS originating from other operators and terminating on Smart&#146;s
cellular network, the charge is Php0.35 per message.</p>

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

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286151"></a><a name="_Toc75779208"></a><a
name="_Toc46082267"></a><a name="_Licenses_and_Regulation"></a><b>Licenses and Regulation</b><b> </b></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">PLDT,
Smart and Piltel provide telecommunications services pursuant to legislative
franchises that expire, in the case of PLDT, on November 28, 2028, in the case
of Smart, on March 27, 2017 and, in the case of Piltel, on May 14, 2019.  A
franchise holder is required to obtain operating authority from the NTC to
provide specific telecommunications services.  These approvals may take the
form of a Certificate of Public Convenience and Necessity, or CPCN, or, while
an application for a CPCN is pending, a provisional authority to operate.  Provisional
authorities are typically granted for a period of 18 months.  The Philippine
Revised Administrative Code of 1987 provides that if the grantee of a license
or permit, such as a CPCN or provisional authority, has made timely and
sufficient application for the extension thereof, the existing CPCN or
provisional authority will not expire until the application is finally decided
upon by the administrative agency concerned.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">PLDT
operates its business pursuant to a number of provisional authorities and
CPCNs, the terms of which will expire at various times between now and 2028.
PLDT's CPCNs to provide services to most of the Metropolitan Manila area, Davao and other Philippine cities expired in 2003.  Although some of PLDT's CPCNs and
provisional authorities have already expired, PLDT filed timely applications
for extension of these CPCNs and provisional authorities prior to their
respective expiration dates and is therefore entitled to continue to conduct
its business under its existing CPCNs and provisional authorities pending the
NTC&#146;s decision on these extensions.  PLDT expects that the NTC will grant these
extensions; however, there can be no assurance that this will occur.  The
period of validity of some of PLDT&#146;s CPCNs which expired on November 28, 2003,
coterminous with the term of its previous franchise under Republic Act No.
6146, has been extended further by the NTC to November 28, 2028, coterminous
with PLDT&#146;s current franchise under Republic Act No. 7082.  Motions to extend
the period of validity of the other CPCNs to November 28, 2028 are currently pending
with the NTC.  See Item 3. &#147;Key Information &#150;&#150; Risks Factors &#151; Risks Relating
to Us &#151; Our business is significantly affected by governmental laws and regulations,
including regulations in respect of our franchises, rates and taxes.&#148;  </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Smart
operates its cellular, international long distance and national long distance
services pursuant to CPCNs, the terms of which will expire upon the expiration
of its franchise.  On July 22, 2002, Smart was granted separate CPCNs to
operate a cellular mobile telephone system, or CMTS, and an international
gateway facility.  On August 26, 2002, Smart was granted a CPCN to install,
operate and maintain nationwide global mobile personal communications via
satellite which will also expire upon expiration of its franchise.  On February
19, 2008, Smart was granted a CPCN to establish, install, maintain, lease and
operate an international private leased circuit for a term that is co-terminus
with the expiration of its franchise. Prior to that, Smart was permitted to
engage in these activities pursuant to a provisional authority and a timely
filed application for the grant of such CPCN.  On the same date, upon
application of Smart, the NTC extended Smart&#146;s provisional authority to
construct, install, operate and maintain a nationwide public calling office and
public payphone service from January 4, 2007 to January 4, 2010.  </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
December 29, 2005, Smart was awarded a 3G license by the NTC after being ranked
highest in garnering a perfect score on a 30-point grading system designed to
gauge the capability of telecommunication operators to effectively provide
extensive 3G services.  As a result, Smart received the largest radio frequency
allocation of 15 MHz as well as first choice of frequency spectrum.  Smart
chose the 1920-1935 MHz and 2110-2125 MHz spectrum.  Smart is required to pay
annual license fees of Php115 million based on the 15 MHz awarded to Smart.</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">Under the terms of the 3G license, Smart is required
to:</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
begin installation and rollout of
its 3G network no later than 18 months from the date of the award;</p>

<p style='margin-left:.5in;line-height:6.0pt;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
start commercial operations no
later than 30 months from the date of the award; and</p>

<p style='margin-left:.5in;line-height:6.0pt;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
cover at least 80% of provincial
capitals and 80% of chartered cities within five years.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Piltel
is authorized to provide virtually every type of telecommunications service,
including the transmission of voice, data facsimile, audio and video and
information services, in and between provinces, cities and municipalities
throughout the Philippines.  The franchise, which was last amended on May 14,
1992, will expire on May 14, 2019 and may be extended by a legislative act of
the Philippine Congress.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table sets forth the spectrum system,
licensed frequency and bandwidth used by Smart, Piltel and SBI:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:.9pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Carrier</b></p>
 </div>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Spectrum
 System</b></p>
 </div>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Frequency
 Assignment</b></p>
 </div>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Bandwidth</b></p>
 </div>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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 style='page-break-inside:avoid'>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">ETACS/GSM 900</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">897.5-905/942.5-950 MHz</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">7.5 MHz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">GSM 1800</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1725-1730/1820-1825 MHz</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">5.0 MHz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1730-1732.5/1825-1827.5 MHz</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2.5 MHz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1735-1740/1830-1835 MHz</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">5.0 MHz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1745-1750/1840-1845 MHz</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">5.0 MHz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1780-1782.5/1875-1877.5 MHz</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2.5 MHz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">3G (W-CDMA)</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1920-1935/2110-2125 MHz</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">15.0 MHz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Piltel</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">AMPS/CDMA</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">845-846.5/890-891.5 MHz</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1.5 MHz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">SBI</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Wireless broadband</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">2400-2483.5 MHz *</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">73 MHz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">3400-3590 MHz *</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">94 MHz</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">5470-5850 MHz *</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">123 MHz</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>*    SBI frequency assignments on these bands are
non-contiguous and on a per station and location basis.</i></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Operators
of international gateway facilities and cellular telephone operators, pursuant
to Executive Order No. 109, are required to install a minimum number of local
exchange lines.  Of these new lines, operators are required to install one
rural exchange line for every ten urban exchange lines installed.  Smart and
Piltel were required to install 700,000 and 400,000 lines, respectively, and
each has received a certificate of compliance from the NTC.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">PLDT,
Smart and Piltel are required to pay various permit, regulation and supervision
fees to the NTC.  PLDT was previously engaged in disputes with the NTC over
some of the assessed fees.  For more information on the disputes involving
PLDT, see Item 8. &#147;Financial Information &#150;&#150; Legal Proceedings &#150;&#150; NTC supervision
and regulatory fees, or SRF.&#148;</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">Piltel is engaged in discussions with the NTC relating
to the allocation and use of certain 3G radio frequency bands.  On August 23,
2005, the NTC issued Memorandum Circular No. 07-08-2005 or the Rules and Regulations
on the Allocation and Assignment of 3G Radio Frequency Bands, allocating the
825-845MHz/870-890MHz frequency band for 3G. In a letter dated December 8,
2005, Piltel informed the NTC of its intent to upgrade its existing CDMA CMTS
network to 3G.</p>

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

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">In a letter dated June 18, 2007, Piltel requested the
NTC to affirm its right to use the said frequency band by allowing the joint
use thereof by Smart and Piltel which was granted previously by NTC (through
then Commissioner Rio) in a letter dated May 6, 2002, arguing that the
re-allocation of the frequency band was done without due process; that Piltel
had been complying with the mandates of the NTC and had been persistently
applying for, and renewing, the Radio Station Licenses (RSLs); that it had been
paying the spectrum users fees (SUF); and that the re-allocation of the
frequency band for 3G renders inutile the RSLs with effectivity dates of up to
June 30, 2008.</p>

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

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">In a letter dated November 27, 2007, Piltel requested
to use the 824-835MHz/869-880MHz frequency band for 3G services, with a
commitment to submit pertinent documents, referring to its letter of December
8, 2005 on its intent to upgrade its existing CDMA CMTS network to 3G.</p>

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

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">However, in its letter dated December 12, 2007, the
NTC denied Piltel&#146;s letter of November 27, 2007 citing that records showed that
the radio frequencies 824-835MHz/869-880MHz had been re-allocated for International
Mobile Telecommunications 2000 (IMT2000) or Third Generation (3G) Mobile Telecommunications
Services under Memorandum Circular 07-08-2005 and that Piltel had not applied
for the assignment and use of radio frequencies re-allocated for 3G Mobile
Telecommunications Service nor was qualified for the assignment of the same.</p>

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

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">In a letter dated December 19, 2007, Piltel requested
reconsideration of the December 12, 2007 letter of the NTC, reiterating its
commitment to submit necessary documents that may be required by the NTC.  Piltel&#146;s
request for reconsideration remains pending with the NTC.</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
Philippine Congress is considering two bills that relate to the imposition of
franchise tax on telecoms companies.&nbsp; HB No. 1469 proposes to re-impose a
5% franchise tax on gross receipts on telephone and telegraph services in lieu
of the VAT.&nbsp; HB No. 1560 proposes a franchise tax at the rate of 3.5% on
the first year and 7% thereafter on the gross receipts of telecoms and
broadcast companies, in lieu of the VAT.&nbsp; There are also various bills in
Congress which propose to tax telecommunications services, among them, the
imposition of a tax on mobile phone companies on all text entries to text
games; the imposition of a Php0.50 specific tax on each SMS to be borne by the
cellular phone companies; and the imposition of a 10% ad valorem tax on all
cellular phone calls using 3G.  </p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc75779209"></a><a name="_Toc46082268">&nbsp;</a></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
order to diversify the ownership base of public utilities, the Public
Telecommunications Policy Act (R.A. 7925) requires a telecommunications entity
with regulated types of services to make a public offering through the stock
exchanges representing at least 30% of its aggregate common shares by the later
of the fifth anniversary of the date (a) the law became effective or (b) the
entity&#146;s commencement of commercial operations.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
and Piltel have complied with this requirement.  However, Smart has not
conducted a public offering of its shares.  If Smart is found to be in violation of R.A. 7925, this could result in a revocation of the
franchise of Smart and in the filing of a <i>quo warranto</i> case against
Smart by the Office of the Solicitor General of the Philippines.  See Item 3.
&#147;Key Information &#150; Risk Factors &#150; The franchise of Smart may be revoked due to
its failure to conduct a public offering of its shares&#148; for further discussion.</p>

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

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286152"></a><a name="_Competition"></a><b>Competition</b></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Including
us, there are nine major local exchange carriers, seven international gateway
facility providers and five cellular service providers in the country.  Many
new entrants into the Philippine telecommunications market have entered into
strategic alliances with foreign telecommunications companies, which provide
them access to technological and funding support as well as service innovations
and marketing strategies.  Consequently, we are facing increasing competition
in major segments of the telecommunications industry, particularly data and
other network services segments.</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"><i>Cellular Service</i></p>

<p style='text-indent:.5in;line-height:10.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">There are presently six operating service providers,
namely Smart, Piltel, Globe, Innove, Digitel and Express Telecom, or Extelcom.
Globe acquired Innove to form into one operating group while Smart and Piltel,
both being part of the PLDT Group, formed another operating group.  These two
operating groups have approximately 92% of the Philippine cellular market.
There are therefore effectively two large competitors in the Philippine
cellular market.  The third active operator, Digitel commenced its
cellular service, <i>Sun Cellular</i>, on March 29, 2003 and is estimated to
have approximately 8% of the cellular market as at December 31, 2007.  Extelcom
operates on an analog platform and is estimated to have minimal subscribers.  In December 2005, the NTC awarded four out
of five 3G licenses to existing cellular operators Smart, Globe, Digitel and to
a new entrant, Connectivity Unlimited Resources Enterprises, or CURE.  The NTC
has yet to award a fifth license to another operator.</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Competition
in the cellular industry has intensified with the increased availability of
affordably priced handsets offering a range of new functions and the
introduction by competitors of new and improved plans for postpaid subscribers,
reduced rates per minute and aggressive marketing and promotional strategies.
The principal bases of competition are price, including handset cost, quality
of service, network reliability, geographic coverage and attractiveness of
packaged services.  Smart's network leads the industry in terms of coverage
with 7,825 base stations as at December 31, 2007.</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">As a
result of competitive pressures, several service providers, including Smart and
Piltel, have, in the last two years, introduced &#147;bucket&#148; plans providing
unlimited voice and text services, and other promotions.  The launch of <i>Sun
Cellular&#146;s &#147;24/7&#148;</i> promotion stimulated a market segment that is attracted
to &#147;bucket&#148; plans for voice and text services.  Smart launched &#147;<i>Smart 258</i>&#148;,
a registration-based service which offers unlimited on-networks text messaging
in various load denominations with designated expiration periods.  While most
of the &#147;bucket&#148; priced plans currently available in the market are being
offered on promotional bases, Smart, Globe and Sun Cellular continue to launch
other services that are designed to encourage incremental usage from existing
subscribers and also to attract new subscribers.  </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">Cellular operators also compete actively in launching innovative
products and value-added services.  The growing range of cellular products and
services include not only text messaging but also multi-media messaging, voice
mail, text mail, international roaming, information-on-demand, mobile banking,
e-commerce, mobile data, cellular internet access and internet messaging.</p>

<p style='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, 2006, Smart opened its 3G network in selected key
cities nationwide, making video calling, video streaming, high speed internet
browsing and special 3G content downloads on its 3G network available to
subscribers with 3G handsets.  Likewise, Globe is currently rolling out its 3G
network.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Consistent with industry practice and Smart&#146;s churn management efforts,
Smart &quot;locks&quot; the handsets it sells to its subscribers, rendering
them incompatible with SIM cards issued by competitors and thereby hindering
them from swapping the existing SIM for a SIM of a competing operator.
However, subscribers can have their handsets &#147;unlocked&#148; by unauthorized parties
for a nominal fee and purchase new SIM cards from competing operators.
&#147;Unlocking&#148; does not involve significant cost.  Switching to another cellular
operator would, however, result in a change of the subscriber&#146;s cellular
telephone number.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
order to avail themselves of promotions and cost efficient network-to-network
calling rates, cellular subscribers in the Philippines have increasingly been
subscribing to the services of multiple wireless operators.  As a result, the
increases in 2007 in our cellular subscriber base and the penetration rate of
the wireless market in the Philippines partly was impacted by such &#147;multiple SIM
card ownership&#148;.   </p>

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

<p style="margin-top:0;margin-bottom:0"><i>Local Exchange Service </i></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
concerted nationwide local exchange line build-out by various players, as
mandated by the Philippine government, significantly increased the number of
fixed line subscribers in the country and resulted in wider access to basic
telephone service.  The growth of the fixed line market, however, remained weak
due to the surge in demand for cellular services and, in the past, the general
sluggishness of the national economy.  Nevertheless, we have sustained our
leading position in the fixed line market on account of PLDT's extensive
network in key cities nationwide.  In most areas, we face one or two
competitors.  Our principal competitors in the local exchange market are
Digitel, Bayan Telecommunications and Globe, which provide local exchange
service through &#147;fixed wireless landline services.&#148;  </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">There are currently four major fixed wireless landline
services in the market that adopt the look and feel of a cellular phone service
but provide the same tariff structure of a fixed line service such as the charging
of monthly service fees.  The earliest such service was provided by Digitel in
the fourth quarter of 2005 at a fixed monthly rate of Php672.  This service is provided
mostly in selected areas of Southern and Northern Luzon where Digitel was
lacking fixed cable facilities.  Globe quickly followed suite with a similar
service at a monthly rate of Php995 which service bundled a wireless landline
and broadband internet connection of 384kbps.  This service is offered in
limited areas of Metro Manila like Makati, Las Pi&#241;as, the Visayas region and
selected areas of Southern Luzon like Cavite and Batangas. </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
most aggressive service of this type was launched by BayanTel in the second
half of 2006, which service maintains two major price points open to both residential
and business subscribers.  This service is available under two plans, a plan at
a monthly rate of Php699 for customers in Metro Manila and a plan at a monthly
rate of Php599 for customers in selected regional areas of the Philippines.</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">In March 2007, we launched the <i>PLDT
Landline Plus, </i>a postpaid and prepaid fixed wireless service which was
initially available only in regional areas where there were no available PLDT
fixed cable facilities, at a flat monthly rate of Php499, and which was
subsequently extended to other areas, including Metro Manila, and increased to
a monthly rate of Php600 for residential and Php1,000 for business subscribers.</p>

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

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

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Including us, there are 11 licensed international
gateway facility operators in the country.  While we have so far been able to
maintain a leadership position in this highly competitive segment of the
industry, in recent years, our market share has reduced largely as a result of
(1) competition from other international gateway facility operators and illegal
international simple resale operators; (2) an increase in inbound and outbound
international long distance calls terminating to and originating from the
growing number of cellular subscribers; and (3) the popularity of alternative
and cheaper modes of communication such as text messaging, e-mail, internet
telephony and the establishment of VPNs for several corporate entities, further
heightening the competition.</p>

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

<p style="margin-top:0;margin-bottom:0">With respect to outbound calls
from the Philippines, we compete for market share through our local exchange
and cellular businesses, which are the origination points of outbound
international calls.  We have also introduced a number of marketing initiatives
to stimulate growth of outbound call volumes, including tariff reductions and
volume discounts for large corporate subscribers.  Digitel and Globe have also
launched new pricing schemes to grow their outbound call volumes.  </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">With
respect to inbound calls into the Philippines, we have been pursuing a number
of initiatives to strengthen our inbound telecommunications traffic, including
lowering our termination rates and identifying and limiting unauthorized
traffic termination.   In addition, we have also established, through our
wholly-owned subsidiary PLDT Global, presence in key cities overseas to
identify and capture Philippine terminating traffic at its source, maximize the
use of our international facilities and develop alternative sources of revenue.</p>

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

<p style="margin-top:0;margin-bottom:0"><i>National Long Distance
Service</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our national long
distance service business has been negatively affected by the growing number of
cellular subscribers in the Philippines and the widespread availability and
growing popularity of alternative economical non-voice methods of
communication, particularly text messaging and e-mail.  In addition, various ISPs
have launched voice services via the net to their subscribers nationwide.</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">While national long
distance call volumes have been declining, we have remained a leading provider
of national long distance service in the Philippines due to our significant
subscriber base and ownership of the Philippines&#146; most extensive transmission
network.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
launches from time to time promotions bundled with our other products to
attract new subscribers, including free PLDT-to-PLDT NDD service.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Data
and Other Network Services </p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Another
rapidly growing segment of the industry is the market for data and other
network services.  The growth is spurred by the significant growth in
consumer/retail narrowband and broadband internet access, enterprise resource
planning applications, customer interaction services, knowledge processing
solutions, on-line gaming and other e-services that drive the need for
broadband and internet-protocol based solutions both here and abroad.  Our
major competitors in this area are Globe/Innove, Bayan Telecommunications,
Eastern Telecoms and Digitel.  The principal bases of competition in data
services market are coverage, price/value for money, bundles or free gifts,
customer service and quality of service.  </p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286153"></a><a
name="_Toc75779210"></a><a name="_Toc46082269"></a><a name="_DV_M5729"></a><a
name="_DV_M5730"></a><a name="_DV_M5731"></a><a name="_DV_M5732"></a><a
name="_DV_M5733"></a><a name="_DV_M5742"></a><a name="_DV_M5743"></a><a
name="_DV_M5814"></a><a name="_DV_M5815"></a><a name="_DV_M4751"></a><a
name="_DV_M4753"></a><a name="_DV_M5824"></a><a name="_DV_M5826"></a><a
name="_DV_M5828"></a><a name="_DV_M5829"></a><a name="_DV_M5830"></a><a
name="_DV_M5832"></a><a name="_DV_M5833"></a><a name="_DV_M4768"></a><a
name="_DV_M4769"></a><a name="_DV_M4770"></a><a name="_DV_M4771"></a><a
name="_DV_M4773"></a><a name="_DV_M4774"></a><a name="_DV_M4775"></a><a
name="_DV_M4776"></a><a name="_DV_M5877"></a><a name="_DV_M4837"></a><a
name="_DV_M4840"></a><a name="_DV_M4841"></a><a name="_DV_M4922"></a><a
name="_DV_M4923"></a><a name="_DV_M4924"></a><a name="_DV_M4949"></a><a
name="_DV_M4953"></a><a name="_DV_M4954"></a><a name="_DV_M4955"></a><a
name="_DV_M5991"></a><a name="_DV_M5993"></a><a name="_DV_M5996"></a><a
name="_DV_M5997"></a><a name="_DV_M5998"></a><a name="_DV_M5999"></a><a
name="_DV_M5027"></a><a name="_DV_M5028"></a><a name="_DV_M5029"></a><a
name="_DV_M5030"></a><a name="_DV_M5066"></a><a name="_DV_M5068"></a><a
name="_DV_IPM159"></a><a name="_DV_IPM160"></a><a name="_DV_IPM161"></a><a
name="_DV_IPM162"></a><a name="_DV_ZIII2255"></a><a name="_DV_IPM163"></a><a
name="_DV_M5085"></a><a name="_DV_M6081"></a><a name="_DV_M6082"></a><a
name="_DV_M5101"></a><a name="_Environmental_Matters"></a><b>Environmental Matters</b></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
have not been subject to any material fines or legal or regulatory action
involving non-compliance with environmental regulations of the Philippines.  We are not aware that we are not in compliance in any material respect with
relevant environmental protection regulations.</p>

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

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286154"></a><a name="_Toc75779211"></a><a
name="_Toc46082270"></a><a name="_Intellectual_Property_Rights"></a><b>Intellectual Property Rights</b></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
do not own any material intellectual property rights apart from our brand names
and logos.  We are not dependent on patents, licenses or other intellectual
property which are material to our business or results of operations, other
than licenses to use the software that accompany most of our equipment
purchases.</p>

<p style='text-indent:.5in;line-height:8.0pt' 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_LINK12"></a><a
name="OLE_LINK1"></a><a name="_Toc170286155"></a><a name="_Toc75779212"></a><a
name="_Toc46082271"></a><a name="_Properties"></a><b>Properties</b></p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
own four office buildings located in Makati City and own and operate 228
exchanges nationwide, of which 48 are located in the Metropolitan Manila area.
The remaining 180 exchanges are located in cities and small municipalities
outside Metropolitan Manila area.  We also own radio transmitting and receiving
equipment used for international and domestic communications.  As at December
31, 2007, we had 5,001 cellular cell sites and 7,825 base stations.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">As
at December 31, 2007, our principal properties, excluding property under
construction, consisted of the following, based on net book values:</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
67% consisted of cable, wire and
cellular facilities, including our domestic fiber optic network, subscriber
cable facilities, inter-office trunking and toll cable facilities and cellular
facilities;</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
17% consisted of central office
equipment, including three international gateway facilities, six pure national
toll exchanges and 15 combined local and toll exchanges, and our communications
satellite;</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
11% consisted of land and
improvements and buildings, which we acquired to house our telecommunications
equipment, personnel, inventory and/or fleet;</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1% consisted of information
origination and termination equipment, including pay telephones and radio
equipment installed for customers use, and cables and wires installed within
customers' premises; and</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4% consisted of other work
equipment.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">For
more information on these properties, see <i>Note 8 &#150; Property, Plant and
Equipment</i> to the accompanying audited consolidated financial statements in
Item 18.  </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">These
properties are located in areas where our subscribers are being served.  In our
opinion, these properties are in good condition, except for ordinary wear and
tear, and are adequately insured.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
majority of our connecting lines are above or under public streets and
properties owned by others.</p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT's, Smart&#146;s and Piltel&#146;s properties are free from
any mortgage, charge, pledge, lien or encumbrance; however, substantial
properties of Mabuhay Satellite are subject to liens while a portion of ePLDT&#146;s
property is subject to liens.</p>

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

<p style='text-indent:35.0pt;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">On
February 1, 2008, SBI completed the acquisition of certain assets from Cruz
Telephone Company, Inc., or Cruztelco, a local exchange operator offering fixed
line services in North Eastern Mindanao.  Please see <i>Note 8 &#150; Property,
Plant and Equipment &#150; SBI&#146;s Acquisition of Cluster 3 Assets from Cruz Telephone
Company, Inc., or Cruztelco </i>in the accompanying audited consolidated
financial statements in Item 18 for further discussion.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
has various long-term lease contracts, the bulk of which have lease terms
ranging from two to ten years covering certain offices, warehouses,
telecommunications equipment locations and various office equipment.</p>

<p style='text-indent:.5in;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">For more information on the obligations relating to
these properties and long-term obligations, see <i>Note 24 &#150; Contractual
Obligations and Commercial Commitments </i>to the accompanying audited consolidated
financial statements in Item 18.</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-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><a name="_Toc170286156">Item 4A.    Unresolved Staff Comments</a></h2>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">None.</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"><a name="_Toc170286157"></a><a name="_Toc75779213"></a><a
name="_Toc46082272"><b>Item 5.       Operating
and Financial Review and Prospects</b></a></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>The
following discussion and analysis of our financial condition and results of
operations should be read in conjunction with our audited consolidated
financial statements (and the related notes) as at and for the years ended December
31, 2007 and 2006 included elsewhere in this report.  This discussion contains
forward-looking statements that reflect our current views with respect to
future events and our future financial performance.  These statements involve
risks and uncertainties, and our actual results may differ materially from
those anticipated in these forward-looking statements as a result of particular
factors such as those set forth under &quot;Forward-Looking Statements&quot;
and Item 3. &quot;Key Information &#151; Risk Factors&quot; and elsewhere in this
report.  Our audited consolidated financial statements, and the financial
information discussed below, have been prepared in accordance with IFRS</i><i>.  Since these are our first consolidated financial
statements prepared in accordance with IFRS, pursuant to the transitional
relief granted by the SEC in respect of the first-time adoption of IFRS, the
following is limited to a discussion of our financial condition and results of
operations for the years ended December 31, 2007 and 2006, and no comparative
data for the year ended December 31, 2005 have been included.  For further
details, please see &#147;Presentation of Financial Information&#148; above.</i><i>  For convenience, certain peso financial information
in the following discussions has been translated to U.S. dollars at the
exchange rate at December 31, 2007 of Php41.411 to US$1.00, as quoted through
the Philippine Dealing System.</i></p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286158"></a><a
name="_Toc75779214"></a><a name="_Toc46082273"><b>Overview</b></a></p>

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We are the largest and most diversified
telecommunications company in the Philippines.  We have organized our business
into three main segments which serve as the basis for management&#146;s decision to
allocate resources and evaluate operating performance:</p>

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

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Wireless</i> &#151; wireless
telecommunications services provided through our cellular service providers
namely, Smart and Piltel, SBI, our wireless broadband provider, and Wolfpac,
our wireless content operator, and Mabuhay Satellite and ACeS Philippines, our
wireless broadband satellite and other service operators;</p>

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

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Fixed Line</i> &#151; fixed line
telecommunications services primarily provided through PLDT.  We also provide
fixed line services through PLDT&#146;s subsidiaries ClarkTel, SubicTel, Maratel, Piltel
and BCC, PLDT Global and SNMI, which together account for approximately 3% of
our consolidated fixed line subscribers; and</p>

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

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Information and Communications
Technology</i> &#151; information and communications infrastructure and
services for internet applications, internet protocol-based solutions and
multimedia content delivery provided by ePLDT; customer interaction services
provided under the umbrella brand name <i>ePLDT Ventus</i>, including Ventus,
Parlance and Vocativ; knowledge processing solutions services provided through
the SPi Group (consolidated since July 11, 2006); and internet access and
online gaming services provided by ePLDT&#146;s subsidiaries Infocom, Digital
Paradise, Digital Paradise Thailand, netGames, Airborne Access and Level Up!, as
discussed in <i>Note 9 &#150; Investments in Associates and Joint Ventures </i>to
the accompanying audited consolidated financial statements in Item 18.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Key
performance indicators and drivers that our management uses for the management
of our business include, among others, the general economic conditions in the Philippines, our subscriber base, traffic volumes, and interconnection arrangements.</p>

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

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

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

<p style="margin-top:0;margin-bottom:0">We provide cellular and wireless
broadband, satellite and other services under our wireless business, with
cellular services contributing about 95% and the remaining wireless services
contributing approximately 5% of our wireless service revenues, respectively,
in 2007.  Rapid growth in the cellular market has resulted in a change in our
revenue composition and sources of our revenue growth.  Starting in 2003,
cellular service has been our major revenue source surpassing fixed line
revenues.  As at December 31, 2007, Smart and Piltel, which offers services
using Smart&#146;s network, had the largest and third largest cellular subscriber bases,
respectively, in the Philippines.  In 2007, Smart&#146;s and Piltel&#146;s subscribers
increased by 24%, resulting in our aggregate system-wide cellular subscribers
outnumbering our fixed line in service by more than 17 to 1 at the end of 2007.
However, while our cellular subscriber base continued to increase in 2007, this
increase was partly impacted by &#147;multiple-SIM card ownership&#148;, in which
subscribers subscribe to our services in addition to having subscriber
arrangements with other wireless operators, and our continued expansion in the
lower income segment of the Philippine wireless market, which overall resulted
in a decrease in our average revenue per user, or ARPU.  Cellular data
services, which include all text messaging and text-related services ranging
from ordinary text to value-added services, contributed significantly to our cellular
revenue increase.  Our total wireless revenues in 2007 increased by 12% from
2006 and accounted for 58% and 56%, respectively, of our total revenues for each
of the years ended December 31, 2007 and 2006.</p>

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

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

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Our
fixed line business provides local exchange service, international and national
long distance services, data and other network services and miscellaneous
services.  Our total fixed line revenues accounted for 35% and 39% of our total
revenues for the years ended December 31, 2007 and 2006, respectively.  Local
exchange and international long distance revenues have declined primarily due
to the appreciation of the Philippine peso to the U.S. dollar.  National long
distance revenues have also been declining largely due to a drop in call
volumes as a result of alternative means of communications such as texting,
e-mailing and internet telephony.  Mitigating these declines was the steady
growth of our data and other network services over the recent years.
Recognizing the growth potential of the data and other network services
segment, we have put considerable emphasis on the development of new
packet-switched, data-capable and IP-based networks.</p>

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
conduct our ICT businesses through ePLDT.  ePLDT&#146;s principal businesses are the
operation of an internet data center under the brand name <i>Vitro</i>TM;
customer interaction service businesses, including Ventus, Vocativ and Parlance,
under the brand name <i>ePLDT Ventus</i>; knowledge processing solutions provided
by SPi; internet and online gaming through Infocom, Digital Paradise and
Digital Paradise Thailand, netGames, Level Up! and Airborne Access.  The
revenue contribution of our information and communications technology segment
accounted for 7% and 5% of our total revenues for the years ended December 31,
2007 and 2006, respectively.  The increase in the revenue contribution from our
information and communication technology segment was primarily due to the results
of the full-year consolidation of the financial results of the SPi Group in
2007.<b> </b></p>

<p style='text-indent:.5in' 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>Critical Accounting Policies</b></p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">The preparation of our consolidated financial
statements in conformity with IFRS requires us to make judgments, estimates and
assumptions that affect the reported amounts of our revenues, expenses, assets
and liabilities and disclosure of contingent liabilities at the reporting
date.  Due to uncertainties inherent in these assumptions and estimates, actual
results and outcomes could differ from our assumptions and estimates.  We
believe the following represent our critical accounting policies under IFRS.
The impact and any associated risks relating to these policies in our business
operations are discussed elsewhere in this section.</p>

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

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

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">We have various lease agreements as a lessee in
respect of our certain equipment and properties.  We evaluate whether
significant risks and rewards of ownership of the leased properties are
transferred to us or retained at the lessor based on <i>IAS 17</i>,<i> &#147;Leases&#148;</i>,
which requires us to make judgments and estimates of transfer of risks and
rewards of ownership.  Total lease expense arising from operating leases
amounted to Php2,762 million and Php2,257 million for the years ended December
31, 2007 and 2006, respectively.  Total finance lease obligations as at
December 31, 2007 and 2006 amounted to Php496 million and Php1,030,
respectively.  See <i>Note 18 &#150; Interest-bearing Financial Liabilities, Note 24
&#150; Contractual Obligations and Commercial Commitments </i>and<i> Note 26 &#150;
Financial Assets and Liabilities </i>to the accompanying audited consolidated
financial statements in Item 18.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Determination
of fair values of financial assets and liabilities</i></p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">We carry certain of our financial assets and liabilities
at fair value, which requires extensive use of accounting estimates and
judgments for the fair values of financial assets and liabilities.  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>26 &#150; Financial Assets and Liabilities</i> to
the accompanying audited consolidated financial statements in Item 18.  While significant components of fair value
measurement were determined using verifiable objective evidence (i.e., foreign
exchange rates, interest rates and volatility rates), the amount of changes in
fair value would differ if we utilized a different valuation methodology.  Any
change in fair value of these financial assets and liabilities would directly
affect our consolidated statement of income and consolidated statement of
changes in equity.</p>

<p style='margin-left:0in;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">Total fair value of financial assets and liabilities
as at December 31, 2007 amounted to Php46,661 million and Php111,086 million,
respectively, while the total fair value of financial assets and liabilities as
at December 31, 2006 amounted to Php36,517 million and Php124,801 million,
respectively.  See <i>Note 26 &#150; Financial Assets and Liabilities</i> to the
accompanying audited consolidated financial statements in Item 18.</p>

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
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 25 &#150; Provisions and Contingencies</i>
to the accompanying audited consolidated financial statements in Item 18.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Estimating
useful lives of property, plant and equipment</i></p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">We estimate the useful lives of our property, plant
and equipment based on the periods over which our assets are expected to be
available for use.  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.  The
estimated useful lives of our property, plant and equipment are reviewed at
least at each financial year-end and are updated if expectations differ from
previous estimates due to physical wear and tear, technical or commercial
obsolescence and legal or other limitations on the use of our assets.  It is
possible, however, that future results of operations could be materially
affected by changes in our estimates brought about by changes in the 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.</p>

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">We recognized additional depreciation
charges of Php796 million and Php8,624 million in 2007 and 2006, respectively,
due to a change in the estimated useful lives of certain of our network assets
owing to continuing network upgrade and expansion.  The acceleration of
depreciation is expected to result in reduction of future monthly depreciation
amounting to Php10 million going forward.</p>

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Total carrying values of property, plant
and equipment, net of accumulated depreciation and amortization amounted to
Php159,414 million and Php164,190 million as at December 31, 2007 and 2006,
respectively.  See <i>Note 8 &#150; Property, Plant and Equipment </i>and <i>Note 26
&#150; Financial Assets and Liabilities</i> to the accompanying audited consolidated
financial statements in Item 18.</p>

<p style='margin-left:0in;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>Goodwill and intangible assets</i></p>

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Our consolidated financial statements and results of operations reflect
acquired businesses after the completion of the respective acquisition.  We
account for the acquired businesses using the purchase
method of accounting which requires extensive use of accounting estimates and
judgments to allocate the purchase price to the fair market values of the
acquiree&#146;s identifiable assets and liabilities at the acquisition date.  Any
excess in the purchase price over the estimated fair market values of the net
assets/liabilities acquired is recorded as goodwill in the balance sheet.  Our business acquisitions have resulted in goodwill
and intangible assets, which are subject to periodic impairment test and
amortization, respectively.  See <i>Note 11 &#150; Goodwill and Intangible Assets</i>
to the accompanying audited consolidated financial statements in Item 18.  Thus, the numerous judgments made in estimating the
fair market value to be assigned to the acquiree&#146;s assets and liabilities can
materially affect our results of operations.</p>

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Total carrying values of goodwill and
intangible assets as at December 31, 2007 and 2006 amounted to Php11,721
million and Php12,214 million, respectively.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Realizability
of deferred income tax assets</i></p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">We review the carrying amounts of deferred income tax
assets at each balance sheet date and reduce these to the extent that it is no
longer probable that sufficient taxable income will be available to allow all
or part of the deferred income tax assets to be utilized.  Our assessment on
the recognition of deferred income tax assets on deductible temporary
differences is based on the level and timing of forecasted taxable income of
the subsequent reporting periods.  This forecast is based on our past results
and future expectations on revenues and expenses as well as future tax planning
strategies.  However, there is no assurance that we will generate sufficient
taxable income to allow all or part of our deferred income tax assets to be
utilized.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Based on the above assessment, we have not recognized
certain of our deferred income tax assets as at December 31, 2007 and 2006 amounting
to Php1,122 million and Php299 million, respectively.  Total deferred tax
assets as at December 31, 2007 and 2006 amounted to Php13,757 million and
Php20,538 million, respectively, while total deferred tax liabilities as at
December 31, 2007 and 2006 amounted to Php2,066 million and Php402 million,
respectively.  See <i>Note 6 &#150; Income Tax</i> to the accompanying audited
consolidated financial statements in Item 18.</p>

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

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">We estimate the allowance for doubtful
accounts related to our trade receivables that are specifically identified as
doubtful of collection.  The level of allowance is evaluated by management on
the basis of factors that affect the collectibility of the accounts.  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 credit status based on third party credit reports and known
market factors, to record specific reserves for customers against amounts due
in order to reduce our receivables to amounts that we expect to collect.  These
specific reserves are re-evaluated and adjusted as additional information
received affect the amounts estimated.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">In addition to specific allowance against individually
significant receivables, we also assess a collective impairment allowance
against credit exposures of our customer which were grouped based on common
credit characteristic, which, although not specifically identified as requiring
a specific allowance, have a greater risk of default than when the receivables
were originally granted to customers.  This collective allowance is based on
historical loss experience using various factors such as historical performance
of the customers within the collective group, deterioration in the markets in
which the customers operate, and identified structural weaknesses or
deterioration in the cash flows of customers.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Impairment provision for receivable recognized in
consolidated statements of income amounted to Php417 million and Php736 million
for the years ended December 31, 2007 and 2006, respectively.  Trade and other
receivables, net of impairment, amounted to Php12,645 million and Php10,158
million as at December 31, 2007 and 2006, respectively.  See <i>Note 5 &#150; Income
and Expenses, Note 14 &#150; Trade and Other Receivables</i> and <i>Note 26 &#150;
Financial Assets and Liabilities</i> to the accompanying audited consolidated
financial statements in Item 18.</p>

<p style='margin-left:0in;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>Estimation of pension cost and other retirement
benefits</i></p>

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">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 23 &#150; Share-based Payments and Employee
Benefits</i> to the accompanying audited consolidated financial statements in
Item 18 and include, among other things, discount rates, expected returns on
plan assets and rates of compensation increases.  Actual results that differ
from our assumptions are recognized as income or expense when the net
cumulative unrecognized actuarial gains and losses at the end of the previous
reporting period exceed 10% of the higher of the defined benefit obligation and
the fair value of plan assets at that date.  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.  Total pension benefit
costs amounted to Php1,773 million and Php1,003 million for the years ended
December 31, 2007 and 2006, respectively.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Unrecognized net actuarial gain as at December 31,
2007 amounted to Php1,344 million and unrecognized net actuarial loss as at
December 31, 2006 amounted to Php4,657 million.  The accrued benefit costs as
at December 31, 2007 and 2006 amounted to Php2,985 million and Php2,888
million, respectively.  See <i>Note 23 &#150; Share-based Payments and Employee
Benefits</i> to the accompanying audited consolidated financial statements in
Item 18.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Share-based
payment transactions</i></p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">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 the results of operations for the year. The assumptions and
estimates are described in <i>Note 23 &#150; Share-based Payments and Employee
Benefits</i> to the accompanying audited consolidated financial statements in
Item 18 and include, among other things, annual stock volatility, risk free
interest rate, remaining life, and the fair value of common stock.  While
management believes that the assumptions and estimates used are reasonable and
appropriate, significant differences in our actual experience or significant
changes in the assumptions may materially affect the stock compensation costs
charged to operations.  The fair value of the LTIP recognized as an expense for
the years ended December 31, 2007 and 2006 amounted to Php1,448 million and
Php3,150 million, respectively.  As at December 31, 2007 and 2006, outstanding
LTIP liability amounted to Php1,494 million and Php5,030 million,
respectively.  See <i>Note 5 &#150; Income and Expenses</i> and <i>Note 23 &#150;
Share-based Payments and Employee Benefits</i> to the accompanying audited
consolidated financial statements in Item 18.</p>

<p style='margin-left:0in;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>Asset impairment</i></p>

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">IFRS requires that an impairment review
be performed when certain impairment indicators are present.  In the case of
goodwill, at a minimum, such asset is subject to an annual impairment test and
more frequently whenever there is an indication that such asset may be
impaired.  This requires an estimation of the value in use of the
cash-generating units to which the goodwill is allocated.  Estimating the value
in use requires us to make an estimate of the expected future cash flows from
the cash-generating unit and to choose a suitable discount rate in order to
calculate the present value of those cash flows.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Determining the fair values 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 consolidated financial statements.  Future
events could cause us to conclude that property, plant and equipment,
investments and intangible assets associated with an acquired business are
impaired.  Any resulting impairment loss could have a material adverse impact
on our financial condition and results of operations.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">The preparation of estimated future cash flows
involves significant judgments 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 IFRS.  Total impairment
charges for the years ended December 31, 2007 and 2006 amounted to Php1,317
million and Php2,766 million, respectively.  See <i>Note 4 &#150; Segment
Information</i> and <i>Note</i> 5 &#150; <i>Income and Expenses</i> to the
accompanying audited consolidated financial statements in Item 18.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">The carrying value of our property, plant and
equipment, investments in associates, goodwill and intangible assets, trade and
other receivables and inventories and supplies are separately disclosed in <i>Notes
8, 9, 11, 14 </i>and<i> 15</i> to the accompanying audited consolidated
financial statements in Item 18, respectively.</p>

<p style='margin-left:0in;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>Revenue recognition</i></p>

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

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Our agreements with domestic and foreign
carriers for inbound and outbound traffic subject to settlements require
traffic reconciliations before actual settlement is done, which may not be the
actual volume of traffic as measured by us.  Initial recognition of revenues is
based on our observed traffic adjusted by our normal experience adjustments,
which historically are not material to our consolidated financial statements.
Differences between the amounts initially recognized and the actual settlements
are taken up in the accounts upon reconciliation.  However, there is no assurance
that such use of estimates will not result in material adjustments in future
periods.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Revenues under a multiple element arrangement
specifically applicable to our wireless business are split into separately
identifiable components and recognized when the related components are
delivered in order to reflect the substance of the transaction.  The fair value
of components is determined using verifiable objective evidence.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
certain arrangements with our knowledge processing solutions services, if there
is uncertainty regarding the outcome of the transaction for which service was
rendered, revenue is recognized only to the extent of expenses incurred for
rendering the service and such amount is determined to be recoverable.</p>

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

<p style="margin-top:0;margin-bottom:0"><b>New Accounting
Pronouncements Effective Subsequent to 2007</b></p>

<p 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 2 &#150; Summary of Significant Accounting Policies and
Practices</i> to the accompanying audited consolidated financial statements in
Item 18 for a discussion of new accounting standards that will become effective
subsequent to December 31, 2007 and their anticipated impact on our
consolidated financial statements.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286160"></a><a
name="_Toc75779216"></a><a name="_Toc46082275"><b>Results
of Operations</b></a></p>

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

<p style="margin-top:0;margin-bottom:0">The following table shows the
contribution by each of our business segments to our total revenues, expenses
and net income (loss) for each of the years ended December 31, 2007 and 2006.
Most of our revenues are derived from our operations within the Philippines.  Our revenues derived from outside the Philippines consist primarily of
revenues from incoming international calls to the Philippines.</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:98.58%;border-collapse:collapse'>
 <tr style='height:18.9pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:18.9pt'>
 <p align=center style='margin-bottom:0in;margin-bottom:
 .0001pt;text-align:center;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:18.9pt'>
 <p align=center style='margin-left:.25in;text-align:center;
 text-indent:-.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Wireless</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:18.9pt'>
 <p align=center style='margin-left:.25in;text-align:center;
 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;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:18.9pt'>
 <p align=center style='margin-left:.25in;text-align:center;
 text-indent:-.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Fixed Line</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:18.9pt'>
 <p align=center style='margin-left:.25in;text-align:center;
 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;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:18.9pt'>
 <p align=center style='margin-left:.25in;text-align:center;
 text-indent:-.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">ICT</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:18.9pt'>
 <p align=center style='margin-left:.25in;text-align:center;
 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;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:18.9pt'>
 <p style='margin-left:1.6pt;text-indent:-1.6pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Inter-segment
 <br>
 Transactions</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:18.9pt'>
 <p align=center style='margin-left:.25in;text-align:center;
 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;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:18.9pt'>
 <p align=center style='margin-left:.25in;text-align:center;
 text-indent:-.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.15in'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=10 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:.15in'>
 <p align=center style='text-align:center;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">For the year ended December 31, 2007</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total
 Revenues</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php94,105</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php56,797</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php10,799</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php9,839)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php151,862</p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 text-indent:22.5pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Service</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">86,497</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48,551</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,055</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(9,627)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">135,476</p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 text-indent:22.5pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Non-service</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,800</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">281</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">267</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(122)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,226</p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 text-indent:22.5pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign
 exchange gains (losses) &#150;net</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,649</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,479</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style=';text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(138)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,990</p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 text-indent:22.5pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest
 Income</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,186</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">296</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">21</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,503</p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 text-indent:22.5pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other
 Income</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">973</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,190</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">594</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(90)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,667</p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Expenses</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">46,759</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">45,920</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,010</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(9,908)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">93,781</p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net
 Income (Loss)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31,780</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,519</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style=';text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(94)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">69</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">39,274</p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">For the year ended December 31, 2006</p>
 </td>
 <td   colspan=2 valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;
 height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total Revenues </p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">84,030</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">57,910</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,925</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(9,141)</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">139,724</p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='text-indent:22.5pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Service</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">78,395</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">49,174</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,337</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8,919)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">124,987</p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='text-indent:22.5pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Non-service</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,010</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">79</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">553</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(122)</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,520</p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='text-indent:22.5pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Foreign exchange gains (losses) <b>&#150; </b>net</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,722</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,210</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style=';text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(109)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,823</p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='text-indent:22.5pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Interest Income</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,197</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">441</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,654</p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='text-indent:22.5pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Other Income</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">706</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,006</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">128</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(100)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,740</p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Expenses</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">47,559</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">55,783</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,274</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(9,141)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">101,475</p>
 </td>
 </tr>
 <tr style='height:10.1pt'>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;line-height:
 8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net Income (Loss)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30,127</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,766</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style=';text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(312)</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;padding:
 0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E6E6E6;
 padding:0in 5.4pt 0in 5.4pt;height:10.1pt'>
 <p align=right style='text-align:right;line-height:8.0pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">32,581</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

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

<p style="margin-top:0;margin-bottom:0"><b>2007 Compared to 2006</b></p>

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

<p style="margin-top:0;margin-bottom:0"><b>On a Consolidated Basis</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-top:0;margin-bottom:0"><b><i>Total Revenues</i></b></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our total
revenues for 2007 increased by Php12,138 million, or 9%, to Php151,862 million
from Php139,724 million in 2006.  This
increase was primarily due to (i) an increase in our service revenues primarily
resulting from the continued growth of our wireless business and an increase in
our ICT revenues largely due to the effects of the full-year consolidation of the
financial results of SPi, CyMed and Level Up! and the continued increase in our
customer interaction service revenues, which was partially offset by a
continued decrease in our fixed line revenues; and (ii) an increase in foreign
exchange gains, primarily due to the effect of foreign exchange revaluation as
a result of the higher level of appreciation of the Philippine peso in 2007,
which was partially offset by a decrease in our other income primarily
resulting from a recognition in 2006 in our fixed line business of a net
reversal of provision for onerous contract related to the ATPA with AIL.  The revenue contribution of our wireless business
accounted for 62% and 60% of our total revenues for 2007 and 2006, respectively.</p>

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows the breakdown of our total revenues
for the years ended December 31, 2007 and 2006 by business segment:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=13 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:1.55pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December
 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt;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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Change</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt;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;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt;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;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt;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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt;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;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(in
 millions)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Wireless </p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:6.7pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php94,105</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">62</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php84,030</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">60</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php10,075</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Fixed line</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:6.7pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">56,797</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">37</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">57,910</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">41</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 text-indent:9.35pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,113)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Information and communications
 technology </p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:6.7pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,799</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,925</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,874</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">56</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Inter-segment transactions</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(9,839)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(9,141)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 text-indent:9.35pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(698)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:6.7pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php151,862</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;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;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php139,724</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php12,138</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our total
expenses in 2007 decreased by Php7,694 million, or 8%, to Php93,781 million
from Php101,475 million in 2006.  This decrease was primarly due to lower
financing costs on account of lower accretion of financial liabilities
complemented by lower loss on derivative transactions and loans and related
items and lower depreciation and amortization, which was partially offset by an
increase in professional and other contracted services and compensation and
employee benefits.  As a percentage of our total revenues, total expenses decreased
to 62% in 2007 from 73% in 2006.</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 shows the breakdown of our total expenses
for the years ended December 31, 2007 and 2006 by business segment:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=12 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:1.55pt' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' 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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>Change</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' 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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' 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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' 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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' 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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' 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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=12 valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Wireless </p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:6.7pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Php46,759</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Php47,559</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">47</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">(Php800)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Fixed line</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:6.7pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">45,920</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">55,783</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">55</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">(9,863)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">(18)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Information and communications technology </p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:6.7pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">11,010</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">7,274</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">3,736</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">51</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Inter-segment transactions</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">(9,908)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:.7pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">(11)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='text-align:right;text-indent:9.35pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0">(9,141)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:.7pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">(9)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">(767)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.25pt'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:6.25pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#D9D9D9;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:6.7pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Php93,781</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#D9D9D9;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 2.25pt;background:#D9D9D9;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Php101,475</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#D9D9D9;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#D9D9D9;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">(Php7,694)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#D9D9D9;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">(8)</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:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Provision for Income Tax</i></b></p>

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

<p style="margin-top:0;margin-bottom:0">Provision for income tax
increased by Php13,139 million, or 232%, to Php18,807 million in 2007 compared
to Php5,668 million in 2006 mainly due to the reversal in 2006 of a valuation
allowance of deferred tax assets in relation to the likelihood that Piltel
would be able to realize the future benefits on these assets in 2006 and lower
accelerated depreciation recognized in 2007.
</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"><b><i>Consolidated Net Income</i></b></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As a
result, our consolidated net income in 2007 was Php39,274 million, an increase
of Php6,693 million, or 21%, compared to Php32,581 million in 2006.  The
following table shows the breakdown of our consolidated net income for the
years ended December 31, 2007 and 2006 by business segment:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.96%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:1.55pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December
 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Change</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' 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;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' 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;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' 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;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' 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;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' 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;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' 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:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' 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;height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center;text-indent:9.0pt;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Wireless </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:10.55pt;text-align:right;
 text-indent:2.65pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Php31,780</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">81</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:10.2pt;text-align:right;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0">Php30,127</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">92</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 text-indent:1.45pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Php1,653</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Fixed line</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:10.55pt;text-align:right;
 text-indent:2.65pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">7,519</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">19</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:10.2pt;text-align:right;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0">2,766</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 text-indent:1.45pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">4,753</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">172</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Information and communications technology </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:7.9pt;text-align:right;
 text-indent:2.9pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">(94)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:7.9pt;text-align:right;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0">(312)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=center style=';text-align:center;
 text-indent:9.35pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 text-indent:1.45pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">218</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.35pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">(70)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Inter-segment transactions</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:10.55pt;text-align:right;
 text-indent:2.65pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">69</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:10.2pt;text-align:right;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=center style=';text-align:center;
 text-indent:9.35pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 text-indent:1.45pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">69</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Total</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:10.55pt;text-align:right;
 text-indent:2.65pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Php39,274</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' 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:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' 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:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:10.2pt;text-align:right;
 line-height:8.0pt' style="margin-top:0;margin-bottom:0">Php32,581</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' 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:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' 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:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 text-indent:1.45pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">Php6,693</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' 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:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 text-indent:9.0pt;line-height:8.0pt' style="margin-top:0;margin-bottom:0">21</p>
 </td>
 </tr>
</table></center></div>

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

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

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

<p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b>Wireless</b></p>

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

<p style='text-indent:22.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Total Revenues</i></b></p>

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Our wireless business segment offers
cellular services as well as wireless broadband, satellite and other services.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
following table summarizes our total revenues from our wireless business for
the years ended December 31, 2007 and 2006 by service segment:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:98.98%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p 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:9.35pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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;
 height:9.35pt'>
 <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;
 height:9.35pt'>
 <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;
 height:9.35pt'>
 <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;
 height:9.35pt'>
 <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;
 height:9.35pt'>
 <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;
 height:9.35pt'>
 <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;
 height:9.35pt'>
 <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;height:9.35pt'>
 <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;height:9.35pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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:9.35pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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;height:9.35pt'>
 <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;
 height:9.35pt'>
 <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;height:9.35pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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;height:9.35pt'>
 <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;
 height:9.35pt'>
 <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;height:9.35pt'>
 <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;
 height:9.35pt'>
 <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;height:9.35pt'>
 <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:9.35pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0">Wireless
 services:</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-right:13.2pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Service
 Revenues</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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:9.35pt'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-left:13.5pt;text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Cellular </p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php82,334</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">88</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php75,617</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">90</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">Php6,717</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#D9D9D9;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-left:13.5pt;text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Wireless broadband, satellite and others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,163</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <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=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,778</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1,385</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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;background:
 #D9D9D9;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">86,497</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' border:none;background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">92</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' border:none;background:
 #D9D9D9;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">78,395</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">93</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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;background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">8,102</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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;background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-left:4.5pt;text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Non-service Revenues</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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:9.35pt'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-left:4.5pt;text-indent:.25in' style="margin-top:0;margin-bottom:0">Sale of cellular handsets
 and SIM-packs</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,800</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,010</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">790</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">39</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-left:4.5pt;text-indent:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-left:4.5pt;text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Foreign exchange gains &#150; net</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,649</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,722</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">927</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-left:4.5pt;text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Interest Income</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,186</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,197</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(11)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">973</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">706</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#D9D9D9;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">267</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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:solid windowtext 1.0pt;
 background:#D9D9D9;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0">Total
 Wireless Revenues </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php94,105</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.35pt'>
 <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=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php84,030</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">Php10,075</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:4.3pt;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">&nbsp;</p>

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

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Our wireless service revenues increased
by Php8,102 million, or 10%, to Php86,497 million in 2007 compared to Php78,395
million in 2006, mainly as a result of the continued growth in the cellular and
wireless broadband subscriber base, an increase in inbound international
traffic and inbound roaming revenues, partially offset by an increase in
interconnection costs and the unfavorable effect of the appreciation of the
Philippine peso on our dollar-linked revenues.  As a percentage of our total wireless
revenues, service revenues contributed 92% in 2007 as compared to 93% in 2006.</p>

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

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

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Unless otherwise indicated, the financial data and
operating metrics cited in the cellular service section reflect the
consolidated results of our cellular subsidiaries, Smart and Piltel.</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">Our
cellular service revenues consist of: (i) 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 content costs and discounts given to
dealers and retailers; (ii) monthly service fees from postpaid subscribers,
including: (a) toll charges for national and international long distance calls;
(b) charges for calls and text messages in excess of allocated free local calls
and text messages, respectively; and (c) charges for value-added services, net
of related content provider costs; (iii) 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 services; and (iv) other charges, including those for
reconnection and migration.</p>

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our cellular service revenues in 2007 amounted to
Php82,334 million, an increase of Php6,717 million, or 9%, from Php75,617
million in 2006.  Cellular service revenues accounted for 95% of our wireless
service revenues in 2007 as compared to 96% in 2006.  The increase in cellular
service revenues was primarily due to the continued growth of Smart&#146;s and
Piltel&#146;s subscriber base.  As at December 31, 2007, Smart and Piltel cellular
subscribers totaled 30,041,030, an increase of 5,865,646, or 24%, over their
combined cellular subscriber base of 24,175,384 as at December 31, 2006.  However,
while our cellular subscriber base continued to increase in 2007, this increase
was partly impacted by &#147;multiple-SIM card ownership&#148;, in which subscribers
subscribe to our services in addition to having subscriber arrangements with
other wireless operators, and our continued expansion in the lower income
segment of the Philippine wireless market, which overall resulted in a decrease
in our average revenue per user, or ARPU.  While our combined cellular
subscriber base continued to increase in the first two months of 2008 and
reached 31,130,236 as at February 29, 2008, we expect that our combined
cellular subscriber base in 2008 will increase at a lower pace than in previous
years and that such increase will continue to be partly impacted by &#147;multiple-SIM
card ownership&#148; and our continued expansion in the lower income segment of the
Philippine wireless market.</p>

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

<p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The table below shows our cellular subscribers base as
at December 31, 2007 and 2006:</p>

<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:85.22%;margin-left:31.5pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:4.5pt;margin-bottom:.0001pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=7 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>As at December 31,</b></p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2007</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>2006</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style=';text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30,041,030</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24,175,384</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,865,646</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#D9D9D9;
 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">Prepaid </p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">29,699,150</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">23,856,821</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 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=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,842,329</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 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=' background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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' style="margin-top:0;margin-bottom:0">Smart </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">19,997,324</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">16,882,442</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,114,882</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#D9D9D9;
 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' style="margin-top:0;margin-bottom:0">Piltel</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">9,701,826</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,974,379</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 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=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,727,447</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 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=' background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">39</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top: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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">341,880</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">318,563</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">23,317</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Of our 30,041,030 subscribers as at December 31, 2007,
prepaid subscribers accounted for approximately 99% while postpaid subscribers
accounted for the remaining 1%.  Our cellular prepaid subscriber base grew by 24%
to 29,699,150 as at December 31, 2007 from 23,856,821 as at December 31, 2006,
whereas our postpaid subscriber base increased by 7% to 341,880 as at December
31, 2007 from 318,563 as at December 31, 2006.  Smart&#146;s prepaid and postpaid
net subscriber activations totaled 3,114,882 and 23,317, respectively, in 2007,
or a quarterly average addition of 778,721 prepaid and 5,829 postpaid
subscribers.  On the other hand, Piltel&#146;s prepaid subscribers increased by 39%
to 9,701,826 as at December 31, 2007 from 6,974,379 as at December 31, 2006, or
a quarterly average addition of 681,862 subscribers.  Postpaid subscribers as
at December 31, 2007 were higher than as at December 31, 2006 primarily due to
increased net activations in the last two quarters of 2007.</p>

<p style='line-height:8.0pt' 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">Our quarterly net subscriber activations over the
eight quarters in 2007 and 2006 are as follows:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;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=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>2007</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   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>2006</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:13.5pt;margin-bottom:.0001pt;text-align:justify;text-indent:
 -9.0pt;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=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>1Q</b></p>
 </td>
 <td   style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:5.4pt;text-indent:-5.4pt;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'>
 <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 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"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>3Q</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:4.25pt;text-align:center;
 text-indent:-4.25pt;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 0in 0in 0in'>
 <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 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;padding:0in 0in 0in 0in'>
 <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 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-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>2Q</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border: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>3Q</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:4.5pt;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'>
 <p align=center style='margin-right:1.45pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4Q</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:13.5pt;margin-bottom:.0001pt;text-align:justify;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'>
 <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=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=' border:none;border-top:
 solid windowtext 1.0pt;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=' border:none;border-top: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=' 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=' border:none;border-top: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=' 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=' border:none;border-top:
 solid windowtext 1.0pt;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   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 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=' border:none;border-top:solid windowtext 1.0pt;
 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   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=' border:none;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=' background:#D9D9D9;
 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=top style=' background:#D9D9D9;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">1,301,154</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;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">1,615,246</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;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">1,148,283</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 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=' background:#D9D9D9;
 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">1,777,646</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;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">486,009</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;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">1,553,570</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;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">450,553</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,238,146</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=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">880,281</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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">1,050,678</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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">763,257</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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">420,666</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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">111,987</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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">851,326</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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">131,486</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">643,525</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#D9D9D9;
 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=top style=' background:#D9D9D9;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">420,873</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;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">564,568</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;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">385,026</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 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=' background:#D9D9D9;
 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">1,356,980</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;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">374,022</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;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">702,244</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;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">319,067</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">594,621</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">&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">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;
 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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#D9D9D9;
 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 </p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;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">6,921</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;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">7,403</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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:none;border-bottom:solid windowtext 1.0pt;
 background:#D9D9D9;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">5,704</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 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:
 solid windowtext 1.0pt;background:#D9D9D9;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">3,289</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;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">5,001</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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:none;border-bottom:solid windowtext 1.0pt;
 background:#D9D9D9;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">11,955</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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:none;border-bottom:solid windowtext 1.0pt;
 background:#D9D9D9;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">13,722</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,807</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;background:#F3F3F3;
 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=' background:#F3F3F3;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   style=' border:none;background:#F3F3F3;
 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=' background:#F3F3F3;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:none;background:#F3F3F3;
 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=' background:#F3F3F3;
 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;background:#F3F3F3;
 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=' background:#F3F3F3;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:none;background:#F3F3F3;
 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=' background:#F3F3F3;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   style=' border:none;background:#F3F3F3;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=' background:#F3F3F3;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:none;background:#F3F3F3;
 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=' background:#F3F3F3;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;background:
 #F3F3F3;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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#D9D9D9;
 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">Total</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;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">1,308,075</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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   style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#D9D9D9;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">1,622,649</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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:none;border-bottom:double windowtext 1.5pt;
 background:#D9D9D9;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">1,153,987</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 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 1.5pt;background:#D9D9D9;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">1,780,935</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;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">491,010</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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   style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#D9D9D9;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">1,565,525</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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:none;border-bottom:double windowtext 1.5pt;
 background:#D9D9D9;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">464,275</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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 1.5pt;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,245,953</p>
 </td>
 </tr>
</table></center></div>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Wireless Broadband, Satellite and Other Services</i></p>

<p style='line-height:9.0pt' 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 revenues from wireless broadband,
satellite and other services consist mainly of rentals received for the lease
of Mabuhay Satellite&#146;s transponders, wireless broadband service revenues from
SBI, charges for ACeS Philippines&#146; services and service revenues from PLDT
Global subsidiary&#146;s mobile virtual network operations.  SBI offers a number of wireless broadband services and
had 301,738 subscribers as at December 31, 2007.    </p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Gross service revenues from these services for 2007
amounted to Php4,163 million, an increase of Php1,385 million, or 50%, from
Php2,778 million in 2006.  This increase was primarily due to the growth in our
wireless broadband business resulting primarily from a continued growth in our
wireless broadband subscriber base.</p>

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

<p style='margin-left:0in;text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Non-service Revenues</i></p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our wireless non-service revenues consist of proceeds
from sales of cellular handsets and cellular SIM-packs.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our wireless non-service revenues increased by Php790 million, or 39%,
to Php2,800 million in 2007 as compared to Php2,010 million in 2006 primarily
due to higher volume of cellular SIM-packs sold in 2007 partly offset by a lower
volumes of postpaid and prepaid handsets sold and lower average revenues per
cellular handset and cellular SIM-pack.    </p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Foreign Exchange Gains &#150; Net</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our net
wireless foreign exchange gains increased by Php927 million, or 54%, to
Php2,649 million in 2007 as compared to Php1,722 million in 2006 primarily due
to the effect of foreign exchange revaluation as a result of the higher level
of peso appreciation to the U.S. dollar in 2007 as compared to 2006.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Interest Income</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 interest income decreased by Php11
million, or 1%, to Php1,186 million in 2007 as compared to Php1,197 million in
2006 primarily due to lower interest rates.</p>

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

<p style='margin-left:0in;text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Other Income </i></p>

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

<p style='text-indent:.5in' 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 Php973
million in 2007, an increase of Php267 million, or 38%, as compared to Php706
million in 2006.  </p>

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

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left;
text-indent:.3in;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Expenses</i></h6>

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Expenses associated with our wireless
business in 2007 amounted to Php46,759 million, a decrease of Php800 million,
or 2%, from Php47,559 million in 2006.  A significant portion of this decrease
was attributable to lower financing costs and a decrease in asset impairment,
compensation and benefits expense and cost of sales, partially offset by an
increase in depreciation and amortization, professional and other contracted
services, rent expense and selling and promotion expenses.  As a percentage of
our total wireless revenues, expenses associated with our wireless business
decreased to 50% in 2007 from 57% in 2006.   </p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Cellular business expenses accounted for 93% while
wireless broadband, satellite and other business expenses accounted for 7% of
our wireless business expenses in 2007, compared to 89% and 11%, respectively,
in 2006.</p>

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table summarizes our wireless-related
expenses for the years ended December 31, 2007 and 2006 and the percentage of
each expense item to the total:</p>

<p style='margin-left:0in;text-indent:.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:95.2%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=11 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=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=' 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>2007</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>2006</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"><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>Amount</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>%</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=11 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>(in millions)</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">Wireless services</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php12,202</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">26</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php10,752</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">23</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">Php1,450</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">13</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,751</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">19</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,887</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">864</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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">11</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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(1)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,608</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,041</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">(433)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(9)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.65pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Costs of cellular handsets and SIM-packs sold</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">4,285</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;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">9</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;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">4,688</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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">10</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:7.65pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(403)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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">(9)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.65pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Selling and promotions</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">3,804</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;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">8</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;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">3,013</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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">6</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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">791</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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">26</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.65pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Repairs and maintenance</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">3,634</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;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">8</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;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">3,646</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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">8</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:7.65pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(12)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Professional and other contracted services</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,369</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,779</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">590</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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">33</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,299</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,658</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">(2,359)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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">(51)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,348</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,018</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">330</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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">32</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Communication, training and travel</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,083</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">891</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">192</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">22</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">783</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">797</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">(14)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asset impairment </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">563</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,220</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">(1,657)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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">(75)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost of satellite air time</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">160</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=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=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">199</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(39)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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">(20)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Amortization of intangible assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">158</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">312</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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">(154)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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">(49)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Gain
 on derivative transactions</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(278)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(39)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">(239)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">613</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Other
 expenses</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">990</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">697</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">293</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0">Total
 </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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">Php46,759</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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;background:#E0E0E0;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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">Php47,559</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:3.5pt'>
 <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=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php800)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;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">(2)</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:.25in;text-indent:-.25in;line-height:
3.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0"><i>(1)  Includes salaries and
employee benefits, incentive plan, pension and manpower rightsizing program, or
MRP, costs.</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Depreciation
and amortization charges increased by Php1,450 million, or 13%, to Php12,202
million in 2007 principally due to an increase in our depreciable asset base
comprised mainly of transmission facilities, 2G, 3G and broadband networks, and
broadband customer-deployed equipment.  We
expect our depreciation and amortization expenses to futher increase in line
with our expected increase in capital expenditures in 2008.  For further details, see <i>Note 8 &#150; Property, Plant
and Equipment</i> to the accompanying audited consolidated financial statements
in Item 18.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Rent expenses increased by Php864 million, or 11%, to
Php8,751 million on account of an increase in domestic fiber optic network, or
DFON, facilities and transmission circuits leased by Smart from PLDT, as well
as higher site rental expenses.  In 2007, we had 5,001 GSM cell sites and 7,825
base stations, compared with 4,377 GSM cell sites and 6,099 base stations in
2006.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Compensation and employee benefits expenses decreased
by Php433 million, or 9%, to Php4,608 million primarily due to higher accrued
LTIP costs in 2006 as a result of the early vesting of the LTIP in 2006, partly
offset by higher accrued bonuses and employees&#146; basic pay increase of Smart.
Smart and subsidiaries&#146; employee headcount increased by 57 to 5,363 in 2007 as
compared to 5,306 in 2006.  For further
discussion on our long-term incentive plan, please see Item 6. &#147;Directors,
Senior Management and Employees &#150;&#150; Long-Term Incentive Plan&#148; and <i>Note 23 &#150;
Share-based Payments and Employee Benefits</i> to the accompanying audited consolidated
financial statements in Item 18.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Cost
of cellular handsets and SIM-packs sold decreased by Php403 million, or 9%, to
Php4,285 million primarily due to a decrease in the volume of phone kits sold.
</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Selling and promotion expenses increased by Php791
million, or 26%, to Php3,804 million due to higher advertising, merchandising
and commission expenses, partly offset by a decrease in printing costs of
prepaid cards with the prevalence of e-loading.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Repairs and maintenance expenses decreased by Php12
million to Php3,634 million mainly due to lower repairs and maintenance costs
for network facilities and a decrease in fuel costs for power generation,
partly offset by an increase in IT software and hardware repairs and
maintenance costs, as well as higher electricity cost for cell sites.</p>

<p style='margin-left:0in;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">Professional and other contracted services increased
by Php590 million, or 33%, to Php2,369 million primarily due to higher expenses
for consultancy, contracted and technical services, market research and
advisory fees in respect of investment evaluations in our cellular business.  </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">We recognized financing costs of Php2,299
million in 2007, a decrease of Php2,359 million, or 51%, as compared to Php4,658
million in 2006 on account of lower accretion on financial liabilities due to
the settlement of Piltel&#146;s debt in 2006 and lower dividend on convertible preferred
stock that is subject to mandatory redemption due to lower level of outstanding
convertible preferred stock as compared to 2006, partly offset by lower
capitalized interest.  The breakdown of our financing costs for our wireless
business for the years ended December 31, 2007 and 2006 is as follows:</p>

<p style='text-indent:.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: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  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  colspan=3 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>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>2007</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>2006</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>
 <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=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=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=' background:#E0E0E0;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">Interest on loans and related items</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php1,581</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php1,634</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php53)</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:12.6pt;text-indent:-12.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accretion on financial liabilities &#150; net</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">877</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,105</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,228)</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(72)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;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">Financing charges</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">37</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(25)</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(68)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">130</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(113)</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(87)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(188)</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(248)</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">60</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(24)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&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;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php2,299</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php4,658</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php2,359)</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&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;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(51)</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 Php330 million, or 32%, to Php1,348 million primarily
due to higher non-creditable input tax and the payment of previously disputed NTC
licenses and fees, partly offset by lower business-related taxes and licenses.
</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Communication,
training and travel expenses increased by Php192 million, or 22%, to Php1,083
million mainly due to higher mailing and courier charges, and increased travel
and training activities.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Insurance and security services decreased by Php14
million, or 2%, to Php783 million primarily
due to the decrease in site security expenses and lower charges on insurance
contracts.</p>

<p style='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 Php1,657 million, or 75%, to Php563 million due to the
recognition by Mabuhay Satellite in 2006 of an asset impairment charge as a
result of the reduction in value of the Agila II satellite given the difficulty
in generating cash flows with the satellite nearing its end-of-life and other
events affecting its business and lower levels of impairment charge in 2007 for
subscriber accounts receivables.</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">Cost
of satellite air time decreased by Php39 million, or 20%, to Php160 million due
to a reduction of satellite air time cost as a result of the continued appreciation
of the Philippine peso in 2007.  See <i>Note 22 &#150; Related Party Transactions</i>
to the accompanying audited consolidated financial statements in Item 18.   </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Amortization
of intangible assets decreased by Php154 million, or 49%, to Php158 million
mainly due to the full amortization of intangible assets relating to technology
application and customer lists, which were recognized following the acquisition
of Wolfpac and SBI in November 2006 and August 2007, 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">Gain
on derivative transactions increased by Php239 million, or 613%, to Php278
million primarily due to a Php270 million gain on US$ forward exchange contracts
entered into by Smart in 2007 to hedge U.S. dollar-linked revenues and loan
proceeds from an undrawn loan facility and an Php8 million gain on embedded
derivatives.  Gain of Php39 million in 2006 was on embedded derivatives
relating to service and purchase contracts.</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">Other expenses increased by Php293 million, or 42%, to
Php990 million primarily due to higher various business and operational-related
expenses.</p>

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

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

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Provision for income tax increased by Php9,222
million, or 145%, to Php15,566 million in 2007 from Php6,344 million in 2006.
In 2007, the effective tax rate for our wireless business was 33% as compared
to 17% in 2006 mainly due to the recognition of deferred tax assets of Piltel
in 2006 complemented by higher taxable income in 2007.  We currently expect
that our effective corporate tax rate  will be at a similar level in 2008.
Furthermore, while the National Internal Revenue Code provides that our regular
income tax rate will be reduced to 30% effective January 1, 2009, there can be
no assurance whether and when such reduction in the regular corporate income
tax rate will be implemented.  </p>

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
wireless business segment recorded a net income of Php31,780 million in 2007,
an increase of Php1,653 million, or 5%, over Php30,127 million registered in
2006 on account of higher cellular revenues complemented by slightly lower
expenses, partially offset by a higher provision for income tax.</p>

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

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left;
text-indent:.3in;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">Fixed Line</h6>

<p style='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>Total Revenues </i></b></p>

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">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 2007 totaled Php56,797 million, a
decrease of Php1,113 million, or 2%, from Php57,910 million in 2006.  As a
percentage of our total revenues, fixed line revenue decreased to 35% in 2007
from 39% in 2006.</p>

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table summarizes total revenues from our
fixed line business for the years ended December 31, 2007 and 2006,
respectively, 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:93.24%;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>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   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 (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>2007</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>2006</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   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=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>(in millions)</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 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=' background:#D9D9D9;
 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=' background:#D9D9D9;
 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=' background:#D9D9D9;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=' background:#D9D9D9;
 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=' background:#D9D9D9;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=' background:#D9D9D9;
 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=' background:#D9D9D9;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=' background:#D9D9D9;
 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=' background:#D9D9D9;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=' background:#D9D9D9;
 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=' background:#D9D9D9;
 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=' background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.65pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.65pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.65pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:7.65pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.65pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:7.65pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.65pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:7.65pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.65pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:7.65pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 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   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.65pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.65pt'>
 <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=' background:#D9D9D9;
 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">Local exchange</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php16,205</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 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=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php16,963</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 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=' background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 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">(Php758)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(4)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">International long distance</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,674</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,933</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 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</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 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">(1,259)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(13)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#D9D9D9;
 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">National long distance</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,338</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 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</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,921</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 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=' background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 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">(583)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;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=' background:#F3F3F3;
 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">Data and other network</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15,921</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 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</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,725</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 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</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 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">2,196</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#D9D9D9;
 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">Miscellaneous</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,413</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 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=' background:#D9D9D9;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;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,632</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 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>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#D9D9D9;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">(219)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;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">(13)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48,551</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <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=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">49,174</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#F3F3F3;padding:0in 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">(623)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#D9D9D9;
 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">Non-Service Revenues</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right 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=' background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 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">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:4.5pt;text-indent:13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Sale
 of computers</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">281</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">79</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:7.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">202</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">256</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:4.5pt;text-indent:4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:7.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#D9D9D9;
 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">Foreign Exchange Gains &#150; Net</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,479</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 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=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,210</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 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">2,269</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">71</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#D9D9D9;
 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">Interest Income</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">296</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 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=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">441</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 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=top style=' background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 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">(145)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 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">(33)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,190</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 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</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,006</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 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">(2,816)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(56)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0">Total
 Fixed Line Revenues </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php56,797</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;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=' border:none;
 border-bottom:double windowtext 2.25pt;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php57,910</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;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=' border:none;
 border-bottom:double windowtext 2.25pt;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' border:none;
 border-bottom:double windowtext 2.25pt;background:#D9D9D9;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">(Php1,113)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#D9D9D9;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">(2)</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='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="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.25in' style="margin-top:0;margin-bottom:0"><i>Local
Exchange Service</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
local exchange service revenues consist of: (i) flat monthly fees for our
postpaid and fixed charges for our bundled voice and data services; (ii) amortization
of installation charges and other one-time fees associated with the
establishment of customer service; (iii) revenues from usage of prepaid cards
for calls within the local area and any unused peso value of expired prepaid
cards; and (iv) charges for special features, including bundled value-added
services such as call waiting, call forwarding, multi-party conference calling,
speed calling and caller ID.  </p>

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table summarizes key measures of our local
exchange service business segment as at and for the years ended December 31,
2007 and 2006, respectively:</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:101.0%;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>Years Ended December
 31, </b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   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=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-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 (Decrease)</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2007</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>2006</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr>
 <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=8 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.3pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total local exchange service revenues (in millions)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php16,205</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php16,963</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(Php758)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(4)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a
 name="_Hlk172452279">Number of fixed line
 subscribers</a></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,724,702</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,776,647</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(51,945)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Postpaid</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,479,647</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,450,331</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.35pt;text-align:right' style="margin-top:0;margin-bottom:0">29,316</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.35pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Prepaid</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">245,055</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">326,316</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(81,261)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(25)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Number of fixed line employees</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,080</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,711</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(631)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">(7)</p>
 </td>
 </tr>
 <tr style='height:7.65pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.65pt'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0">Number
 of fixed line subscribers per employee</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.65pt'>
 <p align=right style='margin-right:2.3pt;text-align:right' style="margin-top:0;margin-bottom:0">213</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:7.65pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.65pt'>
 <p align=right style='margin-right:2.3pt;text-align:right' style="margin-top:0;margin-bottom:0">204</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:7.65pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.65pt'>
 <p align=right style='margin-right:9.35pt;text-align:right' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:7.65pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.65pt'>
 <p align=right style='margin-right:9.35pt;text-align:right' style="margin-top:0;margin-bottom:0">4</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='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Revenues from our local exchange service decreased by
Php758 million, or 4%, to Php16,205 million in 2007 from Php16,963 million in
2006.  The decrease was primarily due to the appreciation of the Philippine peso
which required us to make further downward adjustments in our monthly local
service rates pursuant to the currency exchange rate adjustment mechanism
authorized by the NTC as described in Item 4. &#147;Information on the Company &#150;
Business &#150; Fixed Line &#150; Local Exchange Service &#150; Rates&#148; and the decrease in prepaid subscribers, partially
offset by an increase in postpaid subscribers.  The percentage contribution of
local exchange revenues to our total fixed line service revenues decreased to
33% in 2007 as compared to 35% in 2006.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2007, postpaid and prepaid fixed line subscribers totaled 1,479,647
and 245,055, respectively, which accounted for approximately 86 % and 14 %,
respectively, of our total fixed line subscribers.</p>

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

<p style='text-indent:22.5pt' 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' style="margin-top:0;margin-bottom:0">Our
international long distance service revenues, which we generate through our
international gateway facilities, consist of: (i) 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; (ii) access
charges paid to us by other Philippine telecommunications carriers for
terminating inbound international calls to our local exchange network; and (iii)
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 align=right style='margin-right:4.7pt;text-align:right;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows information about our
international fixed line long distance business for the years ended December
31, 2007 and 2006, respectively:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:94.24%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=7 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2007</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>2006</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total international
 long distance service revenues (in millions)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Php8,674</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Php9,933</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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">(Php1,259)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(13)</p>
 </td>
 </tr>
 <tr style='height:.1in'>
 <td   valign=bottom style=' background:#D9D9D9;
 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=' background:#D9D9D9;
 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">7,127</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;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=' background:#D9D9D9;
 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">8,378</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">(1,251)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;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">(15)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,547</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,555</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">(8)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,280</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,177</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.4pt;text-align:right' style="margin-top:0;margin-bottom:0">103</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.7pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#D9D9D9;
 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=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,007</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,984</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.4pt;text-align:right' style="margin-top:0;margin-bottom:0">23</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.7pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">273</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">193</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:5.4pt;text-align:right' style="margin-top:0;margin-bottom:0">80</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.7pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">41</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#D9D9D9;
 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=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">7.4:1</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">10.3:1</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.4pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 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=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.7pt;text-align:
 right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our total international long distance service revenues
decreased by Php1,259 million, or 13%, to Php8,674 million in 2007 from
Php9,933 million in 2006 primarily due to the appreciation of the Philippine
peso and a decrease in average termination rates for inbound calls partially
mitigated by an increase in inbound and outbound call volumes.  The percentage
contribution of international long distance service revenues to our total fixed
line service revenues decreased to 18% in 2007 from 20% in 2006.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
revenues from inbound international long distance service decreased by Php1,251
million, or 15%, to Php7,127 million primarily due to the appreciation of the
Philippine peso to the U.S. dollar and a decrease in the average termination rate
per minute due to the change in call mix with more traffic terminating to
cellular operators where the net revenue retained by us is lower.  These
decreasing effects were partially offset by a slight increase in inbound
traffic volume by 23 million minutes to 2,007 million minutes in 2007.  The
appreciation of the Philippine peso to the U.S. dollar with average exchange
rates of Php45.900 in 2007 and Php51.165 in 2006 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 pesos at the time of billing. </p>

<p style='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 outbound international long distance service decreased by Php8
million, or 1%, to Php1,547 million in 2007 primarily due to a decline in
average revenue per minute as a result of a lower average collection rate with
the introduction of low-rate services such as <i>PLDT ID-DSL</i> and <i>Budget
Card</i>, and the higher level of the appreciation of the Philippine peso in
2007, which more than offset the increase in outbound international call
volumes in 2007.</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>National
Long Distance Service</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
national long distance service revenues consist of: (i) 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; (ii) access charges received from other
telecommunications carriers for calls carried through our backbone network
and/or terminating to our customers; and (iii) 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="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows our national
long distance service revenues and call volumes for the years ended December
31, 2007 and 2006, respectively:</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:98.08%;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>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' 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"><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   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=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Decrease</b></p>
 </td>
 </tr>
 <tr style='height:9.6pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.6pt'>
 <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:9.6pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.6pt'>
 <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;height:9.6pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.6pt'>
 <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 0in 0in 0in;height:9.6pt'>
 <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;
 height:9.6pt'>
 <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 0in 0in 0in;height:9.6pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:4.5pt;margin-bottom:.0001pt;line-height:normal;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">Php6,338</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">Php6,921</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(Php583)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.05pt;text-align:right' style="margin-top:0;margin-bottom:0">(8)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#D9D9D9;
 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=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">2,183</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;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=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.55pt;text-align:right' style="margin-top:0;margin-bottom:0">2,251</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;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=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">(68)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;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=' background:#D9D9D9;
 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='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our national long distance service revenues decreased
by Php583 million, or 8%, to Php6,338 million in 2007 from Php6,921 million in
2006 primarily due to a decrease in call volumes coupled with lower average
revenue per minute in 2007 as a result of our various bundled promotions.  The
percentage contribution of national long distance revenues to our fixed line
service revenues accounted for 13% in 2007 and 14% in 2006.</p>

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

<p style='text-indent:.25in' style="margin-top:0;margin-bottom:0"><i>Data
and Other Network Services</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
data and other network service revenues include charges for leased lines,
IP-based, packet-based and switched-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;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
following table shows information about our data and other network service
revenues for the years ended December 31, 2007 and 2006:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='margin-left:9.9pt;border-collapse:collapse'>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><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  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' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p 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>
 <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' 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' 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' 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' 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 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;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>2007</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>2006</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>Amount</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>%</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=7 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>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Data and other network
 service revenues (in millions)</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php15,921</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding: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=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php13,725</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding: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=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php2,196</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding: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=' background:#D9D9D9;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=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Number of DSL broadband
 subscribers</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">264,291</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">133,159</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">131,132</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">98</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Number of PLDT Vibe
 narrowband subscribers</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">230,995</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding: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=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">297,250</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding: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=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(66,255)</p>
 </td>
 <td  valign=top style=' background:#D9D9D9;padding: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=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(22)</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">In
2007, our data and other network services recognized revenues of Php15,921
million, an increase of Php2,196 million, or 16%, from Php13,725 million in
2006.  This increase was primarily due to increases in leased lines, IP-based
and packet-based data services, particularly Diginet and DFON rental, a
significant increase in the number of DSL broadband subscribers, which was
partially offset by a decrease in the number of PLDT Vibe narrowband
subscribers.  IP-based products include <i>PLDT</i> <i>DSL</i> (<i>myDSL </i>and<i> BizDSL</i>),
<i>PLDT Vibe</i> and I-Gate.  The percentage contribution of this
service segment to our fixed line service revenues increased to 33% in 2007
from 28% in 2006.</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>DSL</i> contributed revenues of Php3,880 million in 2007, an
increase of Php748 million, or 24%, from Php3,132 million in 2006 primarily due
to a significant increase in the number of subscribers, which was partially
offset by lower average revenue per user as a result of launching lower plans
as part of promotions.  <i>DSL</i> reached 264,291 subscribers in 2007 compared
with 133,159 subscribers in 2006.  </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>PLDT
Vibe</i> revenues decreased by Php128
million, or 33%, to Php259 million in 2007 from Php387 million in 2006
primarily due to lower number of plan subscribers as well as the declining
usage of our Vibe prepaid service.  <i>PLDT Vibe</i> subscribers decreased to
230,995 in 2007 from 297,250 in 2006.  The declining number of Vibe plans and
regular monthly users for our Vibe prepaid service may be partially attributable
to the migration from Vibe dial-up to <i>DSL</i> which is now priced more
competitively.  </p>

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
continued growth in data services revenues steady demand for dedicated
connectivity or private networking from the corporate market using PLDT&#146;s
traditional international and domestic data services offerings.</p>

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

<p style='margin-left:0in;text-indent:.5in;line-height:
93%' style="margin-top:0;margin-bottom:0">Diginet, our domestic
private leased line service, has been providing Smart&#146;s increasing fiber optic
and leased line data requirements.  Diginet revenues increased by Php478
million, or 7%, to Php7,291 million in 2007 as compared to Php6,813 million in
2006 mainly due to an increase in Smart&#146;s DFON rental to Php5,565 million in
2007 from Php4,940 million in 2006.</p>

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

<p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Miscellaneous</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='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Miscellaneous service revenues are
derived mostly from directory advertising and facilities management and rental
fees.  In 2007, these revenues decreased by Php219 million, or 13%, to Php1,413
million from Php1,632 million in 2006 mainly due to a decline in facilities
management fees and rental income owing to lower co-location charges.  The
percentage contribution of miscellaneous service revenues to our total fixed
line service revenues was 3% in 2007 and 2006.</p>

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

<p style="margin-top:0;margin-bottom:0"><i>Non-service Revenues</i></p>

<p style='text-indent:.5in;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">Non-service
revenues increased by Php202 million, or 256%, to Php281 million in 2007 from
Php79 million in 2006 primarily due to an increase in subscriptions for DSL
service that is bundled with computers and thus resulted in higher computer
sales.</p>

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

<p style="margin-top:0;margin-bottom:0"><i>Foreign Exchange Gains &#150;
Net</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our net
fixed line foreign exchange gains increased by Php2,269 million, or 71%, to Php5,479
million in 2007 from Php3,210 million in 2006 primarily due to higher level of
the appreciation of the Philippine peso to the U.S. dollar in 2007 as compared
to 2006.</p>

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Interest
income of our fixed line business segment decreased by Php145 million, or 33%,
to Php296 million in 2007 from Php441 million in 2006 primarily due to lower interest
rates.</p>

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

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">All other income/gains such as rental income and gain on disposal of
property, which do not fall under service and non-service revenues, are included
under this classification.  In 2007, our fixed line business segment registered
a decrease in other income of Php2,816 million, or 56%, to Php2,190 million
from Php5,006 million in 2006 largely due to the recognition in 2006 of the net
reversal of a provision for onerous contract amounting to Php3,529 million
related to the change in the Air Time Purchase Agreement with AIL (please see <i>Note
2 &#150; Summary of Significant Accounting Policies and Practices </i>and <i>Note 22
&#150; Related Party Transactions </i>to the accompanying audited consolidated
financial statements in Item 18 for further discussion).</p>

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Expenses
related to our fixed line business totaled Php45,920 million in 2007, a
decrease of Php9,863 million, or 18%, as compared to Php55,783 million in 2006.
This decrease was primarily due to lower loss on derivative transactions, depreciation
and amortization, and financing costs, partially offset by higher professional
and other contracted services, provisions, rent, repairs and maintenance and
taxes and licenses.</p>

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table sets forth the breakdown of our
total fixed line-related expenses for the years ended December 31, 2007 and 2006,
respectively, 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:95.38%;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>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   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">&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   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=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 (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>2007</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   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">&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>2006</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   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>%</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=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-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;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   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   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">&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   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   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   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;height:.1in'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:.1in'>
 <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=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:.1in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:.1in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:.1in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:.1in'>
 <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=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:.1in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:.1in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:.1in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:.1in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 0in 0in 0in;height:.1in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in;height:.1in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 0in 0in 0in;
 height:.1in'>
 <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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php15,477</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">34</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php20,406</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">37</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php4,929)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 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=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Compensation and employee benefits(1)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,411</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">23</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;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   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,298</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 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">19</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">113</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,657</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,173</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,516)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 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=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Repairs and maintenance</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,772</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;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   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 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</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;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=' background:#D9D9D9;
 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   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">219</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 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</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Loss on derivative transactions</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,335</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,346</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">15</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(5,011)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,799</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,579</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">220</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#D9D9D9;
 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 contracted services</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,727</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;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   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,082</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 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   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">645</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,707</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,736</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(29)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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=' background:#D9D9D9;
 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=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">877</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;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   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">659</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 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</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">218</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">33</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">666</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">628</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,653</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Communication, training and travel</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">466</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;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   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">507</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 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</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 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   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">439</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">498</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(59)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(12)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#D9D9D9;
 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=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">145</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 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=' background:#D9D9D9;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   colspan=2 valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">159</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 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   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(14)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:13.5pt;margin-bottom:.0001pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asset impairment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">43</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(11)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(20)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:13.5pt;margin-bottom:.0001pt;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;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">399</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-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;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;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   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">695</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-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;background:#D9D9D9;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</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-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;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(296)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#D9D9D9;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-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;background:#D9D9D9;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(43)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0">Total
 </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;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">Php45,920</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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;background:#F3F3F3;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=' background:#F3F3F3;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;background:#F3F3F3;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">Php55,783</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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;background:#F3F3F3;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=' background:#F3F3F3;
 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;background:#F3F3F3;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">(Php9,863)</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 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;background:#F3F3F3;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">(18)</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='line-height:150%;punctuation-wrap:hanging;
text-autospace:ideograph-numeric ideograph-other;border:none' style="margin-top:0;margin-bottom:0">____________</p>

<p style="margin-top:0;margin-bottom:0"><i>(1)  Includes salaries and employee
benefits, incentive plan, pension and MRP costs.</i></p>

<p 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 Php4,929 million, or 24%, to Php15,477
million due to the recognition in 2006 of additional depreciation charges on
certain properties and equipment resulting from the accelerated pace of our NGN
roll-out in 2006.  In contrast, our NGN roll-out progressed at a significantly slower
pace in 2007 and thereby resulted in a lower level of our depreciation and
amortization charges in 2007.  In 2007, as a result of such continued NGN
roll-out, we recognized additional depreciation charges of Php734 million
relating to Piltel&#146;s fixed line equipment that were also affected by our
continuing network upgrade and expansion. <b> </b>We currently expect that the
level of our amortization and depreciation charges in 2008 will continue to be
impacted by, among other things, the pace of our NGN roll-out, which pace is
influenced by, among other things, the condition of our property and equipment
and general economic conditions.  </p>

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Compensation and employee benefits
expenses increased by Php113 million, or 1%, to Php10,411 million primarily due
to an increase in pension benefits and costs associated with our MRP, and the
effect of collective bargaining agreement-related increases in salaries and
employee benefits, partially offset by lower LTIP costs.  In 2006, we accrued
higher LTIP costs as a result of the early vesting of the LTIP in 2006.  Over
the past years, PLDT has been implementing its MRP in line with the challenges
being faced by the fixed line business as significant changes in technology,
increasing competition and shifting market preferences to cellular use have
reshaped the future of our fixed line business.  Total MRP costs in 2007 and
2006 amounted to Php564 million and Php414 million, respectively.  For further
discussion on our LTIP, please see Item 6. &#147;Directors, Senior Management and Employees
&#150; Long-Term Incentive Plan&#148; and <i>Note 23 &#150; Share-based Payments and Employee
Benefits</i> to the accompanying audited consolidated financial statements in
Item 18.</p>

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Financing costs decreased by Php1,516
million, or 25%, to Php4,657 million largely due to lower interest on loans and
related items and accretion of financial liabilities.  This was partially
offset by higher financing charges in relation to costs incurred in the consent
solicitation of holders of our 11.375% Notes due 2012, 10.5% Notes due 2009 and
8.35% Notes due 2017, or the Notes, and the amendments of the covenants of our Notes,
as discussed in <i>Note 18 &#150; Interest-bearing Financial Liabilities </i>to the
accompanying audited consolidated financial statements in Item 18.  The breakdown of financing costs for our fixed line
business for the years ended December 31, 2007 and 2006 is as follows: </p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:6.25in;margin-left:5.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  colspan=7 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  colspan=3 valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Change</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2007</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>2006</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>
 <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=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><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;
 page-break-after:avoid' style="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=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php4,642</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php6,254</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Php1,612)</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(26)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accretion on financial liabilities &#150; net</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">185</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">206</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(21)</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(10)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Financing charges</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">184</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='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=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">170</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,214</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Capitalized interest</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(354)</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(301)</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.7pt;text-align:right' style="margin-top:0;margin-bottom:0">(53)</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:.7pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&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;
 background:#F3F3F3;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">Php4,657</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&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;
 background:#F3F3F3;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">Php6,173</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&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;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(Php1,516)</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&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;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(25)</p>
 </td>
 </tr>
</table></center></div>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Repairs and maintenance expenses increased by Php219
million, or 6%, to Php3,772 million primarily due to higher maintenance costs
of central office and telecoms equipment and domestic cable and wire facilities
as more operating and maintenance-related restorations were incurred in 2007 as
compared to 2006.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Loss
on derivative transactions decreased by Php5,011 million, or 60%, to Php3,335
million primarily due to lower hedging costs and the effect of the appreciation
of the peso against the U.S. dollar.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Rent
expenses increased by Php220 million, or 14%, to Php1,799 million due to the
settlement of pole rental charges and an increase in international leased
circuit charges, partially offset by a decrease in transponder leases.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Professional and other contracted services increased
by Php645 million, or 60%, to Php1,727 million primarily due to an increase in
consultancy services coupled with higher contracted fees for technical and
advisory services.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Selling and promotion expenses decreased by Php29
million, or 2%, to Php1,707 million primarily as a result of a collective
effort in efficient media spending in relation to various products and
services, partially offset by higher public relations expenses.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Taxes
and licenses increased by Php218 million, or 33%, to Php877 million mainly on
account of higher business-related taxes.  Please see <i>Note 25 &#151; Provisions
and Contingencies</i> to the accompanying audited consolidated financial
statements in Item 18 for a further discussion.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Provisions
increased by Php628 million to Php666 million primarily due to higher provision
for assessments in 2007.  Please see <i>Note 25 &#150; Provisions and Contingencies</i>
to the accompanying audited consolidated financial statements in Item 18 for
further details. </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Communication,
training and travel expenses decreased by Php41 million, or 8%, to Php466
million due to the decrease in mailing, courier and delivery charges, and a net
decrease in foreign and local travel, and training expenses.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Insurance
and security services decreased by Php59 million, or 12%, to Php439 million
primarily due to lower premiums on property all-risk, industrial all-risk and
industrial fire insurance. </p>

<p style='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 Php14 million, or 9%, to Php145 million due to lower
computer-bundled sales in relation to our DSL promotions and <i>WeRoam</i>
subscriptions.</p>

<p style='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 Php11 million, or 20%, to Php43 million mainly due to
lower uncollectible receivables.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Other
expenses decreased by Php296 million, or 43%, to Php399 million due to lower
various business and operational-related expenses.</p>

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

<p style="margin-top:0;margin-bottom:0"><b><i>Provision for (Benefit
from) Income Tax</i></b></p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Provision for income tax amounted to Php3,358 million
in 2007 as compared to a benefit from income tax of Php639 million in 2006
primarily due to higher taxable income as a result of lower expenses primarily
due to lower loss on derivative transactions, depreciation and amortization and
financing costs recognized in 2007.</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"><b><i>Net Income </i></b></p>

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

<p style="margin-top:0;margin-bottom:0">In 2007, our fixed line business
segment contributed a net income of Php7,519 million, an increase of Php4,753
million, or 172%, as compared to Php2,766 million in 2006 mainly as a result of
an 18% decline in fixed line-related expenses, particularly lower loss on
derivative transactions, depreciation and amortization and financing costs,
partially offset by a 2% decrease in the revenues from our fixed line service and
a higher provision for income tax. </p>

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

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

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

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><b>Total Revenues </b></h5>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our ICT business provides knowledge processing
solutions, customer interaction services, internet and online gaming and data
center 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">In
2007, our ICT business generated revenues of Php10,799 million, an increase of
Php3,874 million, or 56%, from Php6,925 million in 2006.  This increase was
largely due to the effects of the full-year consolidation of the financial
results of the SPi Group in 2007 and the continued increase of our customer
interaction service revenues.</p>

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table summarizes our total revenues from
our information and communications technology business for the years ended
December 31, 2007 and 2006 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:477.05pt;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=13 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=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  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  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">&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>2007</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  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=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>2006</b></p>
 </td>
 <td  valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border: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"><b>&nbsp;</b></p>
 </td>
 <td  colspan=13 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>
 <tr 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=13 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 style='height:10.35pt'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:10.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Service Revenues</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:10.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:10.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Knowledge processing solutions</p>
 </td>
 <td  colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php5,261</p>
 </td>
 <td  colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php2,374</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:
 0in 5.4pt 0in 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>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 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=' background:#E0E0E0;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">Php2,887</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 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>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Customer interaction services</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,262</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,624</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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">638</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;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 online gaming </p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">937</p>
 </td>
 <td  colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">796</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 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=' background:#E0E0E0;
 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">141</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 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>
 </tr>
 <tr style='height:.15in'>
 <td  valign=top style=' background:#F3F3F3;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</i>&#228; data center</p>
 </td>
 <td  colspan=2 valign=bottom style=' background:#F3F3F3;
 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">595</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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">5</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">543</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;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">8</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:.15in'>
 <p align=right style='margin-right:2.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;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=2 valign=top style=' border:none;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,055</p>
 </td>
 <td  colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 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-top:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <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=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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-top:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,337</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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-top:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">92</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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-top:solid windowtext 1.0pt;
 background:#E0E0E0;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">3,718</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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-top:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">59</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Non-service Revenues</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;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 product sales</p>
 </td>
 <td  colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">267</p>
 </td>
 <td  colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">553</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(286)</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(52)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign exchange loss &#150; net</p>
 </td>
 <td  colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(138)</p>
 </td>
 <td  colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(109)</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(29)</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 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>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest income</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">21</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;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  colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">594</p>
 </td>
 <td  colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 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=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 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=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;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">466</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">364</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=top style=' border:none;border-top:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total ICT Revenues </p>
 </td>
 <td  colspan=2 valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php10,799</p>
 </td>
 <td  colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 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;
 background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 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;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php6,925</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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;
 background:#E0E0E0;padding:0in 5.4pt 0in 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=' background:#E0E0E0;padding:0in 5.4pt 0in 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;
 background:#E0E0E0;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">Php3,874</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 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;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style='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>Service Revenues</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Service
revenues generated by our ICT business segment amounted to Php10,055 million in
2007, an increase of Php3,718 million, or 59%, as compared to Php6,337 million
in 2006 primarily as a result of the consolidation of the SPi Group and Level
Up! and the continued growth of our customer interaction services business.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Knowledge
Processing Solutions (formerly referred to as Business Process Outsourcing)</i></p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Knowledge
processing solution revenues consist of: (i) editorial and content production
services to the scholarly scientific, technical and medical (SSTM) journal
publishing industry; (ii) digital content conversion services to information
organizations; (iii) pre-press project management services to book publishers; (iv)
litigation support services which involve conventional coding and electronic
discovery support services for corporations, international law firms, corporate
counsels and government agencies; (v) conversion services of medical
record/data from handwritten or speech format to electronic format and patient
scheduling, coding and compliance assistance, consulting and specialized
reporting services; and (vi) revenue cycle management services for U.S. medical
facilities.</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">We
provide our knowledge processing solutions primarily through the SPi Group,
which ePLDT acquired on July 11, 2006.  Knowledge processing solutions
contributed revenues of Php5,261 million in 2007, an increase of Php2,887 million,
or 122%, from Php2,374 million in 2006 primarily as a result of the effects of
the full-year consolidation of the financial results of the SPi Group, and
accounted for 52% and 37% of total service revenues of our ICT business in 2007
and 2006, respectively.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Customer
Interaction Services (formerly described as Call Center business)</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">Customer
interaction service revenues consist of: (i) inbound calls for customer care,
product inquiries, sales and technical support based on active minutes,
billable hours and full-time equivalents; (ii) outbound calls for sales and
collections based on active minutes, billable hours and full-time equivalents;
and (iii) service income for e-mail handling, web chat, web co-browsing, data
entry and knowledge processing solutions based on transaction volume.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">We provide our customer interaction services primarily
through <i>ePLDT Ventus</i>.  Revenues relating to our customer interaction
services business increased by Php638 million, or 24%, to Php3,262 million in
2007 from Php2,624 million in 2006 primarily due to the expansion of our
facilities.  In total, we own and operate approximately 6,400 seats with 5,930
customer service representatives, or CSRs, in 2007 compared to approximately
5,600 seats with 5,130 CSRs in 2006.  In 2006, <i>ePLDT Ventus</i> launched two
new sites bringing our total customer interaction services site count to nine
in 2007.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Customer interaction service revenues accounted for 33%
and 41% of total service revenues of our ICT business in 2007 and 2006,
respectively.</p>

<p style='line-height:9.0pt' 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 Online Gaming </i></p>

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Internet and online gaming service
revenues consist of: (i) revenues derived from actual usage of the internet
access network by prepaid subscribers; (ii) monthly service fees from postpaid
corporate and consumer subscribers; (iii) one-time fees generated from the
reselling of internet-related solutions such as security solutions and domain
registration; (iv) franchise and royalty fees for <i>Netopia</i> internet
caf&#233;s; and (v) online gaming revenues from subscribers, including one-time sale
of gaming cards and electronic pins, and top-up fees upon actual consumption of
gaming credits or after expiration of any unused peso value thereof. </p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Revenues from our internet and online gaming
businesses increased by Php141 million, or 18%, to Php937 million in 2007 from
Php796 million in 2006 primarily due to the effects of the full-year consolidation
of the financial results of Level Up! which resulted in an increase in revenues
by Php49 million, and an increase in Infocom&#146;s revenues by Php63 million due to
additional revenues from our customer service outsourcing.  Our internet and
online gaming business revenues accounted for 9% and 13% of total service
revenues of our ICT business in 2007 and 2006, respectively.</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"><i>Vitro</i>&#228; <i>Data</i><i> Center</i></p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">ePLDT operates an internet data center under the brand
name <i>Vitro</i>&#228; which 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 firewalls and managed firewalls.  </p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Vitro</i>&#228; revenues consist of:
(i) 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; (ii)installation charges or one-time fees associated with the set-up
of services and professional services of Vitro&#146;s certified professionals; and (iii)
fees generated from the issuance of digital certificates and revenues derived
from IT helpdesk/contact center solutions and terminals for credit, debit and
credit card transactions.</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
2007, <i>Vitro</i>&#228; contributed revenues of Php595 million, an increase
of Php52 million, or 10%, from Php543 million in 2006.  This increase was
primarily due to an increase in co-location revenues and server hosting.  <i>Vitro</i>&#228; revenues accounted for 6% and 9% of service revenues of our ICT
business in 2007 and 2006, respectively.</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">Please
refer to <i>Note 9 &#150; Investments</i> <i>in Associates</i> <i>and Joint Ventures</i>
to the accompanying audited consolidated financial statements in Item 18 for
further discussion on ePLDT&#146;s investments.</p>

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

<p style="margin-top:0;margin-bottom:0"><i>Non-service Revenues</i></p>

<p style='text-indent:.5in;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">Non-service
revenues consist of sales generated from reselling certain software licenses,
server solutions, networking products, storage products and data security
products.  In 2007, non-service revenues generated by our ICT business
decreased by Php286 million, or 52%, to Php267 million as compared to Php553
million in 2006 primarily due to lower revenues from sales of software and
hardware licenses.</p>

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

<p style="margin-top:0;margin-bottom:0"><i>Foreign Exchange Loss &#150;
Net</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our net
ICT foreign exchange loss increased by Php29 million, or 27%, to Php138 million
in 2007 from Php109 million in 2006 primarily due to the loss on revaluation of
our net foreign currency-denominated assets.</p>

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Interest
income for our ICT business segment increased by Php5 million, or 31%, to Php21
million in 2007 from Php16 million in 2006 primarily due to a higher level of
cash balances in 2007.</p>

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">All
other income/gains which do not fall under service and non-service revenues are
included under this classification.  Other income generated from our ICT
business increased by Php466 million, or 364%, to Php594 million in 2007 as
compared to Php128 million in 2006 primarily due to the recognition of
cumulative dividends and interest on ePLDT&#146;s investment in convertible
securities of Stradcom International Holdings, Inc., or SIHI.  On February 28,
2008, SIHI redeemed all of the convertible securities of SIHI held by ePLDT.
Please see <i>Note 13 &#150; Investment in Debt Securities</i> to the accompanying
audited consolidated financial statements in Item 18 for further discussion of
our investment in Stradcom.  </p>

<p style='text-indent:31.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Expenses</i></b></p>

<p style='text-indent:31.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Expenses associated with our ICT business totaled
Php11,010 million in 2007, an increase of Php3,736 million, or 51%, from
Php7,274 million in 2006 primarily due to the effects of the full-year consolidation
of the financial results of the SPi Group and Level Up! in 2007 resulting in an
increase in compensation and employee benefits, professional and other
contracted services, communication, training and travel, depreciation and
amortization and asset impairment, partially offset by lower cost of sales and
higher gain on derivative transactions.  As a percentage of our total ICT
revenues, expenses related to our ICT business were 102% and 105% for 2007 and
2006, respectively.   </p>

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows the breakdown of our total
information and communications technology-related expenses for the years ended
December 31, 2007 and 2006, respectively, 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>

<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>

<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>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   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=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Increase (Decrease)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2007</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   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>%</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">&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>2006</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>%</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border: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;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;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.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">&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   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' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">ICT services:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=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=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:6.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Compensation and employee benefits(1)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php5,455</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php3,021</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">41</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php2,434</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">81</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt' style='page-break-inside:
 avoid !msorm;height:9.45pt !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Professional and other contracted services</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">1,129</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;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   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">739</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">390</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:9.45pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">53</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Depreciation and amortization</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">934</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">711</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">223</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">31</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asset impairment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">711</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">492</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">219</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Rent</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">620</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">444</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">176</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">40</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Communication, training and travel</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">523</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">276</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">247</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">89</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.15in' style='page-break-inside:
 avoid !msorm;height:.15in !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:.15in'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Repairs and maintenance</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:.15in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">504</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:.15in'>
 <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=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:.15in'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:.15in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">368</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:.15in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:.15in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:.15in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">136</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:.15in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:.15in'>
 <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' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Selling and promotions</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">321</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">293</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">28</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost of sales</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">254</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">476</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(222)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">(47)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Amortization of intangible assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">232</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=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=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">138</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">94</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">68</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Financing costs </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">132</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">23</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">109</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">474</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Taxes and licenses</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">94</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">70</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">24</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">34</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Insurance and security services</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=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=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">40</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Equity share in net losses of associates</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">11</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=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=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(41)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(79)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Gain on derivative transactions</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:1.45pt;text-align:right' style="margin-top:0;margin-bottom:0">(138)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(3)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">(135)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">4,500</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-left: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;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">179</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=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;background:#F3F3F3;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">139</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">40</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;border:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">29</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt' style='page-break-inside:
 avoid !msorm;height:3.5pt !msorm'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:3.5pt'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php11,010</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:3.5pt'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php7,274</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm;height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php3,736</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 border:none !msorm;border-bottom:double windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.5pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">51</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

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

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

<p style="margin-top:0;margin-bottom:0"><i>(1)   Includes salaries and
employee 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 employee benefits increased by Php2,434 million, or 81%, to Php5,455
million largely due to the full-year consolidation of the SPi Group in 2007 and
the expansion of our customer interaction services business.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Professional
and other contracted services increased by Php390 million, or 53%, to Php1,129
million primarily due to the full-year consolidation of the SPi Group and higher
consultancy fees and subcontracted services incurred by the SPi Group related
to its knowledge processing solutions.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Depreciation and amortization charges increased by
Php223 million, or 31%, to Php934 million primarily due to an increase in the
depreciable asset base in relation to the expansion of our customer interaction
services business and the full-year consolidation of the SPi Group in 2007.  </p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Asset impairment increased by Php219 million, or 45%,
to Php711 million mainly due to ePLDT&#146;s provision for impairment of goodwill
mainly from an investment by SPi and Level Up! amounting to Php1,162 million,
partially offset by a provision for impairment on notes receivable amounting to
Php346 million in 2006 and the reversal in 2007 of an impairment loss of Php616
million related to our investment in SIHI.  Please see <i>Note 13 &#150; Investment
in Debt Securities</i> to the accompanying audited consolidated financial
statements in Item 18 for further discussion of our investment in SIHI.</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">Rent
expenses increased by Php176 million, or 40%, to Php620 million primarily due
to higher office space rentals and leased circuits from other carriers incurred
by our customer interaction services business, the SPi Group and Level Up!.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Communication,
training and travel expenses increased by Php247 million, or 89%, to Php523
million primarily due to the increased cost of phone lines, bandwidth and
information system charges, coupled with the increase in local and foreign
travel costs, mailing and courier charges, and freight and hauling charges
incurred by our customer interaction service and knowledge processing solution
businesses due to the full-year consolidation of the SPi Group in 2007.  </p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Repairs and maintenance expenses increased by Php136
million, or 37%, to Php504 million primarily due to higher maintenance costs
for new customer interaction service facilities plus higher electricity charges
for <i>Vitro</i>TM and the full-year consolidation of the SPi Group
and Level Up!.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Selling and promotion expenses increased by Php28
million, or 10%, to Php321 million mainly due to the SPi Group&#146;s higher
advertising and marketing spending.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Cost
of sales decreased by Php222 million, or 47%, to Php254 million primarily due
to lower sales of software licenses and hardware products.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Amortization
of intangible assets increased by Php94 million, or 68%, to Php232 million in
relation to the acquisition of the SPi Group and Level Up!, as well as the
acquisition of Springfield Service Corporation, or Springfield, by SPi in April
2007.  Please see <i>Note 11 &#150; Goodwill and Intangible Assets</i> to the
accompanying audited consolidated financial statements in Item 18 for a further
discussion.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Financing
costs increased by Php109 million, or 474%, to Php132 million in 2007 primarily
due to a higher accretion on financial liabilities particularly in relation to the
contingent consideration for the Springfield acquisition in 2007.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Taxes
and licenses increased by Php24 million, or 34%, to Php94 million primarily due
to the full-year consolidation of the SPi Group in 2007 and the payment of previously
disputed business-related taxes.  Please see <i>Note 25 &#151; Provisions and
Contingencies</i> to the accompanying audited consolidated financial statements
in Item 18 for a further discussion.</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Insurance and security services increased by Php14
million, or 40%, to Php49 million primarily due to higher premium costs and an
increase in the value of assets insured.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Equity
share in net losses of associates amounted to Php11 million in 2007 compared to
Php52 million in 2006 primarily due to a decrease in ePLDT&#146;s share in net
losses of unconsolidated investee companies.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Gain
on derivative transactions increased by Php135 million to Php138 million in
2007 primarily due to higher derivative gains recognized by our customer
interaction service and knowledge processing solutions businesses as a result
of the peso appreciation.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Other expenses increased by Php40 million, or 29%, to
Php179 million mainly due to higher business-related costs, such as office
supplies.</p>

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

<p style='text-indent:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Benefit from Income Tax </i></b></p>

<p style='text-indent:13.5pt;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">Benefit from income tax increased by Php80 million, or
216%, to Php117 million in 2007 primarily due to the corresponding deferred tax
effect of the amortization of intangible assets in relation to the acquisition
of the SPi Group and Level Up!.  </p>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left;
text-indent:13.5pt' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></h6>

<p align=left style='margin-bottom:0in;margin-bottom:.0001pt;text-align:left;
text-indent:13.5pt' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><i>Net Loss</i></h6>

<p style='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
2007, our ICT business segment registered a net loss of Php94 million, an
improvement of 70% from a net loss of Php312 million in 2006.  This decrease in
net loss was mainly a result of the 56% increase in ICT-related revenues mainly
from the full-year consolidation of the SPi Group and Level Up! and higher
benefit from income tax in 2007, partially offset by the 51% increase in
ICT-related expenses mainly from the full-year consolidation of the SPi Group.</p>

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

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0"><b>Plans and Prospects</b></p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">We are the largest and most diversified telecommunications
company in the Philippines.  We offer the broadest range of telecommunications
services among all operators in the Philippines.  We plan to capitalize on this
position to further expand our subscriber base and fortify our industry
position.  We also plan to maximize revenue opportunities by offering more
value-driven products and services, while bundling and cross-selling voice and
data offerings across our various platforms of our wireless, fixed line and ICT
business segments.  We intend to align as well the deployment of our fixed line
and wireless platforms and technologies such that these initiatives dovetail
with our delivery of services.  We will continue to consider value-accretive
investments in related businesses such as those in the global outsourcing and
off-shoring industry.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">For
2008, cash from operations will allow us to increase the level of our capital
expenditures for the expansion and upgrading of our network infrastructure.  We
expect to make additional investments in our core facilities to maximize
existing technologies and increase capacity.  Our 2008 budget for consolidated
capital expenditures is approximately Php25,000 million, of which approximately
Php15,000 million is budgeted to be spent by Smart, approximately Php9,000 million
is budgeted to be spent by PLDT and the balance represents the budgeted capital
spending of our other subsidiaries.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286161"></a><a
name="_Toc75779217"></a><a name="_Toc46082276"><b>Liquidity
and Capital Resources</b></a></p>

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows our consolidated cash flows,
capitalization and other selected financial data as at and for the years ended
December 31, 2007 and 2006:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:96.2%;;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"><b>Years Ended December 31,</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   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>2007</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>2006</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"><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"><b>(in millions)</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=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>
 <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>
 </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   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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php77,418</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php69,211</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31,319</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">35,790</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><i>Capital expenditures</i></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>24,824</i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>20,674</i></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">44,819</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">45,900</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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 (decrease) in cash and cash
 equivalents</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">577</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:5.75pt;
 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   colspan=2 valign=bottom style=' background:#E0E0E0;
 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">(13,189)</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   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   colspan=2 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   colspan=5 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   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>2007</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='margin-left:.85pt;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 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 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>2006</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=5 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>(in millions)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Long-term portion of interest-bearing
 financial liabilities &#150; <br>
 net of current portion:</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p 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=' background:#E0E0E0;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php53,372</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php63,769</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;
 padding:0in 0in 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=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=top style=' background:#F3F3F3;
 padding:0in 0in 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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;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;background:#E0E0E0;padding:0in 0in 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=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=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,369</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">53,387</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">65,244</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   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left: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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p 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=' background:#F3F3F3;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=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">493</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=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=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">201</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,775</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=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=top style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,184</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;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 finance lease maturing
 within one year</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">481</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=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=top style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">924</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,015</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=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=top style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,764</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,309</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">62,151</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">82,553</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">112,345</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">102,853</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">Php174,496</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">Php185,406</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   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Total
 assets</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php240,158</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">Php241,904</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Property,
 plant and equipment - net</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">159,414</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">164,190</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Cash
 and cash equivalents</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">17,447</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">16,870</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Short-term
 investments</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">13,415</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0">8,327</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='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">As at December 31, 2007, our consolidated cash and
cash equivalents and short-term investments totaled Php30,862 million.  Our principal
sources of consolidated cash and cash equivalents in 2007 were cash flows from
operating activities amounting to Php77,418 million, drawings from Smart&#146;s,
PLDT&#146;s and ePLDT&#146;s debt facilities aggregating Php7,647 million and short-term
credit facilities totaling Php502 million.  These funds were used principally
for dividend payments of Php28,470 million, capital outlays of Php24,824
million, total debt principal payments of Php18,258 million and interest
payments of Php5,891 million.  </p>

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

<p style="margin-top:0;margin-bottom:0">Principal sources of consolidated
cash and cash equivalents in 2006 were cash flows from operations amounting to
Php69,211 million, drawings from long-term and short-term credit facilities
totaling Php9,724 million and Php211 million, respectively, and equity funds
raised through the issuance of capital stock amounting to Php66 million in
2006.  These funds were used principally for capital outlays of Php20,674
million (including capitalized interest of Php549 million), payments of
long-term and short-term debt totaling Php29,366 million and interest payments
of Php7,528 million. </p>

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

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

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Our consolidated net cash flows from
operating activities in 2007 increased by Php8,207 million, or 12%, to Php77,418
million from Php69,211 million in 2006.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">A growing portion of our consolidated cash flow continues
to be generated by our wireless business, which accounted for 58% and 56% of
our total revenues in 2007 and 2006, respectively.  Revenues from our fixed
line and information and communications technology services accounted for 35%
and 7%, respectively, of our total revenues in 2007 and 39% and 5% in 2006,
respectively.   </p>

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

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Cash flows from operating activities of
our wireless business amounted to Php49,616 million in 2007, an increase of
Php12,331 million, or 33%, compared to Php37,285 million in 2006.  The increase
in our wireless business segment&#146;s cash flows from operating activities was
primarily due to the decrease in our working capital requirements in 2007 owing
to the higher level of settlement of various payables in 2006.  However, cash
flows from operating activities of our fixed line business decreased by Php5,151
million, or 17%, to Php25,274 million in 2007 compared to Php30,425 million in
2006.  This decrease was primarily due to higher working capital requirements
in our fixed line business in 2007 due to PLDT&#146;s contribution to its pension
plan and the settlement of our LTIP in 2006 and lower collection of receivables.
 The overall increase in our cash flows from
operating activities was primarily due to a decrease in working capital
requirements with lower level of settlements of various current liabilities,
partially offset by higher billings of accounts receivable.  We believe that
our continuing strong cash flows from operating activities on a consolidated
basis will allow us to satisfy our current liabilities as our current ratio is
more than 1:1 as at December 31, 2007.</p>

<p style='margin-left:0in;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">Prior
to April 2006, under restrictive covenants in certain of its loan facilities,
Smart was required to obtain, and since 2002 had obtained, waivers from
Finnvera and certain of its lenders for all dividend payments made by Smart to
PLDT.  Due to the repayment of all loan facilities by April 2006 that contained
covenants restricting Smart&#146;s 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 is no longer subject to
such restrictions.  Cash dividends paid by Smart to PLDT for the years ended
December 31, 2007 and 2006 amounted to Php26,927 million and Php20,600 million,
respectively.</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">In 2007, Piltel paid cash dividends to
various preferred shareholders in the aggregate amount of Php2,943 million, of
which Php2,930 million was paid to PLDT.</p>

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

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

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

<p style='margin-left:0in;text-indent:.5in;line-height:
94%' style="margin-top:0;margin-bottom:0">Net cash used in investing
activities amounted to Php31,319 million in 2007, a decrease of Php4,471
million, or 12%, from Php35,790 million in 2006.  This decrease was primarily a
net result of a decrease in investments by Php8,602 million in 2007 due to the
acquisitions of 100% equity interests in SPi and CyMed in 2006, partially
offset by an increase in capital expenditures of Php4,150 million in 2007.
Payments for purchase of investments in 2007 amounted to Php2,288 million, of
which Php1,687 million and Php601 million were paid for the acquisitions of a
100% equity interest in Springfield and a 30% equity interest in Blue Ocean Wireless,
respectively.  Net cash used in investing activities amounted to Php35,790
million in 2006 primarily comprised of capital expenditures in the amount of
Php20,674 million, and payments for purchase of investments in the amount of Php10,890
million in relation to the purchase of the following in 2006: (a) a 100% equity
interest in SPi and CyMed aggregating Php8,847 million; (b) the final
settlement of the acquisition of Smart Broadband of Php1,201 million; (c) the
purchase of a 60% equity interest in Level Up! of Php383 million; (d) and the
acquisition of the remaining 20% equity in Wolfpac for Php30 million.  </p>

<p style='margin-left:0in;text-indent:.5in;line-height:
94%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
consolidated capital expenditures in 2007 totaled Php24,824 million, an increase
by Php4,150 million, or 20%, from Php20,674 million in 2006 primarily due to
Smart&#146;s and PLDT&#146;s higher capital spending.  Smart's capital spending of
Php14,179 million in 2007 was used primarily to further upgrade its core,
access and transmission network facilities, expand its wireless broadband
facilities and develop IT platforms for new businesses.  PLDT's capital
spending of Php9,912 million was principally used to finance the expansion and
upgrade of its submarine cable facilities, fixed line data and IP-based network
services.  ePLDT and its subsidiaries&#146; capital spending of Php678 million was
primarily used to fund its continued customer interaction services expansion.
The balance represented other subsidiaries&#146; capital spending.  Our consolidated
capital expenditures in 2006 totaled Php20,674 million.  Smart's capital
spending of Php10,506 million in 2006 was used primarily to rollout its 3G
network, further upgrade its core and transmission network facilities and
expand its wireless broadband facilities, to increase capacity and coverage in
respect of basic and advanced wireless services.  PLDT's capital spending of
Php8,902 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 Php1,132 million was primarily used to fund its continued customer
interaction service expansion.  The balance represented other subsidiaries&#146;
capital spending.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
part of our growth strategy, we may from time to time, continue to make
acquisitions and investments in companies or businesses.  </p>

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

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

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On a
consolidated basis, we used net cash of Php44,819 million for financing
activities in 2007, compared to Php45,900 million in 2006.  The net cash used in
financing activities in 2007 was mainly utilized for dividend payments
distributed to PLDT common and preferred stockholders, debt repayments and
interest payments.  The net cash used in financing activities in 2006 was
mainly utilized for debt repayments, dividend payments distributed by PLDT to
its common and preferred stockholders and interest payments by PLDT and Piltel
in line with their debt reduction programs.  </p>

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

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

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Additions to our consolidated long-term debt in 2007
totaled Php7,647 million mainly from Smart's drawings related to the financing
of its network expansion projects.  Payments in respect of principal and
interest of our total debt amounted to Php18,258 million and Php5,891 million,
respectively, in 2007, of which Php12,505 million in principal and Php4,451
million in interest were attributable to PLDT.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our long-term debt decreased by Php19,806 million, or
25%, to Php60,147 million in 2007, largely due to debt amortizations and
prepayments in line with our efforts to reduce our overall debt level, and also
due to the appreciation of the Philippine peso resulting to the lower peso
revaluation of our foreign currency-denominated debts.  The debt levels of
PLDT, Smart and Mabuhay decreased by 35%, 1% and 45% to Php33,975 million,
Php24,995 million and Php1,145 million, respectively, in 2007 compared to the
levels in 2006.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
2007, we conducted a consent solicitation of holders of our 11.375% Notes due
2012, 10.5% Notes due 2009 and 8.35% Notes due 2017, or the Notes, in respect
of amendments to the terms of the Notes that allow PLDT greater flexibility to
make certain restricted payments, pay dividends or distributions, while
reducing PLDT&#146;s permitted leverage ratios pursuant to the terms of the Notes.  These
amendments to the terms of the Notes became effective on December 3, 2007, the
date on which PLDT made the applicable consent payments, after holders of more
than 51% of the aggregate principal amount of the Notes gave their consents for
these amendments to the terms of the Notes prior to the expiration of the
consent solicitation period and after the execution of relevant amendments to
the indentures governing the Notes on November 21, 2007.  </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
May 22, 2007, PLDT entered into loan agreements with The Philippine American Life
and General Insurance Company for Php400 million and The Philam Bond Fund, Inc.
for Php20 million to refinance their respective participations in respect of a
loan agreement relating to PLDT&#146;s borrowing of Php1,270 million in the form of
peso fixed rate corporate bonds, which were repaid on June 12, 2007.  Both
refinancing loans will mature on June 12, 2014.</p>

<p style='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 15, 2007, Smart issued Php5 billion unsecured fixed rate corporate
notes, made up of Series A notes amounting to Php3.8 billion and Series B notes
amounting to Php1.2 billion with five and ten year terms, respectively.  Series
A notes were priced at 5.625%, while Series B notes were priced at 6.500%.
Funds raised from the issuance of these notes have primarily been for Smart&#146;s
capital expenditures for network improvement and expansion. </p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Approximately Php24,398 million principal amount of
our consolidated outstanding long-term debt in 2007 is scheduled to mature over
the period from 2008 to 2011.  Of this amount, Php11,165 million is attributable
to PLDT, Php12,056 million to Smart and the remainder to Mabuhay Satellite and
ePLDT.</p>

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

<p style="margin-top:0;margin-bottom:0">For a more detailed discussion of
our long-term debt including the scheduled maturities of our outstanding
consolidated long-term debt as at December 31, 2007, see <i>Note 18 &#150;
Interest-bearing Financial Liabilities &#150; Long-term Debt </i>to the accompanying
audited consolidated financial statements in Item 18.</p>

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

<p style='line-height:normal' style="margin-top:0;margin-bottom:0"><i>Debt Covenants</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
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 PFRS, 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.  Furthermore, certain of PLDT&#146;s debt instruments contain
provisions pursuant to which PLDT may be required to repurchase or prepay
certain indebtedness in case of a change in control of PLDT.</p>

<p style='text-indent:.25in;line-height:10.0pt' 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">Please see <i>Note 18 &#150; Interest-bearing
Financial Liabilities &#150; Debt Covenants </i>to the accompanying audited
consolidated financial statements in Item 18 for a detailed discussion of our debt
covenants.</p>

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

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

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

<p style='text-indent:.5in' 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' style="margin-top:0;margin-bottom:0">As a
result of our strong cash flows and lower debt levels, we have increased our
dividend payout ratio to 70% of 2007 earnings per share from 60% of 2006
earnings per share.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
August 7, 2007, we declared a special cash dividend of Php40 per share
attributable to our 2006 earnings.  This special cash dividend was an
incremental dividend payout representing approximately 25% of our 2006 earnings
per share.  As a result of such special dividend declaration, our total
dividend payments attributable to our 2006 earnings increased to Php140 per
share, inclusive of the regular dividends paid out of our 2006 earnings
aggregating Php100 per share.  With respect to our 2007 earnings, in addition
to the Php60 per share dividend declared on August 7, 2007, we declared on
March 4, 2008 a regular cash dividend of Php68 per share and a special cash
dividend of Php56 per share, in the aggregate representing close to a 100% of
our 2007 earnings per share.</p>

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

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Cash dividend payments in 2007 amounted to Php28,470
million, of which Php28,167 million and Php303 million were paid to common and
preferred shareholders, respectively.  Cash dividend payments in 2006 amounted
to Php14,913 million, of which Php14,447 million and Php466 million were paid
to common and preferred shareholders, respectively.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">For
further details in respect of our dividend declarations and payments, please
refer to Item 3. &#147;Key Information &#150; Dividends Declared&#148; and Item 3. &#147;Key
Information &#150; Dividends Paid&#148;.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">PLDT
raised Php73 million and Php62 million from the exercise by certain officers
and executives of stock options in 2007 and 2006, respectively.  In addition,
through our subscriber investment plan 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 Php3 million and Php4 million in 2007 and 2006,
respectively.</p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2007, there were 188.7 million PLDT common shares outstanding
compared to 188.4 million common shares outstanding as at December 31, 2006.  See
<i>Note 17 &#150; Equity</i> to the accompanying audited consolidated financial
statements in Item 18 for further discussion.</p>

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

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

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

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">None of our existing indebtedness contains
provisions under which credit rating downgrades would trigger a default,
changes in applicable interest rates or other similar terms and conditions.  </p>

<p align=left style='text-align:left;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">PLDT&#146;s current credit ratings are as follows:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:454.5pt;margin-left:5.4pt;border-collapse:collapse'>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>Rating Agency</u></b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b><u>Credit Rating</u></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"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>Outlook</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 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=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Standard &amp; Poor&#146;s Ratings Services, or Standard &amp; Poor&#146;s</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign Currency Rating</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">BB+</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Stable</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Moody&#146;s Investor Service, or Moody&#146;s</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign Currency Senior Unsecured Debt Rating</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Ba2</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Positive</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Local Currency Corporate Family Rating</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Baa2</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Positive</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Fitch Ratings, or Fitch</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term Foreign Currency Rating</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">BB+</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Stable</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term Local Currency Rating</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">BB+</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Stable</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term Foreign Currency Issuer Default Rating, or IDR</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">BB+</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Stable</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Long-term Local Currency
 Issuer Default Rating</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">BBB</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Stable</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">National Long-term Rating </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">AAA(ph1)</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Stable</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">On
March 19, 2008, Moody&#146;s affirmed our local currency rating and changed its
outlook from stable to positive at the same time affirming our foreign currency
bond Ba2 rating with a positive outlook.  The rating action reflects our
ability to achieve ongoing revenue growth and fund high levels of capital expenditures
internally, as well as the ability to increase dividend payments to our
shareholders.  On January 28, 2008, Moody&#146;s affirmed our foreign currency
senior unsecured debt rating from stable to positive following the change in
the outlook of the Philippines Ba3 country ceiling for foreign currency bonds
to positive from stable. </p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
November 6, 2007, Standard and Poor&#146;s, Moody&#146;s and Fitch affirmed some of our
local and foreign currency ratings following the consent solicitation
announcement relating to the Notes to effect certain proposed amendments that
would give us more flexibility to make investments and dividend payments.  The
affirmation also reflects our healthy financial and dominant market positions
though counterbalanced by the uncertainty of the Philippines&#146; political and
economic environment.  However, any future upward ratings would be more
reflective of a stabilizing economic, political and social environment reducing
such uncertainties.</p>

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

<p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Off-balance Sheet Arrangements</i></p>

<p align=left style='text-align:left;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">There
are no off-balance sheet arrangements that have or are reasonably likely to
have any current or future effect on our financial position, results of
operations, cash flows, changes in stockholders&#146; equity, liquidity, capital
expenditures or capital resources that are material to investors.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Contractual Obligations and Commercial Commitments </i></b></p>

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

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

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows our contractual obligations
as at December 31, 2007:</p>

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

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;margin-left:4.5pt;border-collapse:collapse'>

 <tr style='height:10.25pt'>
 <td   valign=bottom style=' 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:none;
 border-bottom:solid windowtext 1.0pt;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=' 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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Less than <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>1</b><b>-</b><b>3<br>
 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>3</b><b>-</b><b>5 <br>
 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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>More than <br>
 5 years</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   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"><b>(in millions)</b></p>
 </td>
 </tr>

 <tr style='height:8.1pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>December 31, 2007</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Long-term debt(1):</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Php</i><i>86,334</i></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Php</i><i>11,441</i></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Php</i><i>22,662</i></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Php</i><i>21,218</i></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Php</i><i>31,013</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Principal</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">64,619</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,872</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15,883</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,267</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">25,597</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Interest</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">21,715</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,569</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,779</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,951</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,416</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Lease obligations: </i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>6,554</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>2,992</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>1,515</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>1,040</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>1,007</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating lease </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,614</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,067</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,500</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,040</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,007</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Finance lease </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 940</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">925</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Unconditional purchase obligations(2)</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i> 77</i><i>6</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>113</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>41</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>249</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>373</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Other obligations:</i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>49,488</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>28,023</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>10,835</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>4,294</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>6,336</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Mandatory conversion and purchase of shares</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,070</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,070</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative financial liabilities(3):</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,638</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">   8</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,938</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,240</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,452</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term currency swaps </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,170</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,527</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,191</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,452</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term foreign currency options </p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 318</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">318</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest rate swap</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 142</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">93</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <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=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Forward foreign exchange contracts</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">   8</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Various trade and other obligations:</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,780</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">26,945</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,897</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  54</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,884</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Suppliers and contractors</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,371</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,816</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,555</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Utilities and related expenses</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,532</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,453</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">75</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Employee benefits </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,778</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,778</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Customers&#146;
 deposits </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,201</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">267</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,884</p>
 </td>
 </tr>
 <tr style='height:.1in'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Carriers
 </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,187</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,187</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Dividends</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,071</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,071</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,640</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,640</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' 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;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php</b><b>143,15</b><b>2</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php</b><b>42,569</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php</b><b>35,053</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php</b><b>26,800</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php</b><b>38,729</b></p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in;text-indent:-13.7pt;line-height:
10.0pt' style="margin-top:0;margin-bottom:0">____________</p>

<p style='margin-left:4.5pt' 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:4.5pt' style="margin-top:0;margin-bottom:0"><i>(2)</i><i>   Based on the Amended
ATPA with AIL.</i></p>

<p style='margin-left:4.5pt' style="margin-top:0;margin-bottom:0"><i>(3)</i><i>   Gross
liabilities before any offsetting application.</i></p>

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

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">For
a detailed discussion of our contractual obligations, please see <i>Note 24 &#150;
Contractual Obligations and Commercial Commitments </i>to the accompanying
audited consolidated financial statements in Item 18.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>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:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">As at December 31, 2007, our outstanding
commercial commitments, in the form of letters of credit, amounted to Php3,782
million.  These commitments will expire within one year.</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"><a name="OLE_LINK22"></a><a name="OLE_LINK21"></a><a
name="_Toc170286162"></a><a name="_Toc75779219"></a><a name="_Toc46082278"><b>Impact of Inflation and Changing Prices</b></a></p>

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

<p 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, we do not believe inflation has had a
material impact on our operations.  The average inflation rate in the Philippines in 2007 was 2.8% compared to 6.2% in 2006.</p>

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

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286163"></a><a
name="_Toc75779222"></a><a name="_Toc46082281"><b>Item
6.       Directors, Senior Management and Employees</b></a><b> </b></p>

<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"><a name="_Toc170286164"></a><a
name="_Toc75779223"></a><a name="_Toc46082282"><b>Directors,
Key Officers and Advisors</b></a></p>

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

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following are the names, ages and periods of
service, of the current directors/independent directors of PLDT, all of whom,
except for Mr. Takashi Ooi, had been nominated for re-election and were
re-elected at the annual meeting of shareholders that was held on June 12, 2007:
</p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:459.0pt;border-collapse:collapse'>

 <tr>
 <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"><b><u>&nbsp;</u></b></p>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>Name</u></b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b><u>Age</u></b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Period during which<br>
 <u>individual has served as such</u></b></p>
 </td>
 </tr>
 <tr>
 <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">&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  valign=top 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=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:18.6pt;text-indent:-9.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>

 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Manuel V. Pangilinan</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">61</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:18.6pt;text-indent:-9.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">November 24, 1998 to present </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Napoleon L. Nazareno</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">58</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:18.6pt;text-indent:-9.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">November 24, 1998 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Helen Y. Dee</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">63</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:18.6pt;text-indent:-9.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">June 18, 1986 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Ray C. Espinosa </p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">51</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:18.6pt;text-indent:-9.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">November 24, 1998 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Tatsu
 Kono</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:18.6pt;text-indent:-9.6pt' style="margin-top:0;margin-bottom:0">March 28, 2006 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Rev.
 Fr. Bienvenido F. Nebres, S.J.*</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">67</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:18.6pt;text-indent:-9.6pt' style="margin-top:0;margin-bottom:0">November 24, 1998 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Takashi
 Ooi(1)</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">46</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:18.6pt;text-indent:-9.6pt' style="margin-top:0;margin-bottom:0">November 6, 2007 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Corazon S. de la Paz-Bernardo </p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">66</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:18.6pt;text-indent:-9.6pt' style="margin-top:0;margin-bottom:0">September 25, 2001 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Oscar
 S. Reyes*</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">61</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:18.6pt;text-indent:-9.6pt' style="margin-top:0;margin-bottom:0">April 5, 2005 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Albert
 F. del Rosario</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">68</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:18.6pt;text-indent:-9.6pt' style="margin-top:0;margin-bottom:0">November 24, 1998 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Pedro
 E. Roxas*</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">51</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:18.6pt;text-indent:-9.6pt' style="margin-top:0;margin-bottom:0">March 1, 2001 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Alfred
 V. Ty*</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">40</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:18.6pt;text-indent:-9.6pt' style="margin-top:0;margin-bottom:0">June 13, 2006 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Ma. Lourdes C. Rausa-Chan</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:18.6pt;text-indent:-9.6pt' style="margin-top:0;margin-bottom:0">March 6, 2007 to present</p>
 </td>
 </tr>
</table></center></div>

<p style='text-align:justify' style="margin-top:0;margin-bottom:0"><u>___________</u></p>

<p style='margin-left:.5in;text-align:justify;text-indent:-.5in' style="margin-top:0;margin-bottom:0"><i>*    Independent Director</i></p>

<p style='margin-left:13.5pt;text-align:justify;text-indent:
- -13.5pt' style="margin-top:0;margin-bottom:0"><i>(1) Mr. Takashi Ooi replaced Mr.
Tsuyoshi Kawashima (who served as director from July 11, 2006 until his
resignation effective November 5, 2007), as director effective November 6, 2007
and will serve as such for the unexpired term of Mr. Kawashima.</i></p>

<p style='text-align:justify;line-height:10.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The names, ages, positions and periods of service of
the key officers and advisors of PLDT as at February 29, 2008 are as follows: </p>

<p style='text-align:justify;line-height:6.0pt;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:477.0pt;;border-collapse:collapse'>

 <tr>
 <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"><b><u>&nbsp;</u></b></p>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>Name</u></b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b><u>Age</u></b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>Position(s)</u></b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:18.6pt;text-align:center;
 text-indent:-18.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in'>
 <p style='margin-left:18.6pt;text-indent:-18.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Period during which</b></p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>individual has served as such</u></b></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">&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  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 style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>

 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Manuel V. Pangilinan</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">61</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Chairman of the Board</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">February 19, 2004 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Napoleon
 L. Nazareno</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">58</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">President and Chief
 Executive Officer</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">February 19, 2004 to present
 </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">President and Chief
 Executive Officer of Smart</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">January 2006 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Ernesto
 R. Alberto</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">46</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">May 15, 2003 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Corporate Business Head</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">May 15, 2003 to January 31,
 2008</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Customer Sales and Marketing
 Group Head</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">February 1, 2008 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Rene
 G. Ba&#241;ez</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">January 25, 2005 to present </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Chief Governance Officer </p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">October 5, 2004 to March 3,
 2008 </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Administration and Materials
 Management Group Head</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">January 1, 2008 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Anabelle L. Chua </p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">47</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">February 26, 2002 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Treasurer </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">February 1, 1999 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Corporate Finance and
 Treasury Head</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">March 1, 1998 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Smart Chief Financial
 Officer </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">December 1, 2005 to present </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Jun
 R. Florencio</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">June 14, 2005 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Audit and Assurance Head </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">September 1, 2000 to
 February 15, 2006</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Internal Audit and Fraud
 Risk Management Head</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">February 16, 2006 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Menardo G. Jimenez, Jr.</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">December 9, 2004 to present </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Corporate Communications and
 Public Affairs Head</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">December 1, 2001 to June 15,
 2004</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Retail Business Head</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">June 16, 2004 to December
 31, 2007 </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Business Transformation
 Office</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">January 1, 2008 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">George
 N. Lim</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">55</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">February 26, 1999 to present
 </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Network Services Group Head </p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">February 1, 2003 to December
 31, 2007 </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Business Transformation
 Office</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">January 1, 2008 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Alfredo
 S. Panlilio</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President </p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">May 8, 2001 to present </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">International and Carrier
 Business Group Head</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">February 1, 2003 to June 15,
 2004</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">PLDT Global Corp. President </p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">June 16, 2004 to present </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Claro Carmelo P. Ramirez</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">47</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Senior Vice President </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">July 1, 1999 to present </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Retail Business Group Head</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">February 1, 2003 to June 15, 2004</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">International and Carrier Business Group Head</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">June 16, 2004 to December 4, 2005</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Consumer Affairs Group Head </p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">December 5, 2005 to December
 31, 2007 </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Office of the President</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">January 1, 2008 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Ma. Lourdes C. Rausa-Chan</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President </p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">January 5, 1999 to present </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Corporate Secretary </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">November 24, 1998 to present
 </p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Corporate Affairs and Legal
 Services Head</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">July 5, 1999 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Chief Governance Officer</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">March 4, 2008 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Victorico
 P. Vargas</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">56</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Senior Vice President</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">February 15, 2000 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Human Resources Group Head</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">February 15, 2000 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">International and Carrier
 Business Head</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">March 1, 2007 to December
 31, 2007</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Business
 Transformation Office Head</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">January 1, 2008 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">June
 Cheryl A. Cabal-Furigay</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">34</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Vice
 President</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">June 14, 2005 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Financial Reporting and
 Planning Head</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">May 1, 2002 to November 15,
 2006</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Financial Reporting and Controllership
 Head</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">November 16, 2006 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Christopher
 H. Young</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Chief Financial Advisor</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">November 24, 1998 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Rolando
 G. Pe&#241;a</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Network Services Head of
 Smart</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">September 1, 1994
 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">Customer Service Assurance
 Group Head</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">January 1, 2008
 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Ramoncito
 S. Fernandez</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">55</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Administration and Materials
 Management Head of Smart</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">June 6, 2000 to
 present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">International and Carrier
 Business and Global Access Head</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">January 1, 2008
 to present</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Danilo
 J. Mojica</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">47</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Wireless Consumer Head of
 Smart</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">June 1, 2006 to present</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0">Under the Shareholders Agreement
entered into among First Pacific and certain of its affiliates, or the FP
Parties, NTT Communications and NTTC-UK on September 28, 1999, as amended by
the Cooperation Agreement dated January 31, 2006, NTT Communications is
entitled to nominate two directors to the PLDT board of directors and the FP
Parties are entitled to nominate six directors.  The Shareholders Agreement
also entitles NTT Communications to nominate two directors to the board of
directors of Smart and, subject to specified conditions, one member to the
board of directors of all other PLDT subsidiaries.  However, as a result of the
Cooperation Agreement, in respect of NTT Communications&#146; right to nominate two
directors to each of the board of directors of PLDT and Smart, respectively,
NTT Communications and the FP Parties agreed to vote as a PLDT shareholder,
lobby the directors of PLDT and otherwise use reasonable efforts to procure a
shareholders&#146; vote in favor of replacing on each of the board of directors of
PLDT and Smart, respectively, one NTT Communications nominee with one NTT DoCoMo
nominee.  Under the Shareholders Agreement, NTT Communications is also entitled
to appoint members or advisors of certain PLDT management and board committees,
including the audit, governance and nomination, executive compensation and technology
strategy committees described below under &#147;&#151; Audit, Governance and Nomination,
Executive Compensation and Technology Strategy Committees,&#148; and as a result of
the Cooperation Agreement, the FP Parties and NTT Communications agreed to use
reasonable efforts to procure that NTT DoCoMo be entitled to appoint one
individual, who may be replaced at any time, to attend any board committee of
PLDT as a member, advisor or observer.  Moreover, the Cooperation Agreement
provides that upon NTT Communications, NTT DoCoMo and their subsidiaries owning
in the aggregate 20% or more of the shares of PLDT&#146;s common stock and for as
long as NTT Communications, NTT DoCoMo and their subsidiaries continue to own
in the aggregate 17.5% of the shares of PLDT&#146;s common stock then outstanding, NTT
DoCoMo will be entitled to additional rights under the Strategic Agreement and
the Shareholders Agreement, including the right to nominate one additional NTT
DoCoMo nominee to the board of directors of each of PLDT and Smart.  Pursuant
to public filings made with the U.S. SEC by NTT Communications and NTT DoCoMo,
as at January 30, 2008, NTT Communications and NTT DoCoMo together beneficially
owned 20.70% of the outstanding shares of PLDT&#146;s common stock.  As a result,
NTT DoCoMo is currently entitled to nominate one additional NTT DoCoMO nominee
to the board of directors of each of PLDT and Smart. <b> </b>Under the Shareholders
Agreement and the Cooperation Agreement, each party has agreed, under certain
circumstances, to vote its shares of common stock in favor of the nominees
designated by the other parties. For more information about the Cooperation
Agreement, see Item 7. &#147;Major Shareholders and Related Party Transactions &#150;&#150;
Related Party Transactions.&#148;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
business address of Rolando G. Pe&#241;a, Ramoncito S. Fernandez and Danilo
J. Mojica is Smart Tower II, Ayala Avenue, Makati City, Philippines.  The business address of each of the other directors, key officers and advisors
identified above is the Ramon Cojuangco Building, Makati Avenue, Makati City , Philippines.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
following is a brief description of the business experience during the past
five years of each of our directors, key officers and advisors.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Manuel V. Pangilinan</b> assumed the
chairmanship of the board of directors of PLDT in February 2004 after serving
as its president and chief executive officer for over five years from November
1998 to February 2004.  He also serves as chairman of Smart, Piltel, ePLDT,
Metro Pacific Investment Corporation and Landco Pacific Corporation, as well as
chairman of the governance and nomination and technology strategy committees of
PLDT.  Mr. Pangilinan founded First Pacific in 1981 and was appointed as
executive chairman until June 2003, when he was named chief executive officer
and managing director of First Pacific.  He also holds the position of
president commissioner of P. T. Indofood Sukses Makmur Tbk, the largest food company
in Indonesia.  Mr. Pangilinan is also a member of the board of overseers of the
 Wharton School of Finance &amp; Commerce, University of Pennsylvania and is chairman
of the board of trustees of Ateneo de Manila University.  He was recently
appointed by the Office of the President of the Philippines to the Board of the
Regents of the University of the Philippines.  He also serves as chairman of
Medical Doctors Inc. (which operates the Makati Medical Center), the Hong Kong
Bayanihan Trust and the Philippine Business for Social Progress.  Mr.
Pangilinan has received numerous prestigious awards including the Ten
Outstanding Young Men of the Philippines (TOYM) Award for International Finance
(1983), the Presidential Pamana ng Pilipino Award by the Office of the President
of the Philippines (1996), an Honorary Doctorate in Humanities by the San Beda
College (2002), Best CEO in the Philippines by Institutional Investor (2004),
CEO of the Year (Philippines) by Biz News Asia (2004), People of the Year by
People Asia Magazine (2004), Distinguished World Class Businessman Award by the
Association of Makati Industries, Inc. (2005), Order of Lakandula (Rank of a
Komandante) by the Office of the President of the Philippines (2006), and an Honorary
Doctorate in Humanities by the Xavier University (2007).  Recently, he was
voted as Corporate Executive Officer of the Year (Philippines) at the 2007
Best-Managed Companies and Corporate Governance Polls conducted by Asia Money.
Mr. Pangilinan graduated cum laude from the Ateneo de Manila University, with a
Bachelor of Arts degree in Economics.  He received his Master&#146;s degree in
Business Administration from the Wharton School of Finance and Commerce, University of Pennsylvania.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Napoleon L. Nazareno</b> was appointed as
president and chief executive officer of PLDT on February 19, 2004 and is
concurrently the president and chief executive officer of Smart and Piltel,
positions he has held since January 2000 and November 2004, respectively.  He
also serves as president of ACeS Philippines and chairman of Wolfpac, SBI, I-Contacts
and Mabuhay Satellite.  He also serves as a member of the technology strategy
committee 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">Mr.
Nazareno&#146;s business experience spans over 30 years and cuts across a broad
range of industries, namely, packaging, bottling, petrochemicals, real estate
and, in the last decade, telecommunications and information technologies.  In
1981, he started a successful career in the international firm Akerlund &amp;
Rausing, occupying senior management to top level positions and, in 1989,
became the president and chief executive officer of Akerlund &amp; Rausing (Philippines), Inc.  In August 1995, he moved to Metro Pacific Corporation where he served
as president and chief executive officer until December 1999.  </p>

<p style='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
November 2004, Mr. Nazareno was appointed by President Gloria Macapagal-Arroyo
as Private Sector Representative of the Public-Private Sector Task Force for
the Development of Globally Competitive Philippine Service Industries.  He was
voted Corporate Executive Officer of the Year in the Philippines for three
consecutive years in the 2004, 2005 and 2006 Best-Managed Companies and
Corporate Governance Polls conducted by <i>AsiaMoney</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">Mr.
Nazareno received his Master&#146;s degree in Business Management from the Asian
Institute of Management and completed the INSEAD Executive Program of the
European Institute of Business Administration in Fountainbleu, France.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Ms.
Helen Y. Dee</b> is the chairman and
president and/or chief executive officer of Hydee Management &amp; Resources,
Inc., House of Investments, Inc., Tameena Resources, Inc., Grepalife Asset
Management Corporation and Grepalife Fixed Income Fund Corporation.  She is
also chairman of Malayan Insurance Company, Rizal Commercial Banking
Corporation, Landev Corporation, Manila Memorial Park, Inc., Mapua Information
Technology Center, Inc. and Hi-Eisai Pharmaceuticals, Inc. and the
vice-chairman of Pan Malayan Management and Investment Corporation.  She is the
president of Moira Management, Inc. and YGC Corporate Services, Inc.  She sits
on the boards of EEI Corporation, Petro Energy Resources Corp., Nippon Life
Insurance Co., South Western Cement Corp., Seafront Resources Corp., Malayan
Insurance Co. Inc., MICO Equities, Inc., Hermoza Ecozone Development
Corporation, La Funeraria Paz, Inc., Honda Cars Philippines, Inc. and Isuzu
Philippines, Inc.  Ms. Dee received her Master&#146;s degree in Business
Administration from De La Salle University.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Atty.
Ray C. Espinosa</b> is the president of
ePLDT and the chairman of ePLDT subsidiaries Parlance, Vocativ, ePLDT Ventus,
SPi, Infocom, Digital Paradise, Airborne Access and Level Up!.  He also serves
as a member of the technology strategy committee.  He is a member of the boards
of Cyber Bay Corporation, Nation Broadcasting Corporation, Lepanto Consolidated
Mining Co., Mediaquest Holdings, Inc., Metro Pacific Resources, Inc., PTIC and several
other companies.  He is vice-chairman of the PLDT Beneficial Trust Fund.  Until
June 30, 2000, he was a partner and member of the Executive Committee of the law
firm SyCip Salazar Hernandez &amp; Gatmaitan.  Mr. Espinosa received his Master&#146;s
of Laws degree from the University of Michigan Law School.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Tatsu Kono </b>is the managing director
of the corporate sales department, corporate marketing division of NTT DoCoMo.
He joined NTT DoCoMo in 2000 and served as executive director of the global investment
group, global business department.  Prior to that, he occupied various
positions in Kokusai Denshin Denwa Co., Ltd., or KDD, and became the general
manager of the Sales Promotion Department in 1989, the managing director of the
Kyoto Sales Office in 1990 and the managing director of the Tokyo Sales Office
in 1998.  He serves as an advisor to the audit committee and a member of each
of the governance and nomination, executive compensation and technology
strategy committees of PLDT.  Mr. Kono
received his Bachelor of Law degree from Waseda University.   </p>

<p style='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>Rev.
Fr. Bienvenido F. Nebres, S.J.</b> has
been a director of PLDT since November 24, 1998.  He is the chairman of the audit
committee and a member of the governance and nomination committee of PLDT.  He
is the president and a member of the board of trustees of the Ateneo de Manila
University and the vice chairman of the board of trustees of the Asian
Institute of Management.  He is also a member of the board of trustees of the
Manila Observatory, Philippine Institute of Pure and Applied Chemistry and
several private educational institutions including Georgetown University, Regis University, Assumption College, Stonyhurst School and Sacred Heart School &#150; Jesuit Cebu City.  Rev. Fr. Nebres received his Ph.D in Mathematics from Stanford University.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Takashi Ooi</b> has been a director of
PLDT since November 6, 2007.  He built his career in NTT and its subsidiaries
NTT Communications and NTT America.  He is presently the vice president for
network integration and solutions, global business division of NTT Com, and is
responsible for product/service development and proposal/installation/delivery
of global network for global multi-national companies.  From March 2001 to June
2006, he was vice president for product management, global business division of
NTT Com.  He served as director of NTT America and technical advisor to
Teligent, Inc. from November 1997 to February 2001.  Prior to that, he held
managerial positions in various departments of NTT Com.  Mr. Ooi obtained his
Master&#146;s of Science degree in Physics from the University of Tokyo and his Master&#146;s of Business Administration degree from Boston University.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Ms.
Corazon S. de la Paz-Bernardo</b> has
been a director of PLDT since September 25, 2001.  She is the vice chairman of the Social Security
Commission, the president and chief executive officer of the Social Security
System and the vice chairman of Banco de Oro Unibank, Inc.  She is an advisor
to the audit committee of PLDT.  She has been re-elected president of the
International Social Security Association, an association based in Geneva, Switzerland, to serve as such for a second consecutive three-year term commencing
in September 2007.  Until June 2001, she was the chairman and senior partner of
Joaquin Cunanan &amp; Co., a member firm of PricewaterhouseCoopers Worldwide.
She is a director of San Miguel Corporation, Ayala Land, Inc., Philippine
Health Insurance Corporation, Philex Mining Corporation, Philex Gold, Inc.,
Republic Glass Holding Corp., Equitable Card Network, Inc., and Ionics
Circuits, Inc.  Ms. De la Paz-Bernardo is a certified public accountant and
received her Master&#146;s degree in Business Administration from Cornell University.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Oscar S. Reyes </b>has been a director of
PLDT since April 5, 2005 and an independent director of Smart.  He serves as a member
of each of the audit, governance and nomination, executive compensation and
technology strategy committees of PLDT.  He is the chairman of Link Edge, Inc.
and MRL Gold Phils. Inc.  He is also director in various public companies and
private firms engaged in banking, insurance, financial and business advisory
services, beverages, electrical products manufacturing, mining and a water
distribution utility.  These include the Bank of the Philippine Island, Mutual
Fund Co. of the Philippines, Sun Life of Canada (Phils.) Inc., Sun Life
Prosperity Dollar Advantage and Dollar Abundance Fund, Inc., Sun Life Financial
Plans, Inc., Pepsi Cola Products Phils. Inc., First Philippine Electric Co.,
Basic Energy Corp., Mindoro Resources Ltd., in one archipelago mineral, Inc.,
and Manila Water Corporation.  He was the country chairman of the Shell
Companies in the Philippines from 1997 to 2001 and concurrently the Managing
Director of Shell Philippines Exploration B.V. until 2002.  From 2002 to 2004,
he was the senior management adviser of Shell Philippines Exploration B.V. and
the CEO adviser of Pilipinas Shell Petroleum Corporation.  Mr. Reyes completed
the Master&#146;s in Business Administration program of the Ateneo Graduate School
of Business and the Program in Management Development of the Harvard Business School, and holds a degree in International Business from Waterloos University.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Albert F. del Rosario</b> has been a
director of PLDT since November 24, 1998.  He is also the chairman of the board
of trustees of the PLDT Beneficial Trust Fund and the executive compensation
committee of the board of directors of PLDT.  He is the chairman of the board of Gotuaco del Rosario and Associates,
Inc., Philippine Indocoil Corporation, Business World Publishing Corporation, and
Stratbase, Inc., the vice chairman of the board of Asia Insurance (Philippines) Corporation and the president of ADR Holdings, Inc., ARS Reinsurance Brokers,
Inc., and Philippine Telecommunications Investment Corporation.  From 2001 to
2006, he served as the Ambassador Plenipotentiary and Extraordinary of the
Republic of the Philippines to the United States of America.  Mr. del Rosario
also sits on the boards of Infrontier (Philippines) Inc., LMG Chemicals
Corporation, Six Harmonies Holdings, Inc., Landco Pacific Corporation and Metro
Pacific Investments Corporation.  Mr. del Rosario received his Bachelor of
Science degree in Economics from New York University.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Pedro E. Roxas</b> has been a director of
PLDT since March 1, 2001.  He serves as a member of the audit and executive compensation
committee of the board of directors of PLDT.  He is the chairman and/or president
and chief executive officer of various business organizations in the fields of
agri-business, sugar manufacturing and real estate development, including Roxas
Holdings Inc., CADP Group Corp., Roxaco Land Corporation, Roxas and Company,
Inc. and Fuego Land Corporation.  He is also a director of Banco de Oro Private
Bank.  Mr. Roxas received his Bachelor of Science degree in Business
Administration from the University of Notre Dame.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Alfred V. Ty </b>has been a director of
PLDT since June 13, 2006.  He is a member of the governance and nomination and
executive compensation committees of the board of directors of PLDT.  He is the
chairman of Asia Pacific Top Management International Resources Corporation,
vice chairman of Toyota Motor Philippines Corporation, the president of
Federalland, Inc. and the corporate secretary of Metropolitan Bank and Trust
Corporation.  </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>Atty.
Ma. Lourdes C. Rausa-Chan</b> has been a director of PLDT since March 6, 2007.  She
is senior vice president for corporate affairs
and legal services and the general counsel and corporate secretary of PLDT.
She also serves as corporate secretary of several subsidiaries of PLDT.  In
March 2008, she was appointed as chief governance officer of PLDT and a
non-voting member of the governance and nomination committee of the board of
directors of PLDT.  Prior to joining PLDT in November 1998, she was the group
vice president for legal affairs of Metro Pacific Corporation for 11 years.  She
obtained her Bachelor of Arts and Bachelor of Laws degrees from the University
of the Philippines.   </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Ernesto R. Alberto</b> is a senior vice
president of PLDT.  He was appointed in February 2008 as head of our customer sales
and marketing group which was created to consolidate and synchronize all
revenue generation relationship initiatives of PLDT, including product/market
development, product management, marketing, sales and distribution, and
customer relationship management.  He was the corporate business head of PLDT
from May 2003 until January 31, 2008.  He has over 20 years of work experience
in the areas of corporate banking, relationship management and business
development.  Prior to joining PLDT in 2003, he was a vice president and head
of the national corporate group of Citibank N.A., Manila from 1996 to May 2003.
He previously served as vice president and head of the relationship management group
of Citytrust Banking Corporation.  Mr. Alberto holds directorships in certain subsidiaries
of PLDT.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Rene G. Ba&#241;ez </b>is a senior vice
president of PLDT.  He<b> </b>was appointed
as administration and materials management group head in January 2008.  He was
the chief governance officer of PLDT from October 5, 2004 to March 3, 2008, a
non-voting member of the governance and nomination committee until March 28,
2008 and was the head of the support services and tax management group of PLDT
from January 1999 to January 2001.  He served as Commissioner of the Philippine
Bureau of Internal Revenue from February 2001 to August 2002.  Prior to joining
PLDT, he was the group vice president for tax affairs of Metro Pacific
Corporation for 3 years until December 1998.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Ms.
Anabelle L. Chua</b> is the treasurer of
PLDT and a senior vice president.  She concurrently holds the position of chief
financial officer of Smart.  She holds directorships in several subsidiaries
and affiliates of PLDT, is a member of the board of trustees of the PLDT
Beneficial Trust Fund, and a director of Philippine Telecommunications
Investment Corporation and the PSE.  She was a vice president at Citibank, N.A.
where she worked for 10 years prior to joining PLDT in 1998.  She has over 15
years of work experience in the areas of corporate finance, treasury, financial
control and credit risk management.</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>Mr.
Jun R. Florencio</b> is a senior vice
president for PLDT&#146;s internal audit and fraud risk management group.  He has
over 20 years of work experience in the areas of external and internal audit,
credit management, information technology, financial management, and
controllership.  He joined the Company in April 1999 and, prior to his present
position, served as the financial reporting and control head up to March 2000.
He previously held various positions in the finance organization of Eastern
Telecommunications and was the financial controller of Smart for 4 years until
March 1999.</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>Mr.
Menardo G. Jimenez, Jr.</b> is a senior
vice president.  He was appointed as business transformation office lead for revenue
composition workstream in January 2008.  He was the retail business head from
June 2004 to December 31, 2007.  He previously worked at GMA Network, Inc.,
where he served as head of a creative services and network promotions, during
which he produced a number of international award-winning campaigns for said
company and its radio and television programs.  In 2005, he won the first CEO
Excel Award (Communications Excellence in Organizations) given by the
International Association of Business Communicators mainly for effectively
using communication strategies in managing the PLDT retail business team to
meet its targets and achieve new heights in the fixed line business.  In 2006,
his further achievements in handling the retail business of PLDT and his work
at Smart as officer-in-charge for marketing were recognized by the Agora Awards
which chose him as its Marketing Man of the Year.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
George N. Lim</b> is a senior vice
president.  He was appointed as business transformation office lead for network
workstream in January 2008.  He was the network services head from February
2003 to December 2007.  He served as head of network development and provisioning
from February 1999 to January 2003 and as head of marketing from December 1993
to February 1999.  Mr. Lim holds directorships in certain subsidiaries of PLDT.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Alfredo S. Panlilio</b> is a senior vice
president.  He has over 15 years of work experience in the fields of business
development and information technology.  He was the corporate business head
from August 2000 to May 2003 and international carrier business head from May
2003 to June 2004.  Prior to joining PLDT in July 1999, he held management
positions at IBM Philippines, Inc. and was the vice president for business development
of the Lopez Communications Group (ABS-CBN Broadcasting, BayanTel and Sky
Cable) until June 1999.   Mr. Panlilio holds directorships in certain subsidiaries
of PLDT and PLDT Global Corporation.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Claro Carmelo P. Ramirez</b> is a senior
vice president.  He has over 20 years of work experience in the field of
marketing.  He worked as associate director for Colgate Palmolive Company, Global
Business development in New York, and as marketing director for Colgate
Palmolive Argentina, S.A.I.C.  Prior to joining PLDT in July 1999, he was the marketing
director of Colgate Palmolive Philippines, Inc.  Mr. Ramirez also holds
directorships in certain subsidiaries of PLDT.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Victorico P. Vargas</b> is a senior vice
president.  He was appointed as business transformation office head in January
2008 in addition to his functions as human resources group head, to lead the
business transformation initiatives of PLDT.  He has over 20 years of work
experience in various industries including insurance, consumer goods, real
estate, banking and finance, telecommunications/information technology.  Prior
to joining PLDT in February 2000, he served as the country human resources director
of Citibank N.A., Manila and spent two years outside the Philippines as country human resources director of Citibank, N.A., Bangkok.  He also serves as a
non-voting member of the governance and nomination and executive compensation
committees of PLDT.  Mr. Vargas is a director of certain subsidiaries of PLDT. </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>Ms.
June Cheryl A. Cabal-Furigay </b>is a
vice president.  She<b> </b>joined PLDT in June 2000
as an executive trainee in the finance group, then served as an executive assistant&nbsp;to
the corporate finance and treasury sector head from December 2000 to April
2002.  Prior to her present position, she was the head of financial reporting
and planning&nbsp;center.  From 1993 to 1997, she was a senior&nbsp;associate
in the business audit and advisory group of Sycip Gorres Velayo &amp; Co.&nbsp;
She is a director and the treasurer of certain subsidiaries of PLDT and the
PLDT-Smart Foundation, Inc.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Christopher H. Young</b> is our chief
financial advisor.  He worked in PricewaterhouseCoopers in London and Hong Kong
from 1979 until 1987, at which time he joined First Pacific in Hong Kong as group financial controller.  He joined Metro Pacific Corporation in 1995 as
finance director, a position he held until he joined us in November 1998.</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Rolando G. Pe&#241;a </b>was appointed in
January 2008 as head of customer service assurance group.  He is responsible
for managing the overall development and implementation of strategies and
programs covering network engineering and operations, facility provisioning and
maintenance, and customer servicing and fulfillment.  Mr. Pe&#241;a has over 20
years of experience in telecommunication operations and was chosen as
Electronics and Communications Engineer for the year 2000 by the Institute of Electronics and Communications Engineers of the Philippines.  From 1999 to 2007,
he was the head of network services division of Smart and prior to joining
Smart in 1994, he was the first vice president in charge of technical operations
of Digital Telecommunications Philippines, Inc.  Mr. Pe&#241;a holds directorships
in certain subsidiaries of PLDT and Smart. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Ramoncito S. Fernandez </b>was appointed
in January 2008, as the head of international and carrier business of PLDT and
Smart in a concurrent capacity.  He is responsible for directing overall
initiatives to optimize business potentials and grow revenues for both
international and domestic carrier markets.  Mr. Fernandez has over 15 years of
experience in materials management, industrial marketing and sales.  He was the
administration and materials management head of Smart from 2000, and of PLDT
from 2004, until December 31, 2007.  He was the executive vice president in
charge of marketing, sales and logistics of Starpack Philippines, Inc. until
June 2000.  He also worked for Union Carbide Philippines in manufacturing and
industrial engineering.  Mr. Fernandez holds directorships in certain subsidiaries
of PLDT and Smart.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Mr.
Danilo J. Mojica </b>is head of the wireless
consumer division of<b> </b>Smart.  Prior to joining Smart in June 2006, he was
the general manager and chief operating officer of Cebu Pacific Air, a
wholly-owned subsidiary of JG Summit Group, from 2003 to 2006 and was president
of Rickett Benckiser Indonesia from 1997 to 2003.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286165"></a><a
name="_Toc75779224"></a><a name="_Toc46082283"><b>Terms
of Office</b></a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The directors of PLDT are elected each year to serve
until the next annual meeting of stockholders and until their successors are
elected and qualified.  The term of office of all officers is coterminous with
that of the board of directors that elected or appointed them.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286166"></a><a name="_Toc75779225"></a><a
name="_Toc46082284"><b>Family Relationships</b></a></p>

<p style='text-indent:.5in;line-height:9.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="OLE_LINK47"></a><a
name="OLE_LINK46">None of the directors, key officers
and advisors of PLDT has any family relationships up to the fourth civil degree
either by consanguinity or affinity</a>.</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286167"></a><a name="_Toc75779226"></a><a
name="_Toc46082285"><b>Compensation</b></a><b> of Key Management Personnel of the PLDT Group</b><b> </b></p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
aggregate compensation paid to our key officers and directors named above, as a
group, for 2007 amounted to approximately Php1,092 million.  </p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Each of the directors, including the members of the advisory board of
PLDT, is entitled to a director&#146;s fee in the amount of Php125,000 for each
meeting of the board attended.  Each of the members or advisors of the audit,
executive compensation, governance and nomination and technology strategy committees
is entitled to a fee in the amount of Php50,000 for each committee meeting
attended.</p>

<p style='margin-left:0in;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">There are no agreements between PLDT Group and any of its key
management personnel providing for benefits upon termination of employment,
except for such benefits to which they may be entitled under PLDT Group&#146;s
retirement and incentive plans.</p>

<p style='margin-left:0in;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"><a name="_Toc170286168"><b>Long-Term
Incentive Plan</b></a><b> </b></p>

<p style='margin-left:0in;text-indent:.5in;line-height:
10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
August 3, 2004, PLDT&#146;s board of directors approved the establishment of the
original LTIP, or Original LTIP, for eligible key executive officers and
advisors of PLDT and its subsidiaries, which is administered by the Executive
Compensation Committee.  The Original LTIP is a four-year cash-settled share
based plan that covered the period from January 1, 2004 to December 31, 2007,
or the Performance Cycle.  The payment of awards was intended to be made at the
end of the Performance Cycle (without interim payments) and contingent upon the
achievement of an approved target increase in PLDT&#146;s common share price by the
end of the performance cycle and a cumulative consolidated net income target for
the Performance Cycle.  </p>

<p style='margin-left:0in;text-indent:.5in;line-height:
10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
August 28, 2006, PLDT&#146;s board of directors approved, in principle, the broad
outline of the PLDT Group&#146;s strategic plans for 2007 to 2009 focusing on the
development of new revenue streams to drive future growth while protecting the
existing core communications business.  To ensure the proper execution of the
three-year plan, particularly with respect to the manpower resources being
committed to such plans, a new LTIP, or New LTIP, upon endorsement of the executive
compensation committee, was approved by the board of directors to cover the
period from January 1, 2007 to December 31, 2009, or New Performance Cycle.
</p>

<p style='margin-left:0in;text-indent:.5in;line-height:
10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">As a result of the establishment of the New LTIP, the board
of directors also approved the early vesting of the Original LTIP by the end of
2006 for those of its participants who were invited to join the New LTIP and
chose to join.  Participants in the Original LTIP who were not invited to join
the New LTIP, or who were invited but chose not to join, remained subject to
the Original LTIP and its original vesting schedule. </p>

<p style='margin-left:0in;text-indent:.5in;line-height:
10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The New LTIP, like the Original LTIP, is a cash plan
that is intended to provide meaningful, contingent, financial incentive
compensation for eligible executives, officers and advisors of the PLDT Group,
who are consistent performers and contributors to the achievement of the long-term
strategic plans and objectives, as well as the functional strategy and goals of
the PLDT Group.  </p>

<p style='margin-left:0in;text-indent:.5in;line-height:
10.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The New LTIP, like the Original LTIP, is administered by the executive compensation
committee which has the authority to determine (a) eligibility and identity of
participants; (b) the award attributable to each participant based on the
participant&#146;s annual base compensation and taking into account such
participant&#146;s seniority, responsibility level, performance potential, tenure
with the PLDT Group, job difficulty and such other measures as the Committee
deems appropriate; (c) the level of achievement of the performance objectives;
and (d) the actual award payable to each participant based on the level of
achievement of the performance objectives.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">LTIP cost for the year ended December 31, 2007 pertaining to the New
LTIP, and for the year ended December 31, 2006 pertaining to the Original LTIP,
amounted to Php1,448 million and Php3,150 million, respectively.  As at
December 31, 2007 and 2006, outstanding LTIP liability amounted to Php1,494
million and Php5,030 million, respectively, see <i>Note 23 &#150; Share-based
Payments and Employee Benefits</i> to the accompanying audited consolidated
financial statements in Item 18.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286169"></a><a name="_Toc75779227"></a><a
name="_Toc46082286"><b>Executive Stock Option
Plan</b></a></p>

<p style='text-indent:.5in;line-height:9.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">On April 27, 1999 and December 10, 1999, the board of
directors and stockholders, respectively, of PLDT approved the executive stock
option plan covering a total of 1,289,745 shares of common stock and the
amendment of the seventh article of the Articles of Incorporation of PLDT
denying the pre-emptive right of holders of shares of common stock to subscribe
for any issue of the 1,289,745 shares of common stock pursuant to the executive
stock option plan.</p>

<p style='margin-left:0in;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">Stock options that
were granted pursuant to the executive stock option plan to management
executives and advisors/consultants of PLDT became fully vested in December
2004.  An option holder may exercise his option to purchase that number of
vested shares of common stock underlying his option, in whole or in part, at
the price of Php814 per share, subject to adjustment upon the occurrence of
specific events described in the executive stock option plan.  The option
exercise period is until December 9, 2009.  The option holder is required to
give written notice of exercise to the executive compensation committee,
indicating the number of vested shares to be purchased, accompanied by payment
in cash of the full amount of the purchase price for those shares.</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="OLE_LINK36"></a><a name="OLE_LINK35">As at February 29, 2008, the total number of shares of
common stock allocated for options granted to the chief executive officer,
directors and key officers of PLDT named below, as a group, under the executive
stock option plan was 206,942.</a></p>

<p style='margin-left:0in;text-indent:.5in;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"><a name="OLE_LINK45"></a><a
name="OLE_LINK9"></a><a name="OLE_LINK8"></a><a name="_Toc170286170"></a><a
name="_Toc75779228"></a><a name="_Toc46082287"><b>Share
Ownership</b></a><b> </b></p>

<p style='text-indent:.5in;line-height:9.0pt;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"><a
name="OLE_LINK34"></a><a name="OLE_LINK33">The
following table sets forth information regarding ownership of our common stock
and preferred stock, as at February 29, 2008, by our continuing directors, key
officers and advisors.  Each individual below owns less than 1% of our
outstanding common and preferred shares. </a></p>

<p style='text-indent:.5in;line-height:9.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:89.34%;margin-left:5.5pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' padding:0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in;
 margin-left:0in;margin-right:7.25pt'>
 <p align=center style='text-align:center;line-height:94%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Name of Owner</b></p>
 </div>
 </td>
 <td   valign=bottom style=' padding:0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Shares of</b></p>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Common Stock</b><b>(1)</b></p>
 </div>
 </td>
 <td   valign=bottom style=' padding:0in 5.5pt 0in 5.5pt'>
 <div style='border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 1.0pt 0in'>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Shares of</b></p>
 <p align=center style='text-align:center;line-height:93%;
 page-break-after:avoid;border:none;padding:0in' style="margin-top:0;margin-bottom:0"><b>Preferred Stock</b></p>
 </div>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p style='text-align:justify;line-height:94%;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.5pt 0in 5.5pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:93%;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Manuel V. Pangilinan</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">219,350</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">360</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Napoleon L. Nazareno</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,487(2)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">495</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Helen Y. Dee</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">22,055(3)</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">180</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Ray C. Espinosa</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">15,243(2)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Takashi Ooi</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Tatsu Kono</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Rev. Fr. Bienvenido F.
 Nebres, S.J </p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,078(4)</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Corazon S. de la Paz-Bernardo</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,146,310(5)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Ma. Lourdes C. Rausa-Chan</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">699(2)</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">350</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Oscar S. Reyes</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt' style="margin-top:0;margin-bottom:0">360</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Albert F. del Rosario</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">130,005</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,560</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Pedro E. Roxas</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">540</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Alfred V. Ty</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Ernesto R. Alberto</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Rene G. Ba&#241;ez</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">540</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Anabelle L. Chua</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,078(2)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Jun R. Florencio</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">530</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Menardo G. Jimenez, Jr.</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">22</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">George N. Lim</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,356(2)</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">360</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Alfredo S. Panlilio </p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">280</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Claro Carmelo P. Ramirez</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,500</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Victorico P. Vargas </p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,878</p>
 </td>
 <td   valign=top style=' background:#E6E6E6;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">180</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">June Cheryl A. Cabal-Furigay</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Christopher H. Young</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">51,813(2)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='margin-right:14.45pt;line-height:12.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Rolando G. Pe&#241;a</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Ramoncito S. Fernandez</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">156</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.35pt'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p style='text-align:justify;line-height:12.0pt' style="margin-top:0;margin-bottom:0">Danilo J. Mojica</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:14.45pt;text-align:right;
 line-height:12.0pt' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.5pt 0in 5.5pt;height:9.35pt'>
 <p align=right style='margin-right:7.1pt;text-align:right;
 line-height:12.0pt' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
</table></center></div>

<p style='border:none' style="margin-top:0;margin-bottom:0">_____________</p>

<p style='margin-left:13.7pt;text-indent:-13.7pt;line-height:
2.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>As at February 29, 2008,
under PLDT&#146;s ESOP, all of the options to purchase </i><i>shares of common stock of key officers and directors listed
in the table above had been exercised.  No options have been granted to
non-executive directors.  All outstanding options were exercisable at an
exercise price of Php814 per share and had an expiration date of December 10,
2009.  All outstanding options were fully vested as at December 10, 2004.</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>(2)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Includes PLDT common shares
that have been lodged with the Philippine Central Depository, Inc.</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>(3)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Includes 21,957 PLDT common
shares registered in the name of Hydee Management and Resources, Inc.  As
chairperson and president of Hydee Management &amp; Resources, Inc., Ms. Dee
may exercise voting rights in respect and may be considered to have beneficial
ownership of these shares.</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>(4)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Includes 386 shares of PLDT&#146;s
common stock registered in the name of Ateneo de Manila University and 2,690 shares
of PLDT&#146;s common stock held of record by PCD Nominee Corporation.  As president
of the Ateneo de Manila University, Rev. Fr. Nebres may exercise voting rights
in respect of these shares and may be considered to have beneficial ownership
of these shares</i>.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><i>(5)&nbsp;&nbsp;&nbsp;&nbsp;
</i><i>Includes 5,024,789 PLDT
common shares registered in the name of Social Security System and<b> </b>6,121,520<b>
</b>PLDT common shares held of record by PCD Nominee Corporation.  Ms. De la
Paz, as president and chief executive officer of the Social Security System,
may exercise voting rights in respect of these shares and may be considered to
have beneficial ownership of these shares.</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
aggregate number of common and preferred shares directly and indirectly owned
by directors, key officers and advisors listed above, as at February 29, 2008,
was 11,631,430 and 5,455 respectively, or 6.157103% and 0.002888% of PLDT&#146;s
outstanding common and preferred shares, respectively. </p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286171"><b>Board
of Directors &#150;&#150; Independent Directors</b></a></p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0">At least four of our directors,
namely, Rev. Fr. Bienvenido F. Nebres, S.J., Oscar S. Reyes, Pedro E. Roxas and
Alfred V. Ty, are independent directors who are not officers or employees of
PLDT or any of its subsidiaries, and who are free from any business or other
relationship with PLDT or any of its subsidiaries which could, or could
reasonably be perceived to, materially interfere with the exercise of
independent judgment in carrying out their responsibilities as directors.  The independence standards/criteria are provided in our
By-Laws and Manual on Corporate Governance pursuant to which, in general, a director
may not be deemed independent if such director is, or in the past five years
had been, employed in an executive capacity by us or any company controlling,
controlled by or under common control with us or he is, or within the past five
years had been, retained as a professional adviser by us or any of our related
companies, or he is not free from any business or other relationships with us
which could, or could reasonably be perceived, to materially interfere with his
exercise of independent judgment in carrying out his responsibilities as a
director.</p>

<p style='text-indent:.5in;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"><a name="_Toc170286172"></a><a
name="_Toc75779229"></a><a name="_Toc46082288"><b>Audit,
Governance and Nomination, Executive Compensation and Technology Strategy Committees</b></a></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">Our board of directors is
authorized under the by-laws to create committees, as it may deem necessary.
We currently have four board committees, namely, the audit, governance and
nomination, executive compensation and technology strategy committees, the
purpose of which is to assist our board of directors.  Each of these committees
has a board-approved written charter that provides for such committee&#146;s
composition, membership qualifications, functions and responsibilities, conduct
of meetings, and reporting procedure to the board of directors.</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Audit Committee</i></p>

<p style='text-indent:.5in;line-height:10.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
audit committee is composed of three members, all of whom are independent
directors, namely, Rev. Fr. Bienvenido F. Nebres, S.J., who chairs the
committee, Mr. Pedro E. Roxas and Mr. Oscar S. Reyes.  Mr. Tatsu Kono and Ms.
Corazon S. de la Paz-Bernardo, who are non-independent members of our board of
directors, and Mr. Roberto R. Romulo, an independent member of our board of directors,
serve as advisors to the audit committee.  All of the members of our audit
committee are financially literate and Ms. Corazon S. de la Paz-Bernardo, an
advisor to the audit committee, is an accounting and financial management
expert.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
provided for in the audit committee charter, the purposes of the audit
committee are to assist our board of directors in fulfilling its oversight responsibilities
for (i) PLDT&#146;s accounting and financial reporting principles and policies and
internal audit controls and procedures; (ii) the integrity of PLDT&#146;s financial
statements and the independent audit thereof; (iii) PLDT&#146;s compliance with
legal and regulatory requirements; and (iv) the performance of the internal
audit organization and the external auditors.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">To
carry its direct responsibility for the appointment, setting of compensation,
retention and removal of the external auditors, the audit committee has the
following duties and powers:</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to review and evaluate the
qualifications, performance and independence of the external auditors and the lead
partner of the external auditors;</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to select and appoint the external
auditors and to remove or replace the external auditors;</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to review and approve in
consultation with the head of the internal audit organization and the chief
financial advisor the fees charged by the external auditors for audit and
non-audit services;</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to pre-approve all audit and
non-audit services to be provided by and all fees to be paid to the external
auditors;</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to ensure that the external
auditors prepare and deliver annually the statement as to independence, to
discuss with the external auditors any relationships or services disclosed in
such statements that may impact the objectivity, independence or quality of
services of said external auditors and to take appropriate action in response
to such statement to satisfy itself of the external auditor&#146;s independence;</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to ensure that the external
auditors or the lead partner of the external auditors having the primary
responsibility for the audit of PLDT&#146;s accounts is rotated at least once every
five (5) years; </p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to advise the external auditors
that they are expected to provide the committee a timely analysis of
significant/critical financial reporting issues and practices; </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;
to obtain assurance from the
external auditors that the audit was conducted in a manner consistent with the
requirement under applicable rules; and</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
to resolve disagreements between
management and the external auditors regarding financial reporting. </p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
audit committee also has the authority to retain or obtain advice from special
counsel or other experts or consultants in the discharge of their
responsibilities without the need for board approval.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Governance and Nomination
Committee</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
governance and nomination committee is composed of five voting and two
non-voting members.  Three of the voting members are independent directors,
namely, Rev. Fr. Bienvenido F. Nebres, S.J., Mr. Alfred V. Ty and Mr. Oscar S.
Reyes.  Mr. Manuel V. Pangilinan, who serves as chairman, and Mr. Tatsu Kono
are the other voting members, and Mr. Victorico P. Vargas and Atty. Ma. Lourdes
C. Rausa-Chan are the non-voting members. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The principal functions and
responsibilities of our governance and nomination committee are:</p>

<p style='text-indent:.5in;line-height:6.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To develop and recommend to the board
for approval and oversee the implementation of corporate governance principles
and policies;</p>

<p style='text-indent:.5in;line-height:6.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To review and evaluate the
qualifications of the persons nominated for election as directors (including
independent directors) or other positions requiring board appointment;</p>

<p style='text-indent:.5in;line-height:6.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To identify the qualified nominees
and recommend that the board select and recommend such qualified nominees for
election as directors/independent directors at the annual meeting of
shareholders; and</p>

<p style='text-indent:.5in;line-height:6.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To assist our board in developing
and implementing the board&#146;s performance evaluation process.</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>Executive Compensation Committee </i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
executive compensation committee is composed of six members: five voting members
and one non-voting member.  Three of these voting members are independent
directors, namely, Mr. Pedro E. Roxas, Mr. Oscar S. Reyes and Mr. Alfred V. Ty,
two are non-independent directors, namely, Mr. Tatsu Kono and Mr. Albert F. del
Rosario, who serves as chairman, and one is a non-voting member, namely Mr.
Victorico P. Vargas.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The principal functions and responsibilities of our executive
compensation committee are:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To provide guidance to and assist
our board of directors in developing a compensation philosophy or policy
consistent with our culture, strategy and control environment;</p>

<p style='text-indent:.5in;line-height:6.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:0in' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To oversee the development and
administration of our compensation programs; and</p>

<p style='text-indent:.5in;line-height:6.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To review and approve corporate
goals and objectives relevant to the compensation of our chief executive officer,
evaluate the performance of our chief executive officer in light of those goals
and objectives, and set the compensation level of our chief executive officer based on such
evaluation.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Technology Strategy Committee </i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our technology strategy committee is composed of five
members, all of whom are voting members.  One of the members is an independent
director, namely, Mr. Oscar S. Reyes, and four are non-independent directors,
namely Mr. Manuel V. Pangilinan, who serves as chairman, Mr. Napoleon L.
Nazareno, Mr. Ray C. Espinosa and Mr. Tatsu Kono.</p>

<p style='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
principal functions and responsibilities of our technology strategy committee
are:</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To review and approve our
technology strategy and roadmap, and to review and advise our board on major technology
trends and strategies;</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To evaluate and advise our board
on actual and proposed technology investments and transactions;</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To review and submit to the board
recommendations regarding management&#146;s formulation and execution and overall
performance in achieving technology-related strategic goals and objectives; and
</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:1.0in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
To recommend to the board
approaches to acquiring and maintaining technology positions and maximizing our
access to relevant technologies, and to ensure optimized contribution of
technology to our business strategy and growth targets.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Effective
June 12, 2007, our board of directors dissolved the finance committee, since,
for several years thereto, all financial transactions which were within the
authority of the finance committee to review and/or approve were elevated
directly to our board.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286173"><b>Directors&#146;
and Officers&#146; Involvement in Certain Legal Proceedings</b></a></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
following is a description of the cases in which our chairman, Manuel V.
Pangilinan, our president and chief executive officer, Mr. Napoleon L. Nazareno
and our directors, Mr. Albert F. del Rosario, Ms. Ma. Lourdes C. Rausa-Chan and
Ms. Corazon S. de la Paz-Bernardo are respondents:</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.5in;text-align:left;
text-indent:-.25in' style="margin-top:0;margin-bottom:0">1.     Mr. Manuel V.
Pangilinan, in his capacity as chairman of the board of Metro Pacific
Corporation, a stockholder of Metro Tagaytay Land Company, Inc., or MTLCI, and
four other individuals were respondents in I.S. 04-A-1057 for alleged violation
of Article 315 (1)(b) (Estafa) of the Revised Penal Code filed by Mr. Vicente
A. Tuason in behalf of Universal Leisure Club, Inc., or ULCI, and Mr. Jose L.
Merin in behalf of Universal Rightfield Property Holdings, Inc., or URPHI. </p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.5in;text-align:left' style="margin-top:0;margin-bottom:0">In the complaint-affidavit, Messrs. Tuason and Merin
alleged that, in violation of the trust reposed by ULCI and certain contractual
commitments and representations, MTLCI, with the participation and/or
conformity of the respondents, misappropriated and converted Php139 million
that ULCI entrusted for the purpose of incorporating Golf Land Co., Inc.
(GLCI), a corporation to be wholly owned by MTLCI and to which a property of
MTLCI was to be transferred in exchange for shares in GLCI.  The said shares
were then supposed to be transferred to ULCI. </p>

<p align=left style='margin-left:.5in;text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.5in;text-align:left' style="margin-top:0;margin-bottom:0">Based on his counsel&#146;s advice, Mr. Pangilinan cannot
be held liable for violating Article 315 (1)(b) of the Revised Penal Code
because no document or other evidence has been presented to prove that Mr.
Pangilinan actually participated in the negotiation, preparation, approval,
execution and/or implementation of the agreement/contract upon which the claims
of the complainants are purportedly based, much less that Mr. Pangilinan, with
abuse of trust and confidence, misappropriated any amounts paid by ULCI to
MTLCI. </p>

<p align=left style='margin-left:.5in;text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.5in;text-align:left' style="margin-top:0;margin-bottom:0">On March 25, 2004, Mr. Pangilinan submitted his
counter-affidavit in I.S. No. 04-A-1057, including therein counter-charges
against Messrs Tuason and Merin for Perjury and Unjust Vexation. These
counter-charges were docketed as I.S. No. 04-C-5493-94. </p>

<p align=left style='margin-left:.5in;text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.5in;text-align:left' style="margin-top:0;margin-bottom:0">In a Joint Resolution dated June 7, 2004, the City
Prosecution Office of Makati dismissed all charges in the Estafa case against
Mr. Pangilinan as well as the counter-charges for Perjury and Unjust Vexation
against Messrs. Tuason and Merin. </p>

<p align=left style='margin-left:.5in;text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.5in;text-align:left' style="margin-top:0;margin-bottom:0">On November 16, 2004, ULCI, through Messrs. Tuason
and Merin, filed with the Philippine Department of Justice, or DOJ, their
respective Petitions for Review assailing the Resolution of the City
Prosecution Office of Makati.  Thereafter, the complainants and respondents
including Mr. Pangilinan filed, with the assistance of their respective
counsels, a Joint Motion to Dismiss (with prejudice) the charges and
counter-charges subject of the investigation before the DOJ. </p>

<p align=left style='margin-left:.5in;text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.5in;text-align:left' style="margin-top:0;margin-bottom:0">On March 20, 2006, Mr. Pangilinan, through counsel,
filed a Manifestation and Motion reiterating the parties&#146; prayer in their Joint
Motion to Dismiss that the cases be dismissed with prejudice. The DOJ still has
to resolve this Joint Motion to Dismiss. </p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.5in;text-align:left;
text-indent:-.25in' style="margin-top:0;margin-bottom:0">2.     Mr. Napoleon L.
Nazareno, in his capacity as president and chief executive officer of Smart,
is a respondent in the following cases: </p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.75in;text-align:left;
text-indent:-.25in' style="margin-top:0;margin-bottom:0">(a)   Criminal Case No.
133235-R submitted to the Municipal Trial Court in Cities Branch 6 Cebu City
and complaint docketed as I. S. No. 2005-57-B and filed with the Prosecutor&#146;s
Office of  Borongan, Eastern Samar, all for alleged violation of Section 301 in
relation to Section 213 of Presidential Decree 1096 (otherwise know as the
National Building Code of the Philippines).  The complaints alleged that Smart
built its cellsites without securing building permits and Smart&#146;s officers are
criminally liable therefor. </p>

<p align=left style='margin-left:.75in;text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.75in;text-align:left' style="margin-top:0;margin-bottom:0">In Criminal Case No. 133235-R, the Municipal Trial
Court in Cities Branch 6 Cebu City granted Mr. Nazareno&#146;s Motion to Dismiss and
ordered the dismissal of the case in an order dated July 13, 2007. </p>

<p align=left style='margin-left:.75in;text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.75in;text-align:left' style="margin-top:0;margin-bottom:0">The Prosecutor&#146;s Office of Borongan, Eastern Sama r, finding no probable cause to indict respondent Mr. Nazareno, dismissed the
complaint docketed as I.S. No. 2005-57-B in a Resolution dated July 4, 2007.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.75in;text-align:left;
text-indent:-.25in' style="margin-top:0;margin-bottom:0">(b)   Complaint docketed
as I.S. 07-3216-F and filed with the Cebu City Prosecutor&#146;s Office by Integrated
Distribution Network, Inc., or IDNI, for alleged Estafa and violation of
Republic Act No. 8484, or the &#147;Access Devices Regulation Act of 1988&#148;. IDNI
alleged that Smart, through its directors and officers, including Mr. Nazareno,
who are respondents in this complaint, perpetrated fraud by blocking the SIMs
of its sub-dealers. The dispute arose from contracts executed between Smart and
IDNI on roving billboards. The parties entered into a settlement agreement
allowing IDNI to purchase electronic load from Smart within a specific  period
and for a specified amount. It is Smart&#146;s position that IDNI&#146;s cause of action,
if any, is purely civil in nature.  </p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.75in;text-align:left' style="margin-top:0;margin-bottom:0">The Cebu City Prosecutor&#146;s Office issued a resolution
dated November 12, 2007, finding probable cause to indict the respondents for Estafa
and violation of the Access Devices Regulation Act of 1988.  On January 10,
2008, Mr. Nazareno filed a petition for review before the DOJ seeking the
reversal of that Resolution.  On January 16, 2008, the other respondents filed
their petition for review before the DOJ.  Both petitions are still pending
before the DOJ.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.5in;text-align:left;
text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.     Messrs. Napoleon L.
Nazareno and Albert F. del Rosario and other directors and officers of the
former PDCP Bank and some officers of the Bangko Sentral ng Pilipinas and
Development Bank of the Philippines, are respondents in a complaint docketed as
I.S. No. 2004-631 and filed by Chung Hing Wong/Unisteel/Unisco Metals, Inc.
with the DOJ, for alleged syndicated Estafa, Estafa through falsification of
documents, other deceits, malversation and robbery.  In the
complaint-affidavit, the complainant alleged that the officers and directors of
PDCP Bank deceived the complainant to secure a loan from PDCP Bank through
misrepresentation and with the sinister purpose of taking over the
complainant&#146;s corporation.  As stated in their respective counter-affidavits,
the charges against the PDCP directors including Messrs. Nazareno and del
Rosario are entirely without merit.  The complaint was referred to the Office
of the Ombudsman by the DOJ on October 30, 2007 on the ground that some of the
respondents are public officers and the alleged offenses were committed in the
performance of their official functions.  The complaint is still pending with
the Office of the Ombudsman.      </p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.5in;text-align:left;
text-indent:-.25in' style="margin-top:0;margin-bottom:0">4.     Mr. Albert F. del
Rosario and other former directors/officers, and Ms. Ma. Lourdes C. Rausa-Chan
and other former corporate secretaries/assistant corporate secretaries of
Steniel Cavite Packaging Corporation, Metro Paper and Packaging Products, Inc.,
AR Packaging Corporation and Starpack Philippines Corporation, are respondents
in a case docketed as OMB C-C-04-0363-H (CPL No. C-04-1248) in the Office of
the Ombudsman.  The complaint is for alleged:  (a) violation of Republic Act
No. 3019 (otherwise known as the Anti-Graft and Corrupt Practices Act); (b)
estafa thru falsification of public documents; (c) falsification of public
documents under Article 171, in relation to Article 172, of the Revised Penal
Code (RPC); (d) infidelity in the custody of public documents under Article 226
of the RPC; and (e) grave misconduct.  The complaint related to various tax
credit certificates (allegedly fraudulent, with spurious and fake supporting
documents) issued to Victory Textile Mills, Inc. (allegedly, a non-existent
corporation with fictitious incorporators and directors) and transferred to
several companies including the aforesaid companies.  The complaints against
Mr. del Rosario and Ms. Rausa-Chan involve the first two offenses only and in
their capacity as director and corporate secretary, respectively, of Metro
Paper and Packaging Products, Inc.  In the opinion of the legal counsels of Mr.
del Rosario and Ms. Rausa-Chan, there are no legal and factual bases for their
inclusion as respondents in this complaint.  Mr. del Rosario and Ms. Rausa-Chan
had no participation or involvement in the alleged anomalous acquisition and
transfer of the subject tax credit certificates.  The case is still pending
with the Office of the Ombudsman.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.5in;text-align:left;
text-indent:-.25in' style="margin-top:0;margin-bottom:0">5.     Ms. Corazon S. de
la Paz-Bernardo, in her capacity as president and chief executive officer of Social
Security System, or SSS, is a respondent in the following cases: </p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Complaints docketed as
OMB-C-C-04-281F, OMB-C-A-04-0276F and CPC No-C-04-850 and filed with the Office
of the Ombudsman for alleged inaction of SSS officials on the request for the
payment of liquidated damages relating to the SSS Baguio building. On September
22, 2006, the Office of the Ombudsman dismissed the case.  The complainant
appealed the administrative case to the Court of Appeals but the same was
dismissed.  The criminal aspect of the case is pending appeal with the Supreme
Court.</p>

<p style='margin-left:.75in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">b.     Complaint docketed as
OMB-C-C-06-0166C and filed with the Office of the Ombudsman for alleged
violation of Section 3 (h) of Republic Act 3019 and Section 7 (a) of Republic
Act 6713. The case is still pending with the Office of the Ombudsman.</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286174"></a><a name="_Toc75779230"></a><a
name="_Toc46082289"><b>&nbsp;</b></a></p>

<p style="margin-top:0;margin-bottom:0"><b>Employees and Labor
Relations</b><b> </b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><a
name="OLE_LINK49"></a><a name="OLE_LINK48">As at December 31, 2007, we had
30,255 employees within the PLDT Group, with 5,415, 8,080 and 16,760 employees in
our wireless, fixed line and ICT groups, respectively.  PLDT had 7,909
employees at the end of 2007, of which 40% were rank-and-file employees, 55%
were management/supervisory staff and 5% were executives.  This number
represents a decrease of 617, or approximately 7%, from the staff level as at
the end of 2006, mainly as a result of the ongoing manpower rightsizing
program.  From a peak of 20,312 at the end of 1994, PLDT&#146;s number of employees
has declined by 12,403, or 61%, by the end of 2007.  As at December 31, 2006,
we had 28,225 and 8,526 employees within the PLDT Group and PLDT, respectively.
</a>The increase in the number of employees within the PLDT Group from 2006 to
2007 primarily resulted from the acquisition of Springfield by SPi in April
2007. </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">PLDT
has three employee unions, the members of which in the aggregate represent 20%
of the employees of the PLDT Group.  We consider our relationship with our
rank-and-file employees&#146; union, our supervisors&#146; union and our sales
supervisors&#146; union to be good.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On November 16, 2006, PLDT and the <i>Manggagawa ng Komunikasyon sa
Pilipinas</i>, or MKP, our rank-and-file employees&#146; union, concluded and signed
a new three-year Collective Bargaining Agreement, or CBA, covering the period
from November 9, 2006 to November 8, 2009.  This CBA provides each member a
signing bonus equivalent to one month&#146;s salary (computed at the salary rate
prevailing prior to November 9, 2006) plus Php15,000; monthly salary increases
of Php2,150, Php2,200 and Php2,550 for the first, second and third year,
respectively; an increase in the yearly Christmas gift certificate from
Php7,000 to Php8,000; an increase in the amount of coverage under the group
life insurance plan from Php500,000 to Php650,000; an additional contribution
of Php1 million to the Educational Loan Fund; and Php35,000 funeral assistance
for the death of a dependent.  Other provisions of this CBA include increases
in the rice subsidy and professional fee for dependent&#146;s hospitalization.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0"><a
name="OLE_LINK24"></a><a name="OLE_LINK23">On March 8, 2005, PLDT and PLDT
Sales Supervisors&#146; Union, or PSSU, concluded and signed a three-year CBA
covering the period from January 1, 2005 to December 31, 2007.  As at the date
of the filing of this Annual Report on Form 20-F, negotiations are still
on-going for the signing of a new CBA covering the period January 1, 2008 to
December 31, 2010.</a></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On January 20, 2005, PLDT and <i>Gabay ng Unyon sa Telekomunikasyon ng
mga Superbisor</i>, or GUTS, our supervisors&#146; union, concluded and signed a
three-year CBA covering the period from January 1, 2005 to December 31, 2007.  As
at the date of the filing of this Annual Report on Form 20-F, negotiations are still
on-going for the signing of a new CBA covering the period from January 1, 2008
to December 31, 2010.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286175"></a><a
name="_Toc75779231"></a><a name="_Toc46082290"><b>Pension
and Retirement Benefits</b></a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Defined Benefit Plans</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We have defined benefit pension plans, covering
substantially all of our employees, except the employees of Smart.  The plans require
contributions to be made to a separate administrative fund.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">PLDT has a trusteed,
non-contributory defined benefit plan covering all permanent and regular
employees.  The benefit plan provides benefits upon normal retirement beginning
at age 65, early retirement beginning at age 50 or completion of at least 30
years of credited service, voluntary resignation with completion of at least 15
years of credited service, total and physical disability, death and involuntary
separation.  Benefits are based on the employee's final monthly basic salary
and length of service.</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The normal
retirement benefit is equal to a percentage of the final monthly basic salary
per year of credited service.  The percentage is 100% for those with less than
15 years of service at retirement and 125% for those with 15 years of service
at retirement.  Thereafter, the percentage increases by 5% for every additional
year of credited service up to a maximum of 200%.  Early retirement benefit is
equal to the accrued normal retirement benefit based on salary and service at
the date of early retirement.</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
the event the benefit plan's assets were insufficient to pay the required
retirement benefits, PLDT would be obligated to fund the amount of the
shortfall.  In addition, claims of PLDT's employees for retirement benefits
that have accrued would rank above the claims of all other creditors of PLDT,
in the event of PLDT's bankruptcy or liquidation.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Defined
Contribution Plan</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart
maintains a trustee-managed, tax-qualified, multi-employer plan covering
substantially all permanent and regular employees.  The plan has a defined
contribution format limiting Smart&#146;s obligation to specified contribution to
the plan.  It is being financed by the participating companies (Smart and its
subsidiary, I-Contacts) and contribution by employees is optional.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We
spent Php1,773 million for pension, retirement and similar benefits for our
employees for the year ended December 31, 2007.  In addition, Php603 million
was recognized in respect of 616 employees who availed of the enhanced
separation package under our MRP.  For more information about the benefit plan
including the total amount set aside to provide pension retirement or similar
benefits, see <i>Note 5 &#150; Income and Expenses</i> and <i>Note 23 &#150; Share-based
Payments and Employee Benefits</i> to the accompanying audited consolidated
financial statements in Item 18.</p>

<p style='line-height:7.0pt' 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_LINK10"></a><a
name="OLE_LINK11"></a><a name="OLE_LINK32"></a><a name="OLE_LINK31"></a><a
name="_Toc170286176"></a><a name="_Toc75779234"></a><a name="_Toc46082293"><b>Item 7.       Major Shareholders and Related Party
Transactions</b></a><b> </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='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table sets forth information regarding
ownership of shares of PLDT&#146;s common stock as at February 29, 2008, of all
shareholders known to us to beneficially own 5% or more of PLDT shares of
common stock.  All shares of PLDT's common stock have one vote per share.  </p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:468.9pt;
 border-collapse:collapse'>

 <tr style='height:36.85pt'>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:36.85pt'>
 <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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Title <br>
 of Class</b></p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:36.85pt'>
 <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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Name and Address of Record Owner and
 Relationship With Issuer</b></p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:36.85pt'>
 <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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Place of Incorporation</b></p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:36.85pt'>
 <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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Name of Beneficial <br>
 Owner and Relationship with Record Owner</b></p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:36.85pt'>
 <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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Number of</b></p>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Shares Held of Record</b></p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:36.85pt'>
 <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=';text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Percentage <br>
 of Class</b></p>
 </td>
 </tr>

 <tr>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Common</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Metro Pacific Resources, Inc.(1)</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">c/o Corporate Secretary</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">18th Floor, Liberty Center,</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">104 H. V. dela Costa St.</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Salcedo Village, Makati City</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>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Philippine</p>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Corporation</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>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Same as Record Owner</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>
 <p align=center style='margin-right:.1in;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,112,534</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>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">9.06</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>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Common</p>
 <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>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Philippine Telecommunications</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Investment Corporation(2)</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">12th Floor Ramon Cojuangco Bldg.</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Makati Avenue, Makati City</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>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Philippine</p>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Corporation</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>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Same as Record Owner</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>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">13,338,415(3)</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>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">7.06</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>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Common</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>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">NTT Communications Corporation(4)</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1-1-6 Uchisaiwai-cho</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">1-Chome, Chiyoda-ku</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Tokyo 100-8019, Japan</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>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Japanese</p>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Corporation</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>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">See Footnote 6 below</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>
 <p align=center style='margin-right:.1in;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,633,487</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>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">6.69</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>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Common</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>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">NTT DoCoMo, Inc.(5)</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">41st Floor, Sanno Park Tower</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2-11-1 Nagata-cho, Chiyoda-ku <br>
 Tokyo 100-6150, Japan</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>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Japanese</p>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Corporation</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>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">See Footnote 6 below</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>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">12,633,486(6)</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>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">6.69</p>
 </td>
 </tr>
 <tr style='height:49.9pt'>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:49.9pt'>
 <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">Common</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:49.9pt'>
 <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">Social Security System(7)</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">SSS Building</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">East Avenue, Quezon City</p>
 <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:49.9pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Philippine</p>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Corporation</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:49.9pt'>
 <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">Same as Record Owner</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:49.9pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">5,024,789(8)</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:49.9pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">2.66</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>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Common</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>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">PCD Nominee Corporation(9)</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">37/F Enterprise Building, Tower I</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Paseo De Roxas cor. Ayala Avenue,</p>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Makati City</p>
 <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>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Philippine Corporation</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>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">See Footnote 9 below</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>
 <p align=center style='margin-right:.1in;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">84,247,398</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>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">44.60</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>
 <p style="margin-top:0;margin-bottom:0">Common</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>
 <p style="margin-top:0;margin-bottom:0">J. P. Morgan Asset Holdings</p>
 <p style="margin-top:0;margin-bottom:0">(HK) Limited(10)</p>
 <p style="margin-top:0;margin-bottom:0">(various accounts)</p>
 <p style="margin-top:0;margin-bottom:0">20F Chater House, 8 Connaught Road</p>
 <p style="margin-top:0;margin-bottom:0">Central, Hongkong </p>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">HongKong</p>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Corporation</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p style="margin-top:0;margin-bottom:0">See Footnote 10 below</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>
 <p align=center style='margin-right:.1in;text-align:center' style="margin-top:0;margin-bottom:0">38,906,071</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>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">20.59</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>
 <p style="margin-top:0;margin-bottom:0">Common</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p style="margin-top:0;margin-bottom:0">Capital Research Global
 Investors(11)</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>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Delaware Corporation</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p style="margin-top:0;margin-bottom:0">See Footnote 11 below</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:.1in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p align=center style='margin-right:.1in;text-align:center' style="margin-top:0;margin-bottom:0">15,098,070</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>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">7.99</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:0in;line-height:8.0pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">__________</p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp;
</i><i>Based on a resolution of the
board of directors of Metro Pacific Resources, Inc., or MPRI, Mr. Manuel V.
Pangilinan has been appointed as proxy or duly authorized representative of
MPRI to represent and vote the PLDT shares of common stock of MPRI at the annual
meeting of stockholders of PLDT.</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:15.0pt;margin-bottom:.0001pt;text-indent:-13.7pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>(2)&nbsp;&nbsp;&nbsp;
</i><i>Pursuant to a resolution
adopted by the board of directors of Philippine Telecommunications Investment
Corporation, or PTIC, the president of PTIC, Mr. Manuel V. Pangilinan, has the
continuing authority to represent PTIC at any and all meetings of the
stockholders of a corporation in which PTIC owns of record or beneficially any
shares of stock or other voting security, and to sign and deliver, in favor of
any person he may deem fit, a proxy or other power of attorney, with full power
of delegation and substitution, authorizing his designated proxy or attorney-in-fact
to vote any and all shares of stock and other voting securities owned of record
or beneficially by PTIC at any and all meetings of the stockholders of the
corporation issuing such shares of stock or voting securities.</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>(3)&nbsp;&nbsp;&nbsp;
</i><i>In addition to the
13,338,415 shares owned on record by PTIC, PTIC beneficially owns 12,695,848 shares
of PLDT&#146;s common stock held of record by PCD Nominee Corporation, or PCD.  The
total shareholdings of PTIC is 26,034,263 shares of PLDT common stock representing
13.78% of the outstanding common stock of PLDT as at February 29, 2008.</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></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"><i>First Pacific Group beneficially owned 26.17% of our
common shares as at February 29, 2008 by virtue of PLDT common shareholdings by
intermediate holding companies, including PTIC and MPRI.</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:15.0pt;margin-bottom:.0001pt;text-indent:-13.7pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>(4)&nbsp;&nbsp;&nbsp;
</i><i>Based on publicly available
information, NTT Communications is a wholly-owned subsidiary of Nippon
Telegraph and Telephone Corporation, or NTT.  Based on a certification signed
by a duly authorized officer of NTT Communication, Mr. Jun Sawada is authorized
to execute for and on behalf of NTT Communications, endorsements, transfers,
and other matters relating to the shares of PLDT common stock held by NTT
Communications.</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>(5)&nbsp;&nbsp;&nbsp;
</i><i>Based on publicly available
information, NTT DoCoMo is a majority-owned and publicly traded subsidiary of
NTT.  Based on a certification signed by a duly authorized officer of NTT
DoCoMo, Mr. Toshinari Kunieda or Mr. Matsuo Yamamoto, is authorized to execute
for and on behalf of NTT DoCoMo, endorsements, transfers and other matters
relating to the PLDT shares of common stock held by NTT DoCoMo.</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>(6)&nbsp;&nbsp;&nbsp;
</i><i>NTT DoCoMo completed an
acquisition of 12,633,486 shares of PLDT common stock from NTT Communications
on March 14, 2006.  From March 23, 2007 to February 11, 2008, NTT DoCoMo
acquired through open market purchases a total of 14,134,588 additional shares
of PLDT common stock.  The total shareholdings of NTT DoCoMo is 26,768,074
shares of PLDT common stock (of which 12,633,486 are owned on record by NTT
DoCoMo, 8,533,253 are ADS and 5,601,335 are held of record by PCD) representing
14.17% of the outstanding common stock of PLDT as of February 29, 2008.</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:15.0pt;margin-bottom:.0001pt;text-indent:-13.7pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></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"><i>In reports filed by NTT Communications and NTT DoCoMo,
it is stated that because of NTT&#146;s ownership of all the outstanding capital
stock of NTT Communications and a majority of the common stock of NTT DoCoMo,
together with certain contractual arrangements including the Cooperation
Agreement dated January 31, 2006, NTT, NTT Communications and NTT DoCoMo may be
considered to constitute a &#147;group&#148; within the meaning of Section 13(d)(3) of
the U.S. Securities Exchange Act of 1934, as amended.  Therefore, each of them
may be deemed to have beneficial ownership of the 39,401,561 shares in
aggregate held by NTT Communications and NTT DoCoMo, representing 20.86% of the
outstanding common stock of PLDT as at February 29, 2008.</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:15.0pt;margin-bottom:.0001pt;text-indent:-13.7pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>(7)&nbsp;&nbsp;&nbsp;
</i><i>Pursuant to a resolution of
the Board of Directors of the Social Security System, or SSS, Ms. Corazon S. de
la Paz-Bernardo, as president and chief executive officer of the SSS, has been
authorized to represent and vote the PLDT shares of common stock of SSS in the
annual meeting of stockholders of PLDT.  </i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>(8)&nbsp;&nbsp;&nbsp;
</i><i>In addition to the 5,024,789
shares owned on record by the SSS, SSS also beneficially owned 5,750,492 shares
of PLDT common stock held of record by PCD.  The total beneficial shareholdings
of SSS is 10,775,281 shares of PLDT common stock representing 5.70% of the
outstanding common stock of PLDT as at February 29, 2008.</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>(9)&nbsp;&nbsp;&nbsp; </i><i>Registered owner of shares held by participants in the
Philippine Depository and Trust Co., or PDTC, a private company organized to
implement an automated book entry system of handling securities transactions in
the Philippines.  Under the PDTC procedures, when an issuer of a PDTC-eligible
issue will hold a stockholders&#146; meeting, the PDTC will execute a pro-forma
proxy in favor of its participants for the total number of shares in their
respective principal securities account as well as for the total number of
shares in their client securities account.  For the shares held in the
principal securities account, the participant concerned is appointed as proxy
with full voting rights and powers as registered owner of such shares.  For the
shares held in the client securities account, the participant concerned is
appointed as proxy, with the obligation to constitute a sub-proxy in favor of
its clients with full voting and other rights for the number of shares
beneficially owned by such clients.  Based on available information, none of
the owners of the shares of PLDT common stock registered under the name of PCD
Nominee Corporation, or PCD, owned more than 5% of PLDT&#146;s outstanding common
stock as at February 29, 2008, except The Hongkong and Shanghai Banking Corp.
Ltd.&#150;Clients, Capital Research Global Investors, and Citibank N.A., which own
approximately 19.37%, 7.99%, and 7.51%, respectively, of PLDT&#146;s outstanding
common stock as at such date.  The Company has no knowledge if any beneficial
owner of the shares under The Hongkong and Shanghai Banking Corp. Ltd.&#150;Clients,
Capital Research Global Investors, and Citibank accounts owned more than 5% of
PLDT&#146;s outstanding common stock as at such date.</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></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"><i>The PCD account also includes 12,695,848 shares
beneficially owned by the PTIC, 5,601,335 shares beneficially owned by NTT
DoCoMo, 5,750,492 shares beneficially owned by SSS and 12,461,130 shares
beneficially owned by Capital Research Global Investors.  </i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:15.0pt;margin-bottom:.0001pt;text-indent:-13.7pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>(10) </i><i>Holds shares as nominee of JPMorgan Chase Bank,
successor depositary under the Common Stock Deposit Agreement, dated <br>
October 14, 1994, as amended on February 10, 2003, between JPMorgan Chase Bank
and the holders of American Depositary Receipts, or ADRs, evidencing American
Depositary Shares, or ADSs, representing shares of common stock of the Company
(the &#147;Deposit Agreement&#148;).  Under the Deposit Agreement, if  the depositary
does not receive voting instructions from a holder of ADRs, such holder will be
deemed to have instructed the depositary to provide a discretionary proxy to a
person designated by PLDT for the purpose of exercising the voting rights pertaining
to the shares of common stock represented by such holder of ADRs, except that
no discretionary proxy will be given with respect to any matter as to which
substantial opposition exists or which materially and adversely affects the
rights of the holders of such ADRs.</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></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"><i>This account also includes 2,636,940 shares of PLDT
common stock underlying ADSs owned by Capital Research Global Investors,
8,533,253 shares of PLDT common stock underlying ADS owned by NTT DoCoMo.</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-16.7pt' style="margin-top:0;margin-bottom:0"><i>(11) </i><i>According to the Schedule 13G of Capital Research
Global Investors filed with the U.S. SEC on February 11, 2008, Capital Research
Global Investors, as an investment adviser, beneficially owned 15,098,070
shares of PLDT common stock, which includes 2,636,940 shares of PLDT common
stock underlying ADSs and 12,461,130 shares of PLDT common stock held of record
by PCD as at February 29, 2008.</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">As at February 29, 2008,
approximately 85.95% of the outstanding capital stock of PLDT was registered in
the names of Philippine persons.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286177"></a><a
name="_Toc75779235"></a><a name="_Toc46082295"><b>Related
Party Transactions</b></a></p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">For a discussion of our material related party
transactions, please see <i>Note 22 &#150; Related Party Transactions</i> to the
accompanying audited consolidated financial statements in Item 18.</p>

<p style='text-indent:.5in;line-height:8.0pt' 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">Except for the transactions described above, there
were no other material related party transactions during the last two years.</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">No
director or officer of PLDT or associate of any such director or officer was
indebted to PLDT at any time during the period from January 1, 2007 through the
date of filing of this annual report.</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"><a name="_Toc170286178"></a><a name="_Toc75779236"></a><a
name="_Toc46082296"><b>Item 8.       Financial
Information</b></a></p>

<p style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286179"></a><a name="_Toc75779237"></a><a
name="_Toc46082297"><b>Consolidated Statements
and Other Financial Information</b></a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Consolidated
financial statements are set forth under Item 18. &#147;Financial Statements.&#148;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286180"></a><a
name="_Toc75779238"></a><a name="_Toc46082298"><b>Legal
Proceedings</b></a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Except
as disclosed in the following paragraphs, neither PLDT nor any of its
subsidiaries is a party to, and none of their respective properties is subject
to, any pending legal proceedings that PLDT considers to be potentially
material to its and its subsidiaries&#146; business.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc164499767"><i>Quo
Warranto Action</i></a></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">On
June 4, 1990, the Solicitor General of the Philippines instituted legal
proceedings in the Regional Trial Court of Makati City seeking to &#147;oust
Philippine Long Distance Telephone Company (PLDT) from exercising its franchise
and/or to revoke, cancel and/or pre-terminate its franchise (Act No. 3436, as
amended) and/or to break up an alleged unlawful monopoly and give equal and
fair opportunity to other service corporations.&#148;  The Solicitor General cited
constitutional and statutory grounds for his action, including alleged foreign
investors&#146; participation in the control and management of PLDT on a basis
disproportionate to their holdings of PLDT&#146;s capital stock, violation of the
requirement that 60% of the capital of a public utility be owned by Philippine
citizens, inadequate and costly equipment and service, and blocking of the
right of other parties to provide telephone service in the Philippines.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
believe that these allegations are without merit and plan to defend ourselves
vigorously.  The Philippine Congress granted PLDT&#146;s amended franchise under
Republic Act No. 7082 notwithstanding the existence of these proceedings and
the opposition of the Solicitor General.  The case has been archived by virtue
of a court order dated January 20, 1999.  No further action has been taken and
the case continues to remain inactive.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Taxation</p>

<p style='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>National Internal Revenue Taxes</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT has filed various cases against the Commissioner
of the Bureau of Internal Revenue, or BIR, for refunds and/or tax credit of:</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:5.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
erroneously paid VAT, compensating taxes, advance sales taxes and
other internal revenue taxes on PLDT's importation of various equipment,
machinery and spare parts; and</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
line-height:5.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-indent:-.25in;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
erroneously paid withholding tax on separation pay of employees
who availed of the benefits under the Manpower Reduction Program. </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">In
the case of the claim for refund of erroneously paid value-added taxes,
compensating taxes, advance sales taxes and other internal revenue taxes on
PLDT&#146;s importation of various equipment, machinery and spare parts, the Supreme
Court, on December 15, 2005, rendered a decision partially granting the claim
for refund or tax credit certificates and ordering the Commissioner of Internal
Revenue, or CIR, to issue a Tax Credit Certificate or to refund to PLDT Php95
million representing erroneously collected advance sales tax and compensating
tax.  PLDT filed a Motion for Execution with the Second Division of the Court
of Tax Appeals which was opposed by the CIR.  The Second Division of Court of
Tax Appeals granted the Motion for Execution but the CIR appealed the said
decision to the Court of Tax Appeals <i>En Banc</i> where the case is currently
pending.</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
case of the claim for refund of erroneously paid withholding tax on separation
pay continues to be pending with the Supreme Court.</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;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>NTC supervision and regulation fees, or SRF</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Since
1994, following the rejection of PLDT's formal protest against the assessments
by the NTC of SRF, PLDT and the NTC had been involved in legal proceedings
before the Court of Appeals and the Supreme Court.&nbsp; The principal issue in
these proceedings was the basis for the computation of the SRF.&nbsp; PLDT&#146;s
position, which was upheld by the Court of Appeals, but, as set forth below,
rejected by the Supreme Court, was that the SRF should be computed based only
on the par value of the subscribed or paid up capital of PLDT, excluding stock
dividends, premium or capital in excess of par.&nbsp; </p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">As
at December 31, 2007, PLDT has paid, since 1994, a total amount of Php2,541
million in SRF of which Php2,251 million were paid under protest.&nbsp; The
Supreme Court, in a Resolution promulgated on December 4, 2007, upheld the NTC
assessment of SRF based on outstanding capital stock of PLDT, including stock
dividends.&nbsp; On April 3, 2008, PLDT complied with the Supreme Court Resolution
in paying the outstanding principal balance relating to stock dividends in the
amount of Php455 million to the NTC.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Local
business and franchise tax assessments</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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">As discussed below, we currently expect that going
forward, we will pay local franchise taxes on an annual basis based on the gross receipts received or collected for
services rendered within the jurisdiction of the respective taxing authority.
For this reason, we have made the appropriate provisions in our consolidated financial statements as at December
31, 2007.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">The Local Government Code of 1991, or Republic Act
(R.A.) 7160, which took effect on January 1, 1992, extended to local government
units, or LGUs, the power to tax businesses within their territorial
jurisdiction granted under Batas Pambansa 337, and withdrew tax exemptions
previously granted to franchise grantees under Section 12 of R.A. 7082.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">PLDT believes, based on the opinion of its legal
counsel, that the Public Telecommunications Policy Act, or R.A. 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. 7160, implicitly restored its local franchise and business
taxes exemption privilege under Section 12 of R.A. 7082, or the PLDT Franchise
pursuant to Section 23 thereof or the equality of treatment clause.  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. 7160.  However, on March 25,
2003, in a ruling relating to a tax assessment by the City of Davao, the
Supreme Court decided that PLDT was not exempt from the local franchise tax.</p>

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid;punctuation-wrap:
hanging' style="margin-top:0;margin-bottom:0">Although PLDT believes that it is not
liable to pay local franchise and business taxes, PLDT has entered into
compromise settlements with several LGUs, including the City of Makati, in order to maintain and preserve its good standing and relationship with these
LGUs.  Under these compromise settlements, which have mostly been approved by
the relevant courts, as at December 31, 2007, PLDT has paid a total amount of
Php694 million for local franchise tax covering prior periods up to the end of
2006.</p>

<p style='text-indent:.5in;page-break-after:avoid;punctuation-wrap:
hanging' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">PLDT had no longer contested assessments of LGUs for
franchise taxes based on gross receipts received or collected for services
within their respective territorial jurisdiction as at December 31, 2007.</p>

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">However, PLDT continues to contest the imposition of
local business taxes in addition to local franchise tax by the Cities of
Tuguegarao, Balanga and Caloocan in the amounts of Php1.9 million, Php0.2
million and Php6.2 million, respectively, for the years 1998 to 2003 for the
City of Tuguegarao, and for the years 2005 to 2007 for the Cities of Balanga
and Caloocan.  PLDT is likewise contesting the imposition of a business tax on
the transmission of messages by the Municipality of San Pedro in the amount of
Php0.3 million for the years 2005 to 2007.  In addition, PLDT is contesting the
imposition of franchise tax by the Province of Cagayan based on gross receipts
derived from outside its territorial jurisdiction in the amount of Php3 million
for the years 1999 to 2006.</p>

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid;punctuation-wrap:
hanging' style="margin-top:0;margin-bottom:0">While Smart had received and paid under
protest the local franchise tax assessment issued by the City of Makati
totaling approximately Php312 million, the Regional Trial Court, or RTC, of
Makati declared Smart exempt from payment of local franchise tax to the City of
Makati and on June 9, 2005, the Court of Appeals dismissed the appeal filed by
the City of Makati.</p>

<p style='text-indent:.5in;punctuation-wrap:hanging' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Also,
Smart had received LFT assessments issued by the City of Iloilo amounting to
approximately Php1 million.  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.  To date, Smart has not received any notice that the
said decision had been appealed by the City of Iloilo.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0"><a name="_DV_M2"></a><a
name="_DV_M3"></a><a name="_DV_M4"></a><a name="_DV_M5"></a><a name="_DV_M6"></a><a
name="_DV_M7"></a><a name="_DV_M8"></a><a name="_DV_M9"></a><a name="_DV_M10"></a><a
name="_DV_M11"></a><a name="_DV_M12"></a><a name="_DV_M13"></a><a name="_DV_M14"></a><a
name="_DV_M15"></a><a name="_DV_M16"></a><b>Dividend
Distribution Policy </b></p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Please
see Item 3. &#147;Key Information &#150; Dividends Declared&#148; for a description of our
dividend distribution policy, and please see Item 3. &#147;Key Information &#150;
Dividends Declared&#148; and <i>Note 7 &#150; Earnings Per Common Share</i> to the
accompanying audited consolidated financial statements in Item 18 for tables
that show dividends declared in 2007.</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286182"></a><a name="_Toc75779240"></a><a
name="_Toc46082300"><b>Item 9.       The Offer
and Listing</b></a></p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0"><a name="OLE_LINK5"></a><a name="OLE_LINK4"></a><a
name="_Toc170286183"></a><a name="_Toc75779241"></a><a name="_Toc46082301"><b>Common Capital Stock and American Depositary Shares (&#147;ADSs&#148;)</b></a></p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
common shares of PLDT are listed and traded on the PSE.  On October 19, 1994, an ADR facility was established, pursuant to which Citibank, N.A., as the
depositary, issued ADRs evidencing ADSs, with each ADS representing one PLDT
common share with a par value of Php5 per share.  Effective February 10, 2003, PLDT appointed JP Morgan Chase Bank as successor depositary of PLDT&#146;s ADR
facility.  The facility was established in accordance with a Common Stock
Deposit Agreement dated October 19, 1994, as amended on February 10, 2003 between the Depositary and the holders of the ADRs.  The ADSs have been listed and
are traded on the New York Stock Exchange, or NYSE, in the United States under the symbol &#147;PHI&#148;.  </p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Until
early 2007, the ADSs were also listed on the NYSE Arca.  However, PLDT
voluntarily delisted its ADSs from the NYSE Arca, effective February 12, 2007,
after determining that doing so is in the best interest of PLDT and its
stockholders.</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As at February 29, 2008, a total of 7.0 million shares of PLDT's common
capital stock were traded on the PSE.  During the same year, the volume of
trading was 7.7 million ADSs on the NYSE.</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">As at February 29, 2008, 10,807 stockholders were Philippine persons
and held approximately 35% of PLDT&#146;s common capital stock.  In addition, as at February
29, 2008, there was a total of approximately 43 million ADSs outstanding,
substantially all of which PLDT believes were held in the United States by 374 holders.</p>

<p style='text-indent:0in;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">High and low sales prices for PLDT&#146;s common shares on
the PSE and ADSs on the NYSE for each of the five most recent fiscal years,
each full quarterly period during the two most recent fiscal years, and each
month in the most recent six months were as follows: </p>

<p style='text-indent:0in;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:6.45in;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td  valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  colspan=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>Philippine Stock<br>
 Exchange</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">&nbsp;</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>New York</b><b> Stock <br>
 Exchange</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>High</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">&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 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Low</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">&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>High</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">&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 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Low</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-right:.7pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <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">First Quarter</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php3,175.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php2,520.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$76.72</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$61.49</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:31.5pt;margin-bottom:.0001pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">January</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,175.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,520.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">76.72</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">62.20</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:31.5pt;margin-bottom:.0001pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">February</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,050.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,830.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">75.67</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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">70.13</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:31.5pt;margin-bottom:.0001pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">March </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,905.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,600.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">71.65</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:.7pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">61.49</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,285.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,250.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">76.30</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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">45.25</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:2.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">First Quarter</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,820.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,250.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">56.62</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:.7pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">45.25</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:2.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Second Quarter</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,730.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,390.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">58.88</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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">50.05</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:2.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Third Quarter</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,950.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,270.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">65.16</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:.7pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48.00</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:2.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Fourth Quarter</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,285.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,900.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">76.30</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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">64.90</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">October </p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,285.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,900.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">72.50</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;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">64.90</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">November</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,105.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,925.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">73.39</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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">67.21</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">December</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,205.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,970.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">76.30</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:.7pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">69.62</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,610.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,675.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">51.90</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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">32.15</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">First Quarter</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,930.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,675.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">38.09</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:.7pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">32.20</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Second Quarter</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,295.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,700.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">43.99</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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">32.15</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Third Quarter</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,300.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,790.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">45.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:.7pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">34.57</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a
 name="_Hlk162060785">Fourth Quarter</a></p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,610.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,150.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">51.90</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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">42.56</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">2005</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,860.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,310.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">34.35</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">23.50</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">2004</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,505.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">810.00</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">27.03</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;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">14.38</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:.25in;margin-bottom:.0001pt;text-indent:-.25in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">2003</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">990.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">265.00</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">17.79</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4.85</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:0in;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"><a name="_Toc170286184"></a><a name="_Toc75779243"></a><a
name="_Toc46082303"><b>Item 10.    Additional
Information</b></a></p>

<p style='text-indent:0in;line-height:7.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286185"></a><a name="_Toc75779244"></a><a
name="_Toc46082304"><b>Articles of Incorporation
and By-Laws</b></a></p>

<p style='text-indent:0in;line-height:7.0pt;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">The
following summarizes certain provisions of PLDT's Articles of Incorporation and
By-Laws and applicable Philippine law.  This summary is qualified in its
entirety by reference to the Corporation Code of the Philippines (the
&#147;Corporation Code&#148;) and PLDT&#146;s Articles of Incorporation and By-Laws.
Information on where investors can obtain copies of the Articles of Association
and By-Laws is described under the heading &#147;Documents Available.&#148;</p>

<p style='text-indent:0in;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"><i>Purpose of PLDT</i></p>

<p style='text-indent:0in;line-height:7.0pt;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">PLDT's
Articles of Incorporation have been filed with the Philippine SEC and PLDT has
been issued Philippine SEC Reg. No. 55.  The Second Article of PLDT's Articles
of Incorporation provides that the purposes for which PLDT was formed are to
install, maintain, and operate any and all kinds of equipment for
communications; to install, maintain, operate or lease telephone lines and
systems, and to purchase, sell and deal in all kinds of products which may be
combined with the building, installing and operation of those systems and lines
and in general, to engage in any and all acts and business which may be
necessary or convenient, in the furtherance of such lines of communication and
business.</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Directors</i></p>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">PLDT's
Amended By-Laws provide that the board of directors shall consist of thirteen
members, each of whom must hold at least one share of stock of PLDT in his own
name and possess the minimum qualifications and have none of the
disqualifications provided in the By-Laws.  There are no provisions in PLDT&#146;s
Amended Articles of Incorporation or Amended By-Laws with respect to (a) a
director&#146;s power to vote on a proposal, arrangement or contract in which the
director is materially interested, (b) the directors&#146; power, in the absence of
an independent quorum, to vote compensation to themselves or any members of
their body, (c) borrowing powers exercisable by the directors and how such
borrowing powers can be varied, or (d) retirement or non-retirement of
directors under an age limit requirement.</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:auto' style="margin-top:0;margin-bottom:0">Description of PLDT Capital Stock</p>

<p style='text-indent:0in;line-height:7.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0"><i>Authorized Capital Stock</i></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 authorized capital stock of
PLDT is Php9,395 million divided into two classes consisting of 234 million
shares of Common Capital Stock with a par value of Php5 per share (the &#147;Common
Stock&#148;) and 822.5 million shares of serial Preferred Stock with a par value of
Php10 per share (the &#147;Preferred Stock&#148;).</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Common Stock</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">Set
out below is a statement of the dividend, voting, pre-emption and other rights
of the holders of Common Stock as set out in the Articles of Incorporation
and/or By-Laws of PLDT:</p>

<p style='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">(a)&nbsp;&nbsp;&nbsp;&nbsp;
After the requirements with
respect to preferential dividends on the serial Preferred Stock shall have been
met and after PLDT shall have complied with all the requirements, if any, with
respect to the setting aside of sums as purchase, retirement or sinking funds,
the holders of the Common Stock shall be entitled to receive such dividends as
may be declared from time to time by the board of directors out of funds
legally available therefor.</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(b)&nbsp;&nbsp;&nbsp;&nbsp;
After distribution in full of the
preferential amounts to be distributed to the holders of serial Preferred Stock
in the event of the voluntary or involuntary liquidation, dissolution, distribution
of assets or winding up of PLDT, the holders of Common Stock shall be entitled
to receive all the remaining assets of PLDT of whatever kind available for
distribution to stockholders ratably in proportion to the number of Common
Stock held by them, respectively.</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(c)&nbsp;&nbsp;&nbsp;&nbsp;
Except as may be otherwise
required by law, or by the Articles of Incorporation of PLDT, each holder of
Common Stock shall have one vote in respect of each share of such stock held by
him on all matters to be voted upon by the stockholders, and the holders of
Common Stock shall have the exclusive right to vote for the election of
directors and for all other purposes.  At every election of directors, a holder
of Common Stock is entitled to vote such shares of Common Stock held by him for
as many persons as there are directors to be elected, or to cumulate said
shares and give one candidate as many votes as the number of directors to be
elected multiplied by the number of his shares shall equal, or to distribute
such votes on the same principle among as many candidates as he shall think
fit.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In addition to the foregoing
rights, the Corporation Code provides for other stockholders&#146; rights generally,
which include:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(a)&nbsp;&nbsp;&nbsp;&nbsp;
Appraisal right or the right of a
dissenting stockholder to demand payment of the fair value of his shares of
stock in the following instances:  (a) in case any amendment to the articles of
incorporation has the effect of changing or restricting the rights of any
stockholders or class of shares, or of authorizing preferences in any respect
superior to those of outstanding shares of any class, or of extending or
shortening the term of corporate existence; (b) in case of sale, lease,
exchange, transfer, mortgage, pledge or other disposition of all or
substantially all of the corporate property and assets of the corporation; (c)
in case of merger or consolidation; and (d) in case of investment of funds of
the corporation in any other corporation or business or for any purpose other
than the primary purpose for which it was organized, except where the
investment by the corporation is reasonably necessary to accomplish its primary
purpose as stated in its articles of incorporation.</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(b)&nbsp;&nbsp;&nbsp;&nbsp;
The right to approve certain
corporate acts, such as (a) election of directors; (b) removal of directors; <br>
(c) extension or shortening of the corporate term; (d) increase or decrease of
capital stock, and incurring, creating or increasing bonded indebtedness; (e)
sale or other disposition of all or substantially all of the corporate assets;
(f) investment of corporate funds in any other corporation or business or for
any purpose other than the primary purpose for which it was organized except
where the investment is reasonably necessary to accomplish its primary purpose
as stated in the corporation&#146;s articles of incorporation; (g) declaration of
stock dividend; (h) entering into a management contract with another
corporation; (i) plan of merger or consolidation; and (j) voluntary dissolution
of the corporation by shortening the corporate term.</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(c)&nbsp;&nbsp;&nbsp;&nbsp;
The right to inspect at reasonable
hours on business days the records of all business transactions of the
corporation and the minutes of any meeting; however, the stockholders&#146; right to
inspect corporate records and books is not an absolute right so that the
corporation may deny said right on the basis of impropriety of the purpose or
motive of the stockholder.</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(d)&nbsp;&nbsp;&nbsp;&nbsp;
The right to be furnished the most
recent financial statements of the corporation, within ten (10) days from
receipt by the corporation of a written request from a stockholder.  The same
right exists at the annual meeting of stockholders at which the board of directors
must present to the stockholders a financial report of the operations of the
corporation for the preceding year which shall include financial statements
duly signed and certified by an independent certified public accountant.</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Restrictions
on Foreign Ownership</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Constitution of the Republic of the Philippines (Section 11, Article XII)
states that no franchise, certificate, or any other form of authorization for
the operation of a public utility shall be granted except to citizens of the
Philippines or to corporations or associations organized under the laws of the
Philippines at least 60% of whose capital is owned by such citizens.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">While
the Articles of Incorporation and By-Laws of PLDT do not contain any specific
restriction on the sale, assignment or transfer of shares that would violate
the aforecited ownership requirement, the Articles of Incorporation of PLDT
provide that the board of directors shall have full power and authority to
authorize (whether by adoption of amendments to the By-Laws of PLDT or of
resolutions, the promulgation of rules or regulations or otherwise) the taking
by said corporation of all such actions as the board of directors may deem
necessary or appropriate to ensure compliance by said corporation with any
applicable provision of the Constitution of the Republic of the Philippines or
any other applicable law, treaty, rule or regulation relating to the ownership
of securities of said corporation by citizens of the Philippines, aliens or
other persons or group of persons.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Meetings</i></p>

<p style='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">The
Corporation Code requires corporations to hold an annual meeting of
stockholders and to send notice thereof to stockholders.  Under PLDT&#146;s By-Laws,
the annual meeting of stockholders shall be held at the principal office of the
corporation, or at such other place designated by the board of directors in the
city or municipality where the principal office of the corporation is located,
on the second Tuesday in June of each year.  In the annual meeting, the board
of directors shall be elected and such other business may be transacted as
shall come before the meeting.  At least fifteen (15) business days written or
printed notice of the date, time and place of holding every annual
stockholders' meeting shall be given by the Secretary or by an Assistant
Secretary by personal delivery or by mail to each stockholder at his or her
last known place of residence or business.  Special meetings of stockholders may
be called at any time by the President or three (3) of the Directors or by a
number of stockholders representing two-thirds (2/3) of the subscribed capital
stock.  Notice in writing of such meeting stating the date, time or place
thereof, shall be given to each stockholder by the Secretary or Assistant
Secretary or, in case of his absence, inability, refusal or neglect to act,
then by the President, Directors or stockholders calling said meeting, by
personal delivery or by mail to each stockholder at his or her last known place
of residence, at least fifteen (15) business days before the date fixed for the
meeting.</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
By-Laws of PLDT provide that each share of common stock which has voting rights
on any matter under consideration may be represented at any meeting of
stockholders by the holder thereof or by his attorney duly authorized by proxy
in writing on forms prescribed by the board of directors which shall be
furnished to a stockholder upon his request.  Unless otherwise provided in the
proxy, it shall be valid only for the meeting in respect of which such proxy
was issued.  Proxies must be filed with the Secretary, Assistant Secretary or
transfer agent of PLDT at least two (2) days before the day of the meeting.
Any proxy filed with the Secretary, Assistant Secretary or transfer agent of
the corporation may be revoked by the stockholder concerned either in an
instrument in writing duly presented to the Secretary, Assistant Secretary or
transfer agent of the corporation at least two (2) days before the day of the
meeting or by his personal presence at the meeting.  The decision of the
Secretary on the validity of proxies shall be final and binding until and
unless set aside by a court of competent jurisdiction.  As provided in the
Corporation Code, unless otherwise provided in the proxy, it shall be valid
only for the meeting for which it is intended and no proxy shall be valid and
effective for a period longer than five (5) years at any one time.</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
By-Laws of PLDT also provide that at any meeting of the stockholders, persons
representing, in person or by proxy, a majority of the shares issued and
outstanding and entitled to vote at said meeting shall constitute a quorum for
the transaction of any business, except as otherwise provided by law, and except
that a lesser number may adjourn the meeting.</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Issues
of Shares</i></p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The board
of directors of PLDT has the power to authorize the issue and sale of
authorized but unissued shares of Common Stock of said corporation for such
consideration as it shall determine, provided that such consideration shall not
be less than the par value of such shares and, provided further, that such
issue and sale is not otherwise prohibited under applicable laws.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
the Securities Regulation Code of the Philippines (R.A. No. 8799), or SRC, no
securities except of a class exempt under the provisions thereof or unless sold
in any transaction exempt under any of the provisions thereof, shall be sold or
offered for sale or distribution to the public unless such securities shall
have been registered and permitted to be sold pursuant to the SRC.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Transfer of Shares</i></p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The shares of Common Stock may be transferred by
delivery of certificate(s) endorsed by the shareholder named in the certificate
or his duly authorized attorney or representative.  No transfer, however, shall
be valid, except as between the parties, until the transfer is recorded in the
stock and transfer books of PLDT maintained by <br>
 Hong Kong and Shanghai Banking Corporation, the stock transfer agent of PLDT
for its Common Stock.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Philippine
law does not require transfers of Common Stock to be effected on the PSE, but
any off-exchange transfers will subject the transferor to a capital gains tax
that may be significantly greater than the stock transfer tax applicable to transfers
effected on the PSE.  All transfers of shares of Common Stock on the PSE must
be effected through a licensed broker in the Philippines.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Share
Certificates</i></p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Certificates
representing fully paid shares of Common Stock are issued in such denominations
as stockholders may request, except that certificates will not be issued for
any fractional part of a share or any undivided interest in any share.</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Dividends</i></p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
the Corporation Code, the board of directors may declare dividends on the
Common Stock out of the unrestricted retained earnings which may be payable in
cash, in property or in stock to all stockholders on the basis of outstanding
shares held by them.  The declaration of stock dividends requires the approval
of the stockholders of PLDT representing not less than two-thirds of the
outstanding capital stock of PLDT.  If a stock dividend would require an
increase in the authorized capital stock, Philippine SEC approval would be
required.  Common Stock issued as stock dividends should be registered with and
licensed by the Philippine SEC and listed on the PSE.</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The Corporation Code requires a
Philippine corporation with retained earnings in excess of 100% of its paid-in
capital to declare and distribute as dividends the amount of such surplus.  Notwithstanding
this general requirement, a Philippine corporation may retain all or any
portion of such surplus in the following cases:  (i) when justified by definite
corporate expansion projects or programs approved by the board of directors;
(ii) when the corporation is prohibited under any loan agreement with any
financial institution or creditor, whether local or foreign, from declaring
dividends without its/his consent, and such consent has not yet been secured;
or (iii) when it can be clearly shown that such retention is necessary under
special circumstances relevant to the corporation, such as when there is a need
for special reserve for probable contingencies.</p>

<p style='text-indent:.5in;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">PLDT
has entered into certain loan and credit agreements, which restrict the
declaration and payment of dividends by PLDT.  In particular, under certain loan
agreements, PLDT may not declare or pay dividends on any of its capital stock
without the prior written consent of the lenders (i) if PLDT is in default in
the payment of any amounts due and payable under such loan agreement or after
the occurrence and during the continuance of any other event of default or
potential event of default under such agreements, (ii) if after giving effect
to such action the current ratio would be less than 0.90:1 or (iii) in an
amount greater than PLDT&#146;s net income after taxes during the fiscal year to
which such payment or distribution relates.  On March 1, 2005, PLDT declared a cash dividend at Php14 per common
share to holders of record as at March 31, 2005, which was paid on May 12, 2005, constituting the first cash dividend declaration to common shareholders
since March 2001.  This was followed by cash dividend declarations made by PLDT
on its common stock on May 5, 2005, at Php21 per common share to holders of
record as at June 3, 2005, which was paid on July 14, 2005; on November 8,
2005, at Php21 per common share to holders of record as at November 28, 2005,
which was paid on December 28, 2005; on February 27, 2006, at Php28 per common
share to holders of record as at March 20, 2006, which was paid on April 20,
2006; and on August 8, 2006, at Php50 per
common share to holders of record as at August 21, 2006, which was paid on
September 21, 2006.</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"><i>Preferred Stock</i></p>

<p style='text-indent:.5in;line-height:10.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Preferred Stock may be issued
from time to time in one or more series as the board of directors may
determine.  The board of directors is authorized to establish and designate the
title and number of shares of each series and to fix the terms thereof,
including dividend rate, redemption and sinking fund provisions, conversion
rights and the amount to be received upon liquidation, provided that the
amounts payable upon redemption or liquidation may not be more than 110%, nor
less than 100%, of par value, plus in each such case accrued and unpaid dividends.
Except as otherwise provided by law, the holders of Preferred Stock are not
entitled to vote for the election of directors or for any other purpose;
provided, however, that PLDT may not change the rights of the holders of any
series of Preferred Stock in any manner prejudicial to the holders thereof
without the affirmative vote of the holders of a majority of the shares of such
series.  No such approval is needed to increase the number of shares of
Preferred Stock (up to the number from time to time authorized by the Articles)
or to authorize classes of shares ranking on a parity with the Preferred Stock.</p>

<p style='text-indent:.5in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Issued and Outstanding Preferred Stock</i></p>

<p style='text-indent:.5in;line-height:10.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The series of Preferred Stock and the number of shares
issued and outstanding under each series as at <br>
February 29, 2008 are as follows:<b> </b></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:95.3%;border-collapse:collapse'>
 <tr style='height:.2in'>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:.2in'>
 <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:
 6.0pt;margin-left:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>Series</u></b></p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt;
 height:.2in'>
 <p align=center style='margin-top:6.0pt;margin-right:0in;
 margin-bottom:6.0pt;margin-left:0in;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>No. of Shares</u></b></p>
 </td>
 </tr>
 <tr style='height:15.3pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt;height:15.3pt'>
 <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
 margin-left:0in;line-height:normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Series A to EE 10% Cumulative
 Convertible</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt;height:15.3pt'>
 <p align=right style='margin-top:6.0pt;margin-right:.5in;
 margin-bottom:6.0pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">405,661,417</p>
 </td>
 </tr>
 <tr style='height:.2in'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:.2in'>
 <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:
 6.0pt;margin-left:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Series
 IV Cumulative Non-Convertible Redeemable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:.2in'>
 <p align=right style='margin-top:6.0pt;margin-right:.5in;
 margin-bottom:6.0pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,000,000</p>
 </td>
 </tr>
 <tr style='height:15.75pt'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:15.75pt'>
 <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;
 margin-left:0in;line-height:normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Series V Cumulative
 Convertible Redeemable</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:15.75pt'>
 <p align=right style='margin-top:6.0pt;margin-right:.5in;
 margin-bottom:6.0pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">27,303</p>
 </td>
 </tr>
 <tr style='height:16.2pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:16.2pt'>
 <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:
 6.0pt;margin-left:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Series
 VI Cumulative Convertible Redeemable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:16.2pt'>
 <p align=right style='margin-top:6.0pt;margin-right:.5in;
 margin-bottom:6.0pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">513,957</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Series A to EE 10% Cumulative Convertible Preferred Stock are entitled to
receive cumulative dividends at the rate of 10% per annum; redeemable at the
option of PLDT, at par value plus accrued dividends, five years after the year
of issuance; convertible to shares of Common Stock a year after the year of
share issuance, at a price equivalent to 10% below the average market price of
the Common Stock at the PSE over a period of 30 consecutive trading days before
the conversion date; and entitled to be paid an amount equal to the par value
of the shares plus accrued and unpaid dividends thereon to the date fixed for
such payment in the event of a voluntary or involuntary liquidation,
dissolution, distribution of assets or winding up of the affairs of the
corporation.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Series IV Cumulative Non-Convertible Redeemable Preferred Stock are entitled to
receive cumulative dividends at the rate of 13.5% per annum based on the
paid-up subscription price.  It is redeemable at the option of PLDT one year at
any time after subscription at an amount equal to the par value of such shares
so redeemed or if such shares are not yet fully paid, the actual amount paid,
plus accrued and unpaid dividends thereon; and in the event of a voluntary or
involuntary liquidation, dissolution or winding up of affairs of PLDT, shall be
entitled to be paid an amount equal to the par value of such shares or if such
shares are not yet fully paid, the actual amount paid, plus an amount equal to
the dividends accrued thereon to the date fixed for payment.  The outstanding
shares of Series IV Cumulative Non-Convertible Redeemable Preferred Stock have
not been fully paid.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Shares
of Series V and VI Convertible Preferred Stock are entitled to receive annual
dividends of Php18.70 per share and US$0.397 per share, respectively.  Each
share of Series V and VI Convertible Preferred Stock is convertible at any time
at the option of the holder into one share of PLDT Common Stock.  In the event
of any voluntary or involuntary liquidation, dissolution or winding up of PLDT,
the holders of the Series V and VI Convertible Preferred Stock are entitled to
receive out of the assets of PLDT available for distribution to the
shareholders of PLDT, before any distribution of assets is made to holders of
shares of Common Stock or any other shares of stock of PLDT ranking as to such
distribution junior to the Series V and VI Convertible Preferred Stock,
liquidating distributions in the amount of Php11 per share plus accrued and
unpaid dividends.  Shares of Series V and VI Convertible Preferred Stock which are outstanding on June 4, 2008, the seventh
anniversary of the issue date thereof,
will be mandatorily converted into shares of PLDT Common Stock on the date
immediately following such anniversary date at a conversion rate of one share
of Common Stock for each share of Series V or VI Convertible Preferred Stock
subject to adjustments in certain events.  Under a put option exercisable for
30 days following the mandatory conversion, holders of shares of PLDT Common
Stock received on mandatory conversion will be able to require PLDT to purchase
such shares of PLDT Common Stock for Php1,700 per share and US$36.132 per
share, for Series V and VI Convertible Preferred Stock, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
at December 31, 2007, 2,690,650 shares of Series V Convertible Preferred Stock,
4,614,801 shares of Series VI Convertible Preferred Stock and 3,842,000 shares
of Series VII Convertible Preferred Stock had been voluntarily converted to
PLDT common shares and 30,790 shares of Series V and 680,303 shares of Series
VI Convertible Preferred Stocks remained outstanding.  As at December 31, 2007, the aggregate value of the put options based on
outstanding shares as at such date was Php1,070 million assuming all of the
outstanding shares of Series V and VI Convertible Preferred Stocks were
mandatorily converted on June 5, 2008 and all the common shares issued upon
conversion were put to PLDT at that time in accordance with the terms of the
put options.  The market value of the underlying common shares was Php2,256
million, based on the market price of PLDT common shares of Php3,175 per share
as at December 31, 2007.  On March 4,
2008, PLDT issued a notice to the effect that all of the shares of Series V and
Series VI Convertible Preferred Stock originally issued on June 4, 2001, and
outstanding as at June 4, 2008, will be mandatorily converted on June 5, 2008,
to PLDT common shares. As a result of such mandatory conversion, holders of
common shares received on mandatory conversion of the Series V and Series VI
Convertible Preferred Shares will be able to exercise the above described put
options in accordance with their terms.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Change in Control</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Article
V, Section 1 of PLDT's Amended By-Laws may have the effect of preventing a change
in control of PLDT.  This section provides that any person who is engaged in
any business that competes with or is antagonistic to that of PLDT or its
subsidiaries is ineligible for nomination or election to the board of directors.</p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc75779245"></a><a
name="_Toc46082305">&nbsp;</a></p>

<p align=left style='text-align:left;text-indent:.5in;page-break-after:
auto' style="margin-top:0;margin-bottom:0">Under the Cooperation Agreement, each of NTT
Communications, NTT DoCoMo and the FP Parties agreed that to the extent
permissible under applicable laws and regulations of the Philippines and other
jurisdictions, subject to certain conditions, it shall cast its vote as a PLDT
shareholder in support of any resolution proposed by the PLDT board of
directors for the purpose of safeguarding PLDT from any Hostile Transferee. See
Item 7. &#147;Major Shareholders and Related Party Transactions &#151; Related Party
Transactions.</p>

<p style='page-break-after:auto' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286186"><b>Material Contracts</b></a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We have entered into the following contract within the
two years preceding the date of this annual report which is or may be material:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The Cooperation Agreement, dated January 31, 2006, entered into by and among PLDT, First Pacific, Metro Pacific Corporation,
Metro Asia Link Holdings, Inc., Metro Pacific Resources, Inc., Larouge B.V.,
Metro Pacific Assets Holdings, Inc., NTT Communications and NTT DoCoMo. </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286187"></a><a name="_Toc75779246"></a><a
name="_Toc46082306"><b>Exchange Controls and
Other Limitations Affecting Securities Holders</b></a></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
Circular No. 1389 dated November 10, 1993, as amended by Circular No. 224 dated
 January 26, 2000, of the BSP, foreign investments in the shares of stock of
Philippine companies listed in the PSE may be registered either with the BSP or
with an investor&#146;s designated custodian bank.  The foreign investments in
listed shares of stock, which are duly registered with the BSP or with a
custodian bank duly designated by the foreign investor, are entitled to full
and immediate capital repatriation and dividend and interest remittance privileges.
Without the need to obtain prior BSP approval, commercial banks are authorized
to sell and to remit the equivalent foreign exchange (at the exchange rate
prevailing at the time of actual remittance) representing sales and divestment
proceeds or dividends of a duly registered foreign equity investment upon
presentation of a BSP Registration Document (&#147;BSRD&#148;) together with other
supporting documents.  The BSRD is issued by the BSP or the custodian bank upon
registration of the foreign investment and serves as the authority to
repatriate such divestment and sales proceeds or remittance of cash dividends.
Effective April 3, 2000, only pre-numbered BSRD forms, printed on BSP security
paper may be used and issued as proof of registration of foreign investments in
accordance with existing BSP rules.  The remitting commercial bank must submit
to the BSP a statement of remittance together with the supporting documents
within two banking days from date of actual remittance.  Foreign investments
not duly registered with the BSP or with the investor's designated custodian
bank are not entitled to repatriation and remittance privileges through the
banking system except capital repatriation or dividend remittance of direct
foreign equity investments made prior to March 15, 1973 when BSP registration was not yet required.  The BSP should be notified of the transfer of
sale of foreign investments in equity or securities already registered with the
BSP, in order that the registration of the foreign investment may be transferred
in the name of the transferee or purchaser.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Cash
dividends on PLDT&#146;s stock are paid in Philippine peso, except dividends on the
Series VI Convertible Preferred Stock, which are paid in U.S. dollars.  PLDT&#146;s
Transfer Agent and Dividend Paying Agent for its Series VI Convertible
Preferred Stock, Hong Kong and Shanghai Banking Corporation, converts and
remits in U.S. dollars, at the prevailing exchange rate, cash dividends due to
holders of the Series VI Convertible Preferred Stock.  PLDT&#146;s Transfer Agent
for its common stock, The Hong Kong and Shanghai Banking Corporation, which
also acts as dividend paying agent, converts and remits in U.S. dollars, at the
prevailing exchange rate, cash dividends due all common shareholders residing
outside the Philippines.  Under the above-mentioned regulations, PLDT has been
able to remit the cash dividends due to shareholders residing outside the Philippines.  As at December 31, 2007, approximately 86% of PLDT&#146;s outstanding shares of
common and preferred stock were held by Philippine persons.  For certain
restrictions on the declaration and payment of dividends by PLDT, see <i>Note 17
&#150;Equity</i> and <i>Note 18 &#150; Interest-bearing Financial Liabilities</i> to the
accompanying audited consolidated financial statements in Item 18.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Principal
of and interest on PLDT&#146;s 10.5% Notes due 2009, 11.375% Notes due 2012 and
8.35% Notes due 2017 are payable in U.S. dollars which may be purchased from
the local banking system either pursuant to the registration of such Notes with
the BSP or otherwise pursuant to specific BSP approval of such payment.  Such
principal and interest may also be paid utilizing PLDT's own dollar resources
without necessity of BSP approval.  The BSP, with the approval of the President
of the Philippines, may, however, restrict the availability of foreign exchange
during an exchange crisis, when an exchange crisis is imminent, or in times of
national emergency.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286188"></a><a name="_Toc75779247"></a><a
name="_Toc46082307"><b>Taxation</b></a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
following is a description of the material Philippine and United States federal
income tax consequences to United States Holders (as defined below) of owning
shares of Common Stock and ADSs.  It applies to you only if you hold your Common
Stock or ADSs as capital assets for tax purposes.  This section does not apply
to you if you are a member of a special class of holders subject to special
rules, including a dealer in securities, a trader in securities that elects to
use a mark-to-market method of accounting for securities holdings, a tax-exempt
organization, a life insurance company, a person liable for alternative minimum
tax, a person that actually or constructively owns 10% or more of PLDT&#146;s voting
stock, a person that holds Common Stock or ADSs as part of a straddle or a
hedging or conversion transaction, or a United States Holder (as defined below)
whose functional currency is not the U.S. dollar.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">This
section is based on the United States Internal Revenue Code of 1986, as amended
(the &#147;U.S. Tax Code&#148;), its legislative history, existing and proposed
regulations, published rulings and court decisions, and the laws of the
Philippines including the Philippine National Internal Revenue Code of 1997
(the &#147;Philippine Tax Code&#148;) all as currently in effect, as well as on the
Convention Between the Philippines and the United States (the &#147;Philippines-United
States Tax Treaty&#148;).  These laws are subject to change, possibly on a
retroactive basis.  In addition, this section is based in part on the
representations of the Depositary and the assumption that each obligation in
the Deposit Agreement and any related agreement will be performed according to
its terms.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;text-indent:.5in;
line-height:normal' style="margin-top:0;margin-bottom:0">You are a
United States Holder if you are a beneficial owner of Common Stock or ADSs and
you are a citizen or resident of the United States, a domestic corporation, an
estate whose income is subject to United States federal income tax regardless
of its source, or a trust if a United States court can exercise primary
supervision over the trust&#146;s administration and one or more United States
persons are authorized to control all substantial decisions of the trust.</p>

<p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0">This discussion addresses only United States federal income taxation and Philippine income taxation, estate and donor&#146;s
taxation, stock transaction taxation and documentary stamp taxes.</p>

<p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Philippine Taxation</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Taxes on Exchange of ADSs for Common Stock </i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Philippine capital gains or stock transaction taxes
and documentary stamp taxes may be payable upon the transfer of shares of
Common Stock to a holder of ADRs to a holder of GDRs.  See &#147;&#150;&#150; Capital Gains
Tax and Stock Transaction Tax&#148; and &#147;&#150;&#150; Documentary Stamp Taxes.&#148;</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>Taxation of Dividends</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">Under the Philippine Tax Code, dividends paid by a
Philippine corporation to citizens of the Philippines and resident aliens in
the Philippines are subject to a final withholding tax of 10% while those paid
to non-resident aliens engaged in trade or business within the Philippines are
subject to a final withholding tax of 20%.  Dividends paid to non-resident
aliens not engaged in trade or business within the Philippines are subject to a
final withholding tax of 25%.  Dividends paid by a Philippine corporation to
other Philippine corporations or to resident non-Philippine corporations are
not subject to tax.  Dividends paid to non-resident non-Philippine corporations
not engaged in a trade or business in the Philippines by Philippine
corporations shall be subject to a final withholding tax of 15%, subject to the
condition that the country in which the non-resident non-Philippine corporation
is domiciled either (i) allows a credit against the tax due from the non-resident
non-Philippine corporation taxes deemed to have been paid in the Philippines
equivalent to 20% effective November 1, 2005 (which represents the difference
between the regular income tax on non-resident non-Philippine corporations of
35% effective November 1, 2005 and the 15% tax on dividends) (this condition is
not satisfied in the case of corporations domiciled in the United States if
such corporations own less than 10% of the voting stock of PLDT) or (ii)
imposes no income taxes on dividends received by such non-resident
non-Philippine corporations from Philippine corporations (this condition is not
satisfied in the case of corporations domiciled in the United States).  If
neither of the foregoing conditions are met, the dividends paid to the non-resident
non-Philippine corporation shall be subject to the regular income tax rate of
35% effective November 1, 2005.  Under rulings issued by Philippine tax
authorities, Hong Kong is viewed as falling within clause (ii) and, thus,
companies that are organized in Hong Kong that are not engaged in trade or
business in the Philippines may be entitled to the benefit of the 15% rate.
Such rulings, however, were based upon the laws of Hong Kong as in effect at
the time such rulings were issued, and any subsequent changes in the relevant
laws of Hong Kong may affect the validity of such rulings.  PLDT reserves the
right to change the rate at which it makes payments of withholding tax whenever
it deems it appropriate under applicable law.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">If
the holder of Common Stock is a non-resident foreign partnership, which is
treated as a corporation for Philippine tax purposes, dividends on the Common
Stock should be subject to a final withholding tax of 35% effective November 1,
2005.  Cede &amp; Co., the partnership nominee of Depository Trust Company
(&#147;DTC&#148;), should qualify as a non-resident foreign partnership that would be
treated as a corporation for Philippine tax purposes.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
certain circumstances where the holder holds Common Stock, a tax treaty rate
may be applicable with respect to the Philippine withholding tax.  For
instance, holders under such circumstances and as to which the
Philippines-United States Tax Treaty would be applicable would be eligible for
a treaty rate of 25% (or 20% in certain instances).  The 20% treaty rate is
generally not applicable in the case of non-resident non-Philippine
corporations domiciled in the United States which own less than 10% of the
voting stock of PLDT.  Holders are required, however, to establish to the
Philippine taxing authorities their eligibility for such treaty rate.
Philippine tax authorities have prescribed, through an administrative issuance,
procedures for availment of tax treaty relief.  PLDT intends to pay withholding
tax at the reduced treaty rate in respect of shares the registered holder of
which is Cede &amp; Co., on the basis that Cede &amp; Co. is a resident of the United States for purposes of the Philippines-United States Tax Treaty.  PLDT reserves the
right to change the rate at which it makes payments of withholding tax whenever
it deems it appropriate under applicable law.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Capital
Gains Tax and Stock Transaction Tax</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
Philippine Tax Code provides that gain from the sale of shares of stock in a
Philippine corporation shall be treated as derived entirely from sources within
the Philippines, regardless of where the shares are sold.  Subject to
applicable tax treaty rates, the rate of tax on such gain, where the share is
not disposed of through the Philippine Stock Exchange, is a final tax of 5% for
gains not exceeding Php100,000 and a final tax of 10% for gains in excess of
that amount.  The rate is the same for both non-resident individuals and
non-resident non-Philippine corporations.  While this tax is not collected
through withholding, the Philippine Tax Code prohibits a transfer from being
recorded on the books of the corporation unless the Philippine Commissioner of
Internal Revenue certifies that the tax has been paid or certain other
conditions are met.  </p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The sale of shares which are
listed in and sold through the PSE are subject to the stock transaction tax
imposed at the rate of 1/2 of 1% of the gross selling price.  This tax is
required to be collected and paid to the government by the selling stockbroker
on behalf of his client.  Sales of shares other than through a Philippine stock
exchange will be subject to Philippine capital gains tax in the manner
described above.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
the Philippines-United States Tax Treaty, gains derived by a United States
resident from the sale of shares of stock of a Philippine corporation will not
be subject to capital gains tax where the share is not disposed of through the
Philippine Stock Exchange, unless the shares are those of a corporation over
50% of the assets of which consist of real property interests located in the
Philippines.&nbsp; PLDT does not believe that it currently is such a
corporation.</p>

<p style='text-indent:.5in;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"><i>Documentary Stamp Taxes</i></p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">The
 Philippines imposes a documentary stamp tax upon transfers of shares of stock
issued by a Philippine corporation at a rate of Php0.75 on each Php200, or
fractional part thereof, of the par value of the shares.  The documentary stamp
tax is collectible wherever the document is made, signed, issued, accepted or
transferred, when the obligation or right arises from Philippine sources or the
property is situated in the Philippines.  Effective March 20, 2004, the
documentary stamp tax rate upon transfer of shares of stock issued by a
Philippine corporation was decreased from Php1.50 to Php0.75 on each Php200, or
fractional part thereof, of the par value of the shares.  However, the
imposition of documentary stamp tax on secondary transfer of shares of stock of
a Philippine Corporation which is listed and traded through the facilities of
the Philippine Stock Exchange is suspended for a period of five years counted
from the same effective date.   </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Estate
and Donor&#146;s Taxes</i></p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Shares
of stock issued by a corporation organized or constituted in accordance with
Philippine law are deemed to have a Philippine situs and their transfer by way
of succession or donation is subject to Philippine estate and gift taxes.  The
transfer of shares of stock by a deceased individual to his heirs by way of
succession, whether such an individual was a citizen of the Philippines or an
alien, regardless of residence, will be subject to Philippine estate tax at
progressive rates ranging from 5% to 20% if the net estate is over Php200,000.
Individual and corporate shareholders, whether or not citizens or residents of
the Philippines, who transfer the Equity Securities by way of gift or donation
will be liable for Philippine donor&#146;s tax on such transfers at progressive
rates ranging from 2% to 15%, if the net gifts made during the calendar year
exceed Php100,000.  The rate of tax with respect to net gifts made to a
stranger, who is not a brother, sister, spouse, ancestor, lineal descendant or
relative by consanguinity in the collateral line within the fourth degree of
relationship of the donor, is a flat rate of 30%.  Estate and gift taxes will
not be collected in respect of intangible personal property such as the Equity
Securities:</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
if the deceased at the time of
death, or the donor at the time of donation, was a citizen and resident of a
foreign country which at the time of his death or donation did not impose a
transfer tax of any character in respect of intangible personal property of
citizens of the Philippines not residing in that foreign country, or</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
if the laws of the foreign country
of which the deceased or the donor was a citizen and resident at the time of
his death or donation allow a similar exemption from transfer or death taxes of
every character or description in respect of intangible personal property owned
by citizens of the Philippines not residing in that foreign country.</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Shares
of stock of a deceased shareholder or shares that have been donated may not be
transferred on the books of the corporation without a certificate from the
Philippine Commissioner of Internal Revenue that the applicable estate or
donor's taxes have been paid.  In the case of ADRs, however, there is no corresponding
requirement, unless a transfer of the ADRs would also entail a change in the
registration of the underlying shares.</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>United States</i><i> Federal Taxation </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">In
general, taking into account the earlier assumptions that each obligation of
the Deposit Agreement and any related agreement will be performed according to
its terms, for United States federal income tax purposes, if you hold ADRs
evidencing ADSs, you will be treated as the owner of the shares represented by
those ADRs.  Exchanges of shares of Common Stock for ADRs, and ADRs for shares
of Common Stock, generally will not be subject to United States federal income
tax.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Taxation of Dividends</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Under
the United States federal income tax laws, and subject to the passive foreign
investment company, or PFIC, rules discussed below, if you are a United States
Holder, the gross amount of any dividend we pay out of our current or
accumulated earnings and profits (as determined for United States federal
income tax purposes) is subject to United States federal income taxation.  If
you are a non-corporate United States Holder, dividends paid to you in taxable
years beginning before January 1, 2011 that constitute qualified dividend
income will be taxable to you at a maximum tax rate of 15% provided that, in
the case of Common Stock or ADSs, you hold the Common Stock or ADSs for more
than 60 days during the 121-day period beginning 60 days before the ex-dividend
date.  Dividends we pay with respect to the Common Stock or ADSs generally will
be qualified dividend income.</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">You
must include any Philippine tax withheld from the dividend payment in this
gross amount even though you do not in fact receive it.  The dividend is
taxable to you when you, in the case of Common Stock, or the Depositary, in the
case of ADSs, receive the dividend, actually or constructively.  The dividend
will not be eligible for the dividends-received deduction generally allowed to United States corporations in respect of dividends received from other United States corporations.
The amount of the dividend distribution that you must include in your income as
a United States Holder will be the U.S. dollar value of the Philippine peso
payments made, determined at the spot Philippine peso/U.S. dollar rate on the
date the dividend distribution is includible in your income, regardless of
whether the payment is in fact converted into U.S. dollars.  Generally, any
gain or loss resulting from currency exchange fluctuations during the period
from the date you include the dividend payment in income to the date you
convert the payment into U.S. dollars will be treated as ordinary income or
loss and will not be eligible for the special tax rate applicable to qualified
dividend income.  The gain or loss generally will be income or loss from
sources within the United States for foreign tax credit limitation purposes.
Distributions in excess of current and accumulated earnings and profits, as
determined for United States federal income tax purposes, will be treated as a
non-taxable return of capital to the extent of your basis in the Common Stock
or ADSs and thereafter as capital gain. </p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Subject
to certain limitations, the Philippine tax withheld in accordance with the Philippines-United States Tax Treaty and paid over to the Philippines will be creditable or deductible
against your United States federal income tax liability.  Special rules apply
in determining the foreign tax credit limitation with respect to dividends that
are subject to the maximum 15% tax rate.</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Dividends
will be income from sources outside the United States.  Dividends paid in taxable years beginning before
January 1, 2007 generally will be &#147;passive&#148; or &#147;financial services&#148; income, and
dividends paid in taxable years beginning after December 31, 2006 will,
depending on your circumstances, be &#147;passive&#148; or &#147;general&#148; income which, in
either case, is treated separately from other types of income for purposes of
computing the foreign tax credit allowable to you.</p>

<p style='text-indent:.5in;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>Sale</i><i> or Other Disposition of Equity Securities</i></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">Subject to the PFIC rules
discussed below, a United States Holder will recognize capital gain or loss
upon the sale of <a name="OLE_LINK26"></a><a name="OLE_LINK25">Common Stock or
ADSs </a>in an amount equal to the difference between such United States
Holder's basis in the Common Stock or ADSs and the amount realized upon the
sale.  Such gain or loss generally will be long-term capital gain or loss if,
at the time of sale, exchange or retirement, the Common Stock or ADSs have been
held for more than one year.  Capital gain of a non-corporate U.S. holder that is recognized in taxable years beginning before January 1, 2011 is generally taxed
at a maximum rate of 15% where the property is held for more than one year.
Generally, any such gain or loss will be treated as realized income or loss
from sources within the United States for foreign tax credit limitation
purposes.  United States Holders may not be eligible to credit against their United States federal income tax liability amounts paid in respect of the Philippine stock
transaction tax.  See &#147;&#151; Philippine Taxation &#151; Capital Gains Tax and Stock
Transaction Tax.&#148;</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
U.S. Tax Code does not authorize a comparable credit for foreign gift or
donor's taxes such as those imposed by the Philippines.  See &#147;&#151; Philippine
Taxation &#151; Estate and Donor&#146;s Taxes.&#148;</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Passive
Foreign Investment Company Rules</i></p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
believe that the Common Stock or ADSs should not be treated as stock of a PFIC
for United States federal income tax purposes, but this conclusion is a factual
determination that is made annually and thus may be subject to change.  If we
were to be treated as a PFIC, unless the Common Stock or ADSs are &#147;marketable
stock&#148; and a United States Holder elects to be taxed annually on a
mark-to-market basis with respect to the Common Stock or ADSs, gain realized on
the sale or other disposition of your Common Stock or ADSs would in general not
be treated as capital gain.  Instead, if you are a United States Holder, you
would be treated as if you had realized such gain and certain &quot;excess
distributions&quot; ratably over your holding period for the Common Stock or
ADSs and would be taxed at the highest tax rate in effect for each such year to
which the gain was allocated, together with an interest charge in respect of
the tax attributable to each such year.  In addition, dividends that you
receive from us will not be eligible for the special tax rates applicable to
qualified dividend income if we are a PFIC either in the taxable year of the
distribution or the preceding taxable year, but instead will be taxable at
rates applicable to ordinary income.</p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286189"></a><a name="_Toc75779248"></a><a
name="_Toc46082310"><b>Documents on Display</b></a></p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
are subject to the informational requirements of the Exchange Act, and file
reports and other information with the Commission, as required by this Act.
Reports and other information filed by us with the Commission may be inspected
and copied at the Commission&#146;s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549.  The public may obtain information on the operation of the
Commission&#146;s Public Reference Room by calling the Commission in the United States at 1-800-SEC-0330.  The Commission also maintains a website that contains
reports, proxy statements and other information regarding registrants that file
electronically with the Commission.  Copies of these materials may be obtained
by mail from the public reference section of the Commission, 100 F Street, N.E., Washington, D.C. 20549, at prescribed rates.  These reports and other
information may also be inspected at the offices of the New York Stock
Exchange, 20 Broad Street, New York, New York 10005, on which the American
Depositary Shares representing our Common Stock are listed.</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"><a name="_Toc170286190"></a><a name="_Toc75779249"></a><a
name="_Toc46082311"><b>Item 11.    Quantitative
and Qualitative Disclosures about Market Risks</b></a></p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The main risks arising from our financial instruments
are liquidity risk, foreign currency exchange risk, interest rate risk and
credit risk.  The importance of managing those risks has significantly
increased in light of the considerable change and volatility in both the
Philippine and international financial markets.  Our board of directors reviews
and approves policies for managing each of these risks.  Our policies for
managing these risks are summarized below.  We also monitor the market price
risk arising from all financial instruments.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.25in' style="margin-top:0;margin-bottom:0"><i>Liquidity Risk</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">We need to manage our liquidity profile to be able to
finance our operations and capital expenditures, service our maturing debts and
meet our other financial obligations.  To cover our financing requirements, we
use internally generated funds and proceeds from debt and equity issues and
sales of certain assets. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">As
part of our liquidity risk management program, we regularly evaluate our
projected and actual cash flows, including our loan maturity profiles, and
continuously assess conditions in the financial markets for opportunities to
pursue fund-raising initiatives.  These activities may include bank loans,
export credit agency-guaranteed facilities, debt capital and equity market
issues.</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">Any excess funds are primarily invested in short-dated
and principal-protected bank products that provide flexibility of withdrawing
the funds anytime.  We also allocate a portion of our cash in longer tenor
investments such as fixed income securities issued or guaranteed by the
Republic of the Philippines, or ROP, and Philippine banks and corporates,
managed funds and other structured products linked to the ROP.  We regularly
evaluate available financial products and monitor market conditions for
opportunities to enhance yields at acceptable risk levels.  Our investments are
also subject to certain restrictions contained in our debt covenants.  Our funding
arrangements are designed to keep an appropriate balance between equity and
debt and to provide financing flexibility while enhancing our businesses. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">A summary of the maturity profile of our financial
liabilities as at December 31, 2007 and 2006 based on contractual undiscounted
payments is set out in <i>Note 24 &#150; Contractual Obligations and Commercial
Commitments </i>to the accompanying audited consolidated financial statements
in Item 18.</p>

<p style='margin-left:0in;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>Foreign
Currency Exchange Risk</i></p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">The revaluation of our foreign currency-denominated
financial assets and liabilities as a result of the appreciation or
depreciation of the Philippine peso is recognized as foreign exchange gains or
losses as at the balance sheet date.  The extent of foreign exchange gains or
losses is largely dependent on the amount of foreign currency debt and hedges
we carry.  While a certain percentage of
our revenues are either linked to or denominated in U.S. dollars, most 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.  As such, a strengthening or weakening of
the Philippine peso against the U.S. dollar will decrease or increase in
Philippine peso terms both the principal amount of our unhedged foreign
currency-denominated debts and the related interest expense of our foreign
currency-denominated capital expenditures and operating expenses as well as our
U.S. dollar-linked and U.S. dollar-denominated revenues.  In addition, many of
our financial ratios and other financial tests are affected by the movements in
the Philippine peso to U.S. dollar exchange rate.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">To
manage our foreign exchange risks and to stabilize our cash flows to improve
investment and cash flow planning, we enter into forward foreign exchange
contracts, currency swap contracts, currency option contracts 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.  We use forward
foreign exchange purchase contracts, currency swap contracts and foreign
currency option contracts to manage the foreign currency risks associated with
our foreign currency-denominated loans.  We also enter into forward foreign
exchange sale contracts to manage foreign currency risks associated with our
U.S. dollar-linked and U.S. dollar-denominated revenues.  In order to manage
hedge costs of these contracts, we utilize structures that include
credit-linkage with PLDT as the reference entity, a combination of foreign
currency option contracts, and fixed to floating coupon only swap agreements.
We accounted for these instruments as transactions not designated as hedges,
wherein changes in the fair value are recognized directly as income or expense
for the year.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table shows our consolidated foreign
currency-denominated monetary financial assets and liabilities and their
Philippine peso equivalents as at December 31, 2007 and 2006:</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:91.18%;border-collapse:collapse'>

 <tr style='height:9.35pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style='margin-top:3.0pt;text-indent:.5in;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:9.35pt'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=3 valign=top 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;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p style='text-indent:.5in;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:9.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>U.S. Dollar</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Php</b>(1)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p 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:9.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>U.S. Dollar</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Php</b>(2)</p>
 </td>
 </tr>
 <tr style='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-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=7 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>

 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial Asset</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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='height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative financial assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$1</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php59</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$9</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php434</p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:9.35pt'>
 <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='height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Current Financial Assets</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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='height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,853</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">155</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,578</p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,324</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">92</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,521</p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Trade and other receivables</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">227</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,400</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">277</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,589</p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative financial assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">23</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">967</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">47</p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total current financial assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 399</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,544</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 525</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">25,735</p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='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:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$400</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php16,603</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$534</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php26,169</p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:9.35pt'>
 <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='height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial Liabilities</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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='height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest-bearing financial liabilities - net of current portion</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$1,126</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php46,612</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$1,239</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php60,756</p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative financial liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">187</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,741</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">140</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,872</p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total noncurrent financial liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,313</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">54,353</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,379</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">67,628</p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:9.35pt'>
 <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='height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Current Financial Liabilities</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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='height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accounts payable</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">160</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,614</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">268</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,115</p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accrued expenses and other current liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">95</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,958</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">74</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,605</p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative financial liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <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=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">108</p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Current portion of interest-bearing financial liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">187</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,748</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">328</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,104</p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total current financial liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 448</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18,562</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <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>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">32,932</p>
 </td>
 </tr>
 <tr style='height:9.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total Financial Liabilities</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$1,761</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php72,915</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$2,051</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <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=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:9.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php100,560</p>
 </td>
 </tr>
</table></center></div>

<p 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)</i><i>     The
exchange rate used to translate the U.S. dollar amounts into Philippine peso
was Php</i><i>41.411 to US$1.00, the
peso-dollar rate as quoted through the Philippine Dealing System as at December
31, 2007.</i></p>

<p style='margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><i>(2)        </i><i>The exchange rate used to translate the U.S. dollar amounts into
Philippine peso was Php49.045 to US$1.00, the peso-dollar rate as quoted
through Philippine Dealing System as at December 31, 2006.</i></p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">As at April 3, 2008, the peso-dollar
exchange rate was Php41.552 to US$1.00.  Using this exchange rate, our
consolidated net foreign currency-denominated financial liabilities as at
December 31, 2007 would have increased by Php192 million.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">As at December 31, 2007, approximately 88% of our total consolidated debts was denominated in
U.S. dollars.  Consolidated foreign currency-denominated debt was reduced to
Php52,540 million as at December 31, 2007 from Php76,646 million as at December
31, 2007.  PLDT&#146;s outstanding long-term principal only currency swap contracts
and foreign currency option contracts amounted to US$550 million and US$136
million, respectively, as at December 31, 2007.  Consequently, the unhedged
portion of consolidated debts amounts was approximately 45% (or 36%, net of our
U.S. dollar cash balances) as at December 31, 2007. </p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">For the year ended December 31, 2007, approximately
34% of our consolidated revenues were either denominated in U.S. dollars or
were linked to the U.S. dollars.  In this respect, the recent appreciation of
the Philippine peso against the U.S. dollar reduced our revenues, and
consequently, our cash flow from operations in Philippine peso terms.</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">The Philippine peso had appreciated by 16% against the
U.S. dollar to Php41.411 to US$1.00 as at December 31, 2007, from Php49.045 to
US$1.00 as at December 31, 2006.  Likewise, as at December 31, 2006, the peso
had appreciated by 8% to Php49.045 to US$1.00 from Php53.062 to US$1.00 as at
December 31, 2005.  As a result of the foreign exchange movements as well as
the amount of our outstanding foreign currency debts and derivatives, we
recognized foreign exchange gains of Php7,990 million and Php4,823 million in
2007 and 2006, respectively.</p>

<p style='margin-left:0in;text-indent:.5in;line-height:
8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Management conducted a survey among our banks to
determine the outlook of the peso-dollar exchange rate until our next reporting
date of March 31, 2008 and 2007.  Our outlook is that the peso-dollar exchange
rate may weaken/strengthen by 2% as compared to the exchange rate of Php41.411
to US$1.00 as of year-end 2007 and Php49.045 to US$1.00 as of year-end 2006.
At December 31, 2007 and 2006, if the peso-dollar exchange rate had
weakened/strengthened by 2%, with all other variables held constant, profit
after tax would have been higher/lower by Php1,088 million and Php270 million
for the year 2007 and 2006, respectively, and our stockholders&#146; equity as at
December 31, 2007 and 2006 would have been higher/lower by Php1,194 million and
Php284 million, respectively, mainly as a result of foreign exchange gains,
losses on translation of U.S. dollar-denominated net assets/liabilities and
marked-to-market valuation of derivative transactions.</p>

<p style='margin-left:0in;text-indent:.5in;line-height:
8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Interest Rate Risk</i></p>

<p style='margin-left:0in;text-indent:.5in;line-height:
8.0pt' 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 exposure to the risk of changes in
market interest rates relates primarily to our long-term debt obligations and
short-term borrowings with floating interest rates. </p>

<p style='margin-left:0in;text-indent:.5in;line-height:
8.0pt' 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 policy is to manage interest cost
through a mix of fixed and variable rate debts. We evaluate the fixed to
floating ratio of our loans in line with movements of relevant interest rates
in the financial markets. Based on our assessment, new financing will be priced
either on a fixed or floating rate basis. 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 risk associated with our liabilities and not for
trading purposes.</p>

<p style='margin-left:0in;text-indent:.5in;line-height:
8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">The following tables set out the carrying
amount, by maturity, of our financial instruments that are exposed to interest
rate risk for the years ended December 31, 2007 and 2006.  Financial
instruments that are not subject to interest rate risk were not included in the
table.</p>

<p style='margin-left:0in;text-indent:.5in;line-height:
8.0pt' 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>Year
Ended December 31, 2007<a name="OLE_LINK85"></a><a name="OLE_LINK84"></a></b></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:103.52%;;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;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-top: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">&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;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' 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;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=right style='text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 border-top: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"><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;page-break-after:
 avoid' 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;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=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=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"><b>Debt</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   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"><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;page-break-after:
 avoid' 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;page-break-after:
 avoid' 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;page-break-after:
 avoid' 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;
 page-break-after:avoid' 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;
 page-break-after:avoid' 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;
 page-break-after:avoid' 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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>In 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;page-break-after:
 avoid' 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;page-break-after:
 avoid' 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=right style='text-align:right;page-break-after:
 avoid' 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;page-break-after:
 avoid' 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=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>In 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;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><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;page-break-after:
 avoid' 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;page-break-after:
 avoid' 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;
 page-break-after:avoid' 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;
 page-break-after:avoid' 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;
 page-break-after:avoid' 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;
 page-break-after:avoid' 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;page-break-after:
 avoid' 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=right style='text-align:right;page-break-after:
 avoid' 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=right style='text-align:right;page-break-after:
 avoid' 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;
 page-break-after:avoid' 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;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=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><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;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=top 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=top 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=' 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=' 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=' 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   colspan=5 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>(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;page-break-after:
 avoid' 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;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=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=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"><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   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"><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;page-break-after:
 avoid' 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;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=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=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"><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   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   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>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;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=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=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   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   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$ Notes</p>
 </td>
 <td   colspan=5 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">136</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">250</p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">300</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"> 686</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">28,403</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">387</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">28,016</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">770</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">31,900</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' 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;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">10.500%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.4pt;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:.4pt;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:.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8.350%</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-top:0in;;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$ Fixed Loans</p>
 </td>
 <td   colspan=5 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</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">46</p>
 </td>
 <td   valign=bottom 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">23</p>
 </td>
 <td   valign=bottom 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">9</p>
 </td>
 <td   valign=bottom 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">280</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"> 413</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">17,123</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">4,016</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">13,107</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">342</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">14,078</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;page-break-after:
 avoid' 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4.49% to<br>
 8.9%</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">4.49% to 6.0%</p>
 </td>
 <td   valign=bottom 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">4.515% to 4.7%</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">4.700%</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">2.250%</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">&#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:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Philippine Peso</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">&#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">93</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">38</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"> 131</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">5,420</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</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">5,387</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">125</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">5,168</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=5 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7.090%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">6.500%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6.500%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5.625% to 6.50%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='margin-right:.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6.125% to 6.50%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;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 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt 0in 5.4pt 0in 5.4pt !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   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>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;page-break-after:avoid' style="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=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   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=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='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">U.S. Dollar</p>
 </td>
 <td   colspan=5 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">98</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">92</p>
 </td>
 <td   valign=bottom 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">58</p>
 </td>
 <td   valign=bottom 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">28</p>
 </td>
 <td   valign=bottom 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=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"> 276</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">11,445</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</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">11,417</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">276</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">11,445</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;page-break-after:
 avoid' 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">0.05% to 2.75% over US$ LIBOR</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">0.05% to 2.75% over US$ LIBOR</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">0.05% to 2.5% over US$ LIBOR</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">0.75% to 0.815% over
 US$ LIBOR</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' style="margin-top:0;margin-bottom:0">Philippine Peso</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">14</p>
 </td>
 <td   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=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">13</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">13</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='text-align:right' 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' style="margin-top:0;margin-bottom:0">2,228</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">8</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">2,220</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">54</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">2,227</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">MART1 + 0.75% to 5.70%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">MART1 + 0.75% to 5.70%</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">MART1 + 0.75% to 5.70%</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">MART1 + 0.75% </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=' 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>1,560</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>64,619</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>4,472</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>60,147</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>1,567</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>64,819</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' 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' style="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   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=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$31 million)</p>
 </td>
 <td   colspan=3 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">3.5</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">144</p>
 </td>
 <td   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">144</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">3.5</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">144</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' style="margin-top:0;margin-bottom:0">Japanese Yen (JPY3,759 million)</p>
 </td>
 <td   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">&#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">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' 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   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   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=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' 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   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' 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>
 <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>&nbsp;</b></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b>Year Ended December 31, 2006</b></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:103.52%;;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=right style=';text-align:right' 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=right style='text-align:right' 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 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=right style='text-align:right' 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=right style='text-align:right' 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=right style=';text-align:right' style="margin-top:0;margin-bottom:0"><b>In 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=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=right style='text-align:right' 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</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">130</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='margin-right:.4pt;text-align:right' style="margin-top:0;margin-bottom:0">167</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">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"> 847</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">41,510</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">539</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">40,971</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">965</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">47,228</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">7.85% to <br>
 10.625%</p>
 </td>
 <td   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:.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">&#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">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</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">69</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">55</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">46</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">33</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"> 483</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">23,683</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">5,326</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">18,357</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">376</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">18,438</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">1.75% to<br>
 10%</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 10%</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 10%</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">4.515% to 4.70%</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">Philippine
 Peso</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">&#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">17</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">810</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"> 808</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">21</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">1,035</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">&#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">15%</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</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">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">92</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">81</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">53</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='text-align:right' 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' style="margin-top:0;margin-bottom:0">17,392</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">74</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">17,318</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">355</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">17,392</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%; 0.05% to 2.75% 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">0.05% to 2.75% 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">0.05% to 2.75% 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">0.05% to 2.5% 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='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</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">11</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">11</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">23</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='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='text-align:right' style="margin-top:0;margin-bottom:0">2,511</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">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">2,499</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">51</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">2,511</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">3% over<br>
 90-day PHIBOR, MART1 + 0.75%</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">MART1 + 0.75%</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">MART1 + 0.75%</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">MART1 + 0.75%</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=' 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>1,752</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>85,906</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>5,953</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>79,953</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>1,768</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>86,604</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' 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' style="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   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=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$63 million)</p>
 </td>
 <td   colspan=3 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">9</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">423</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' 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">423</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">9</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">423</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' style="margin-top:0;margin-bottom:0">Japanese Yen (JPY7,519 million)</p>
 </td>
 <td   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">&#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">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' 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   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   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=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' 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   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' 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>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Fixed rate financial instruments are subject to fair
value interest rate risk while floating rate financial instruments are subject
to cash flow interest rate risk.  </p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">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 the particular instrument.
Financial instruments that are not subject to interest rate risk were not
included in the above tables.</p>

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:0in;text-indent:.5in' style="margin-top:0;margin-bottom:0">Management conducted a survey among our banks to
determine the outlook of the U.S. dollar and Philippine peso interest rates
until our next reporting date of March 31, 2008 and 2007.  Our outlook is that
the U.S. dollar and Philippine peso interest rates may move 190 basis points
and 30 basis points higher/lower, respectively, as compared to levels at
year-end 2007 and 100 basis points and 5 basis points higher/lower,
respectively, as compared to levels at year-end 2006.  At December 31, 2007, if
U.S. dollar interest rates had been 190 basis points higher/lower as compared
to market levels at year-end 2007 and 100 basis points higher/lower as compared
to market levels at year-end 2006, with all other variables held constant,
profit after tax for the year 2007 and 2006 would have been lower/higher by
Php1,527 million and Php44 million, respectively, mainly as a result of
higher/lower interest expense on floating rate borrowings and losses and gains
on derivatives transactions.  Stockholders&#146; equity would have been lower/higher
by Php1,459 million and Php44 million, as at December 31, 2007 and 2006,
respectively, mainly as a result of a decrease/increase in the fair value of
cash flow hedges.  At December 31, 2007 and 2006, if Philippine peso interest
rates had been higher/lower by 30 basis points and 5 basis points,
respectively, as compared to market levels at year-end 2007 and 2006, with all
other variables held constant, profit before tax would have been lower/higher
by Php1,132 million and Php853 million for 2007 and 2006, respectively, mainly
as a result of higher/lower interest expense on floating rate borrowings and
losses and gains on derivatives transactions.</p>

<p style='margin-left:0in;text-indent:.5in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Credit Risk</i></p>

<p align=left style='text-align:left;text-indent:.5in;
line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Credit risk is the risk that we will incur a loss
arising from our customers, clients or counterparties that fail to discharge
their contractual obligations.  We manage and control credit risk by setting
limits on the amount of risk we are willing to accept for individual
counterparties and by monitoring exposures in relation to such limits.</p>

<p align=left style='text-align:left;text-indent:.5in;
line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">We trade only with
recognized and 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 on-going
basis to reduce our exposure to bad debts.</p>

<p align=left style='text-align:left;text-indent:.5in;
line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">We established a credit quality review process to
provide regular identification of changes in the creditworthiness of
counterparties.  Counterparty limits are established and periodically reviewed
based on latest available financial data on our counterparties&#146; credit ratings,
capitalization, asset quality and liquidity.  Our credit quality review process
allows us to assess the potential loss as a result of the risks to which we are
exposed and take corrective actions.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The table below shows
the maximum exposure to credit risk for the components of the consolidated
balance sheet, including derivative instruments.</p>

<p align=left style='text-align:left;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:99.04%;border-collapse:collapse'>

 <tr style='page-break-inside:avoid;height:12.0pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:12.0pt'>
 <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-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:12.0pt'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Gross Maximum
 Exposure</b><b>(1)</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:12.0pt'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Net Maximum
 Exposure</b><b>(2)</b></p>
 </td>
 </tr>
 <tr style='height:9.85pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:9.85pt'>
 <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:9.85pt'>
 <p align=center style='margin-right:3.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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=center style='margin-right:3.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=center style='margin-right:3.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=center style='margin-right:3.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.5pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:11.5pt'>
 <p style='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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(in millions)</b></p>
 </td>
 </tr>

 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Loans and receivables:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:17.6pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Advances and refundable deposits</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php734</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php647</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php734</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php647</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,447</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,870</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,406</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,833</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,366</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,520</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,366</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,520</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Investment in debt securities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,115</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,115</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign administrations</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,324</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,836</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,324</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,836</p>
 </td>
 </tr>
 <tr style='height:3.5pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Retail subscribers</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,861</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,027</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,861</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,027</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Corporate subscribers</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,040</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,742</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,040</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,742</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Domestic carriers</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,503</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,461</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,503</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,461</p>
 </td>
 </tr>
 <tr style='height:8.95pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Dealers, agents and others</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">917</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,092</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">917</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,092</p>
 </td>
 </tr>
 <tr style='height:8.95pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Held-to-maturity investments:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:9.85pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.85pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Investment in debt securities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">273</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.85pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">273</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Investments-available-for-sale</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">143</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">116</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">143</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">116</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Held-for-trading:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,049</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,807</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,049</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,807</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Forward foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">193</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">3</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">193</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">3</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term foreign currency options</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">59</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">434</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">59</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">434</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Bifurcated embedded derivatives</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">34</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">44</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">34</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">44</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivatives used for hedging:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Forward foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;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">670</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;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">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;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">670</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;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">&#150;</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>Total</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;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">Php46,728</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;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">Php36,599</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;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">Php46,687</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;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">Php36,562</p>
 </td>
 </tr>
</table></center></div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">__________</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>(1) Gross financial assets before taking into account any collateral
held or other credit enhancements or offsetting arrangements.</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>(2) Gross financial assets after taking into account any collateral held
or other credit enhancements or offsetting arrangements.</i></p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.25in;text-align:left;
text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
table below provides information regarding the credit quality by class of our
financial assets according to our credit ratings of counterparties:</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:97.02%;margin-left:.25in;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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Neither past due nor impaired</b></p>
 </td>
 <td   rowspan=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=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Past
 due but<br>
 not impaired</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <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"><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>Total</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>Class A</b>(1)</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>Class B</b>(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-left:.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Impaired</b></p>
 </td>
 </tr>
 <tr>
 <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   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">(in million pesos)</p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>December 31, 2007</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Loans and receivables:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Advances and refundable deposits </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php734</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php734</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,447</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15,150</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,297</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Short-term investments </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,366</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,637</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">729</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investment in debt securities </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,115</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,115</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Retail subscribers </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,179</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,389</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">637</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,823</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,330</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Corporate subscribers </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,915</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">641</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">187</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,166</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,921</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Foreign administrations </p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,371</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,828</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">861</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,635</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,047</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Dealers, agents and others </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,151</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">983</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">315</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">196</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">657</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Domestic carriers </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,884</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">119</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,373</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">381</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Held-to-maturity investments:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investment in debt securities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 273</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">273</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investments-available-for-sale</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 143</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">113</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Held-for-trading:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,049</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,049</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Forward foreign exchange contracts </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 193</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">190</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Long-term foreign currency options </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  59</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">59</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Bifurcated embedded derivatives </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  34</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">34</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Derivatives used for hedging(3):
 </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Forward foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 670</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">670</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>59,583</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>35,984</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>5,070</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6,193</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>12,336</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>December 31, 2006</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Loans and receivables:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Advances and refundable deposits </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 647</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">647</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,870</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15,756</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,114</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Short-term investments </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,520</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,218</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">302</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Corporate subscribers </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,160</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,267</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">206</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">211</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,476</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Retail subscribers </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,874</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">681</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">220</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,132</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,841</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Foreign administrations </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,342</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,609</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">816</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,411</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,506</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Dealers, agents and others </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,587</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,222</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">89</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,269</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Domestic carriers </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,965</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">372</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,060</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">503</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investments-available-for-sale</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 116</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">90</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">26</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Held-for-trading:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,807</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,807</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Long-term foreign currency options</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 434</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">434</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Bifurcated embedded derivatives</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  44</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Forward foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">   3</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;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:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php</b><b>53,369</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php</b><b>30,150</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php</b><b>2,721</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php</b><b>3,903</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php</b><b>16,595</b></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>   This includes low risk and good paying customer
accounts with no history of account treatment for a defined period and no
overdue accounts as at report date; and deposits or placements to
counterparties with good credit rating or bank standing financial review;</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>   This includes medium risk and average paying
customer accounts with no overdue accounts as at report date, and new customer
accounts for which sufficient credit history has not been established; and deposits
or placements to counterparties not classified as Class A; and</i></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>(3)</i><i>   Gross
receivables from counterparties, before any offsetting arrangements.</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 aging analysis of past due but not impaired class
of financial assets is 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:97.02%;margin-left:.25in;border-collapse:collapse'>

 <tr style='page-break-inside:avoid;height:7.5pt'>
 <td   rowspan=2 valign=bottom style=' padding:0in 0in 0in 0in;
 height:7.5pt'>
 <p style='margin-top:3.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:7.5pt'>
 <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>Total</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:7.5pt'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Neither past due
 nor impaired</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:7.5pt'>
 <p align=center style='margin-right:.05in;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Past due but not
 impaired</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;height:7.5pt'>
 <p align=center style='margin-right:.05in;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;height:24.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:24.75pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>1-60 days</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:24.75pt'>
 <p align=center style='margin-right:.3pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>61-90 days</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:24.75pt'>
 <p align=center style='margin-right:.05in;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Over 91 days</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:24.75pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Impaired</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=6 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>December 31, 2007</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <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=' background:#E0E0E0;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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Loans and receivables:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <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=' background:#F3F3F3;
 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=' background:#F3F3F3;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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Advances and refundable deposits </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Php734</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Php734</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Php&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Php&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Php&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Php&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,447</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">17,447</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Short-term investments </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,366</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">11,366</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investment in debt securities </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">1,115</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">1,115</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Retail subscribers </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,179</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">2,026</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,513</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">231</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">79</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">4,330</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Corporate subscribers </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">7,915</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">828</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">715</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">133</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">318</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">5,921</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign administrations </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">5,371</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-align:right;
 text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,689</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">902</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">316</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">417</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,047</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Dealers, agents and others </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,151</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">1,298</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">30</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">4</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">162</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">657</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Domestic carriers </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,884</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">130</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">88</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">103</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,182</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">381</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Held-to-maturity investments:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Investment in debt securities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"> 273</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">273</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investments-available-for-sale</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 143</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">143</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Held-for-trading:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,049</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,049</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Forward foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 193</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">193</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term foreign currency options</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">  59</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">59</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Bifurcated embedded derivatives </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">  34</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">34</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Derivatives used for hedging:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Forward foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 670</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">670</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;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;
 background:#F3F3F3;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"><b>59,583</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>41,054</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,248</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 787</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,158</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>12,336</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>December 31, 2006</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Loans and receivables:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Advances and refundable deposits </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">647</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">647</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents </p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">16,870</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">16,870</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term investments </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">5,520</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">5,520</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Corporate subscribers </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,160</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,473</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">139</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">38</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">34</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">6,476</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Retail subscribers </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">7,874</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">901</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">945</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">118</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">69</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">5,841</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign administrations </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">6,342</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">2,425</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">694</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">267</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">450</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">2,506</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Dealers, agents and others </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,587</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">1,229</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">25</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">54</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">1,269</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Domestic carriers </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,965</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">402</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">96</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">77</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">887</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">503</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investments-available-for-sale</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 116</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">116</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Held-for-trading:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,807</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,807</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term foreign currency options </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"> 434</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">434</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Bifurcated embedded derivatives</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  44</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.35pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Forward foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">   3</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">3</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;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:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;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">Php<b>53,369</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;
 background:#F3F3F3;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">Php<b>32,871</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;
 background:#F3F3F3;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">Php<b>1,899</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;
 background:#F3F3F3;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">Php<b>510</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;
 background:#F3F3F3;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">Php<b>1,494</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;
 background:#F3F3F3;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">Php<b>16,595</b></p>
 </td>
 </tr>
</table></center></div>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Impairment
assessments</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
main consideration for the impairment assessment include whether any payments
of principal or interest are overdue by more than 90 days or there are any
known difficulties in the cash flows of counterparties, credit rating
downgrades, or infringement of the original terms of the contract.  Our impairment
assessments are classified into two areas: individually assessed allowance and
collectively assessed allowance.</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>Individually
assessed allowance</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">We
determine the allowance appropriate for each individually significant loan or
advance on an individual basis. Items considered when determining allowance
amounts include the sustainability of the counterparty&#146;s business plan, its
ability to improve performance once a financial difficulty has arisen,
projected receipts and the expected dividend payout should bankruptcy ensue,
the availability of other financial support, the realizable value of
collateral, if any, and the timing of the expected cash flows.  The impairment
losses are evaluated at each reporting date, unless unforeseen circumstances
require more careful attention.</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>Collectively assessed allowances</i></p>

<p style='text-indent:40.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:40.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Allowances are assessed collectively for losses on
loans and advances that are not individually significant and for individually
significant loans and advances where there is no objective evidence of
individual impairment.  Allowances are evaluated on each reporting date with
each portfolio receiving a separate review. </p>

<p style='text-indent:40.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:40.5pt' style="margin-top:0;margin-bottom:0">The collective assessment takes account of
impairment that is likely to be present in the portfolio even though there is
no objective evidence of the impairment in an individual assessment. Impairment
losses are estimated by taking into consideration the following information;
historical losses on the portfolio, current economic conditions, the
approximate delay between the time a loss is likely to have been incurred and
the time it will identified as requiring an individually assessed impairment
allowance, and expected receipts and recoveries once impaired.  The impairment
allowance is then reviewed by credit management to ensure alignment with our
policy.</p>

<p align=left style='margin-left:.25in;text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.25in;text-align:left;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Capital Management</i></p>

<p align=left style='margin-left:.25in;text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">We aim to achieve an optimal capital structure in
pursuit of our business objectives, which include maintaining healthy capital
ratios and strong credit ratings, and maximizing shareholder value. </p>

<p align=left style='text-align:left;text-indent:.5in;
line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">In recent years, our cashflow from operations has
allowed us to substantially reduce debts and, in 2005, resume payment of common
dividends to shareholders.  Since then, our strong cashflows have enabled us to
make investments in new areas and pay higher dividends.</p>

<p align=left style='text-align:left;text-indent:.5in;
line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Our approach to capital management focuses on
balancing the allocation of cash and the incurrence of debt as we seek new
investment opportunities for new businesses and growth areas.  Our current
dividend policy is to pay out 70% of our core earnings to our shareholders.
Further, in the event no investment opportunities arise, we may consider the
option of returning additional cash to our shareholders in the form of special
dividends or share buybacks.  Philippine corporate regulations prescribe,
however, that we can only pay out dividends or make capital distribution up to
the amount of our unrestricted retained earnings.</p>

<p align=left style='text-align:left;text-indent:.5in;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">As part of our aim to maximize returns to our
shareholders, we obtained approval from our board of directors on January
29, 2008 for a buyback program of up to two million PLDT common shares.  See <i>Note
17 &#150; Equity</i>.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">Some of our debt instruments contain covenants that
impose maximum leverage ratios.  In addition, our credit ratings from the
international credit ratings agencies are based on our ability to remain within
certain leverage ratios.</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in' style="margin-top:0;margin-bottom:0">We monitor capital using several financial leverage
measurements calculated in conformity with Philippine Financial Reporting
Standards, such as net debt to equity ratio.  Net debt is derived by deducting
cash and cash equivalents and short-term investments from total debt (notes
payable and long-term debt).  Our objective is to maintain our net debt to
equity ratio below 100%.</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:94.28%;border-collapse:collapse;width:94.28% !msorm;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-top: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   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;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:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </td>
 </tr>
 <tr style='height:8.0pt' style='height:8.0pt !msorm'>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:8.0pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;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 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:8.0pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>

 <tr style='height:8.1pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;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:.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:8.1pt'>
 <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:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:8.1pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Long-term debt, including current
 portion</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php60,147</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <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:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php79,953</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Notes payable</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">493</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">201</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total debt</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">60,640</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">80,154</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">Cash and cash equivalents</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">(17,447)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(16,870)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(13,415)</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8,327)</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">Net debt</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">29,778</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">54,957</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Equity attributable to equity holders of PLDT</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">111,113</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">102,521</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">Net debt to equity ratio</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;
 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:.05in;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:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">54%</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
further discussions of these risks, see <i>Note 24 &#150; Contractual Obligations
and Commercial Commitments</i> to the accompanying audited consolidated
financial statements in Item 18.</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286194"></a><a
name="_Toc75779253"></a><a name="_Toc46082315"><b>Item
12.    Description of Securities Other than Equity Securities</b></a></p>

<p style='line-height:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Not
Applicable.</p>

<p style='line-height:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><a name="_Toc170286195"></a><a
name="_Toc75779254"></a><a name="_Toc46082316">PART
II</a></h1>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286196"></a><a name="_Toc75779255"></a><a
name="_Toc46082317"><b>Item 13.    Defaults,
Dividend Arrearages and Delinquencies</b></a></p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">None.</p>

<p style='text-indent:.5in;line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286197"></a><a name="_Toc75779256"></a><a
name="_Toc46082318"><b>Item 14.    Material
Modifications to the Rights of Security Holders and Use of Proceeds</b></a></p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">None.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc75779257"></a><a
name="_Toc46082319">&nbsp;</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286198"><b>Item 15.    Controls and Procedures</b></a><b> </b></p>

<p style='text-indent:.5in;line-height:9.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Disclosure Controls and Procedures.</b>  Our management, with the participation of our
principal executive officer and principal financial officer, carried out an
evaluation on the effectiveness of our disclosure controls and procedures (as
defined in Rule 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934,
as amended) as at December 31, 2007.  Based on this evaluation, our chief
executive officer and principal financial officer concluded that our disclosure
controls and procedures were effective as at December 31, 2007. </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Management&#146;s
Annual Report on Internal Control Over Financial Reporting.</b>  Management is responsible for establishing and
maintaining adequate internal control over financial reporting.  Our internal
control over financial reporting is a process designed under the supervision of
our principal executive and principal financial officers to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of our financial statements for external reporting purposes in accordance with IFRS.
Our internal control over financial reporting includes policies and procedures
that pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect transactions and dispositions of assets; provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with IFRS, and that receipts
and expenditures are being made only in accordance with authorizations of our
management and directors; and provide reasonable assurance regarding prevention
or timely detection of unauthorized acquisition, use or disposition of our
assets that could have a material effect on our financial statements. </p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
management conducted an assessment of the effectiveness of our internal control
over financial reporting based on the framework established in Internal Control
&#150; Integrated Framework issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO). Based on this assessment, management has
determined that our internal control over financial reporting as at December 31, 2007 is effective.  </p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">SyCip
Gorres Velayo &amp; Co. (a member firm of Ernst &amp; Young Global), the independent
registered public accounting firm has
audited our consolidated financial statements included in this Annual Report
and has issued an attestation report on our
internal control over financial reporting as at December 31, 2007.  This
attestation report is set forth in Item 18 &#147;Financial Statements&#148;.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><b>Changes
in Internal Control Over Financial Reporting.  </b>During 2007, no change to our internal control over
financial reporting occurred that has materially affected, or is reasonably
likely to materially affect, our internal control over financial reporting</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="_Toc170286199"></a><a name="_Toc75779258"></a><a
name="_Toc46082320"><b>Item 16A. Audit Committee
Financial Expert</b></a></p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
board of directors has determined that currently none of the members of the
Audit Committee is an audit committee financial expert as defined under the
applicable rules of the U.S. SEC issued pursuant to Section 407 of the
Sarbanes-Oxley Act of 2002.  However, our board of directors believes that the
audit committee members along with its advisors, possess sufficient financial
knowledge and experience.  Our board of directors has appointed one of our
non-independent directors, Ms. Corazon de la Paz-Bernardo, as Audit Committee
advisor to render advice on complex financial reporting or accounting issues
that may be raised in our Audit Committee&#146;s evaluation of our financial
statements and other related matters.  Formerly the Chairman and a Senior
Partner of Joaquin Cunanan &amp; Company (a member firm of
PricewaterhouseCoopers Worldwide), Ms. Corazon de la Paz-Bernardo is a
certified public accountant and possesses in-depth knowledge of accounting
principles (including IFRS), internal controls and procedures for financial
reporting and audit committee functions, as well as extensive experience in
overseeing or actively supervising the preparation, audit, analysis or
evaluation of financial statements and in addressing complex and general
financial reporting, accounting and audit issues.</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><a name="OLE_LINK43"></a><a name="OLE_LINK42"></a><a
name="_Toc170286200"></a><a name="_Toc75779259"><b>Item
16B. Code of Business Conduct and Ethics</b></a></p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">On
March 30, 2004, our board of directors approved and adopted our Code of
Business Conduct and Ethics, or Code of Ethics, which was revised and amended
in 2006, that sets out our business principles and standards of behavior and
business relationships.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">It is our declared objective that
all our actions and those of our directors, officers and employees must, at all
times, be consistent with the principles of accountability, integrity, fairness
and transparency.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
Code of Ethics provides standards to foster honest and ethical behavior
including the following:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Compliance with applicable laws,
rules and regulations;</p>

<p style='margin-left:.75in;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">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ethical handling of conflicts of
interest, corporate opportunities and confidential information;</p>

<p style='margin-left:.75in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Protection and proper use of our
assets;</p>

<p style='margin-left:.75in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Fair dealing with our employees,
customers, service providers, suppliers and competitors;</p>

<p style='margin-left:.75in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Compliance with our reporting and
disclosure obligations to the relevant regulators and the investors;</p>

<p style='margin-left:.75in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Compliance with our disclosure and
financial reporting controls and procedures;</p>

<p style='margin-left:.75in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Assessment and management of risks
involved in our business endeavours; and</p>

<p style='margin-left:.75in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in' style="margin-top:0;margin-bottom:0">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Adoption of international best
practices of good corporate governance in the conduct of our business.</p>

<p style='margin-left:.75in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>Corporate
Governance</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">Our
Code of Ethics was adopted to strengthen the implementation of our Corporate
Governance Manual, or Governance Manual, subsequently reviewed and amended in
January 30, 2007, which was adopted and approved by our board of directors in
September 2002, and was revised and amended on January 30, 2007.  Our
Governance Manual seeks to institutionalize the principles of good governance
that our board of directors and management believe to be a necessary component
of sound business management.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our Governance Manual conforms
with the requirements of the Code of Corporate Governance, or Philippine SEC
Governance Code, that was promulgated by the Philippine Securities and Exchange
Commission, or Philippine SEC, under the Philippine SEC Memorandum Circular No.
2, Series of 2002, on April 5, 2002 to promote good corporate governance.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">In compliance with the Philippine SEC Governance Code
and consistent with the relevant provisions of the Securities Regulation Code
and Corporation Code of the Philippines, our Governance Manual covers the
following key areas:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-align:justify;text-indent:
- -.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The qualifications and grounds for
disqualification for directorship;</p>

<p style='line-height:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The requirement that at least two
or twenty percent of the members of our board of directors, whichever is
lesser, must be independent directors and the standards/criteria for the
determination of independent directors;</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The duties and responsibilities of
our board of directors and the individual directors;</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our board committees,
specifically, the nomination committee, audit committee and executive
compensation committee, the composition and the principal duties and
responsibilities of such committees;</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The role of our chairman in
ensuring compliance with the corporate governance principles;</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The role of our president/chief executive
officer in ensuring that our organizational and procedural controls are
adequate and effective to ensure reliability and integrity of financial and
operational information, effectiveness and efficiency of operations,
safeguarding of assets and compliance with laws, rules, regulations and
contracts;</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The duties and responsibilities of
our corporate secretary/assistant corporate secretary in terms of the support
services that they need to provide our board in upholding sound corporate
governance;</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The duties and responsibilities of
the head of our internal audit organization that would provide our board of
directors, management and shareholders with reasonable assurance that our key
organizational and procedural controls are appropriate, adequate, effective and
reasonably complied with;</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The functions of our independent
auditors that would reasonably ensure an environment of sound corporate
governance as reflected in our financial records and reports; the requirement
that non-audit work of the independent auditors should not conflict with their
function as independent auditors; the requirement to rotate, at least once
every five years, the independent auditors or the lead partner assigned to
handle the independent audit of our financial statements;</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">10.&nbsp;&nbsp;&nbsp;&nbsp;
Our commitment to respect and
promote shareholders&#146; rights such as voting right, pre-emptive right,
inspection right, dividend right, appraisal right, and right to receive
information about the background, business experience, compensation and
shareholdings of our directors and officers and their transactions with us;</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">11.&nbsp;&nbsp;&nbsp;&nbsp;
The requirement to appoint a
compliance officer and the duties and responsibilities of such compliance
officer including the establishment of an evaluation system to determine and
measure compliance with the provisions of our Governance Manual; and</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">12.&nbsp;&nbsp;&nbsp;&nbsp;
The penalties for violations of
our Governance Manual.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">In
addition, we adopted a more extensive Conflict of Interest Policy (&#147;COI
Policy&#148;) in 2005.  On January 31, 2006, the Board approved a Policy on Gifts,
Entertainment and Sponsored Travel and the Supplier/Contractor Relations
Policy.  Finally, on May 9, 2006, the Board approved the Expanded
Whistleblowing Policy, or EWB, or the Administrative Order on the Handling of
Employee Disclosures and Complaints regarding violations of the corporate governance
rules, questionable accounting or auditing matters, and offenses covered by our
table of penalties.  In addition, on the same date, the Board adopted an
Administrative Order creating the structures and rules on officer discipline.  As
part of the embedding of corporate governance standards in the performance
evaluation of our personnel, the Policy on Employee Qualification for
Incentives and Rewards was amended in 2007 to include corporate governance policy
violations as a disqualification factor.  All these policies and rules
(collectively, the Corporate Governance Rules, or CG Rules) comply with the
requirements of the Philippine and U.S. Securities and Exchange Commissions and
New York Stock Exchange rules, as may be applicable.  From 2005 to 2007, our
subsidiaries have also adopted corporate governance rules and policies
substantially similar in substance and form to our CG Rules, as well as
appointed their respective corporate governance officers.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Further,
we have communicated to our business partners, including suppliers, our
commitment to, as well as expectations on, good corporate governance.  To
ensure that relations between our company and business partners are imbued with
our standards on good corporate governance, we have held supplier/contractor&#146;s
briefings and have developed written corporate governance guidelines for
suppliers and contractors, to which our suppliers and contractors are expected
to consent in writing, thereby including, their understanding and acceptance of
these standards as indispensable in doing business with us.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our
corporate governance education and communication activities focused on results
of a culture risk assessment done in the period from December 2006 to January 2007.
In addressing identified risks, the two main objectives were strengthening
ethical decision-making skills among our officers, executives and team leaders,
as well as strengthening ethics and customer service orientation among
identified key responsible business units in the PLDT Group.  Pursuant thereto,
we have conducted various activities, such as:</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
training sessions and workshops
based on concepts and modules developed by the Corporate Governance Office and
facilitated by various professionals, both local and international, known in
the field of corporate governance and ethics;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
development and operation of an e-learning
session on Conflict of Interest, which involved the development and publication
of a 5-minute audio-video material discussing the Conflict of Interest Policy
in simple terms and with examples.  All supervisors and rank and file employees
of PLDT are required to undergo the session, which was launched in September
2007; and</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
development and distribution of
the Corporate Governance Handbook, and other literature, including monthly and
weekly e-mail newsletters and summaries.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our corporate governance framework involves three
development phases: compliance, competency, and character/culture.  Following our
corporate governance framework of engineering, education and enforcement, our
corporate governance was elevated from the compliance level to the competency
level.  In succeeding years, we aim to achieve strong ethical corporate
character or culture, thereby completing the three C&#146;s of our corporate
governance.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Aside
from the continuation and improvement of our various programs geared towards
ethical culture-building and enabling ethical decision-making, our plans include
commissioned research to come up with an Ethical Compliance Framework for
Philippine Business to align local culture with a global compliance culture,
and participation in a Companies Circle project to undertake an inventory of
Philippine SEC and PSE corporate governance regulations for the guidance of all
Philippine corporations.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">We
have also summarized on our website the differences between our corporate
governance practices and those required of U.S. listed companies under NYSE
Section 303A.11.  </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-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">To
access our Code of Ethics, Governance Manual or the differences between our
corporate governance practices and those required of U.S. listed companies
under NYSE Section 303A.11, please refer to:</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:.5in' style="margin-top:0;margin-bottom:0">http://www.pldt.com.ph/download/pldt-corpgov_manual.pdf
OR <br>
http://www.pldt.com.ph/cgov/downloads/pldt-corpgov_manual.pdf</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">http://www.pldt.com.ph/download/pldt-code_ethics.pdf
OR http://www.pldt.com.ph/cgov/downloads/Code%20of%20Ethics(BD_APPRVD)-03.30.04.pdf</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">http://www.pldt.com.ph/download/pldt-disclosure.pdf
OR <br>
http://www.pldt.com.ph/cgov/downloads/NYSE-PLDT_CG-DISC-07.01.pdf</p>

<p style='text-indent:.5in;line-height:8.0pt;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>Chief Governance Officer</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' style="margin-top:0;margin-bottom:0">Our
chief governance officer is responsible for monitoring compliance with,
interpreting and deciding any issues arising from, investigating and
determining violations and recommending the disciplinary actions against
violators of our Governance Manual and Code of Ethics.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0"><i>Board and Board Committees</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 have maintained our board&#146;s independence from
management through the separation of the posts of the board chairman and
president and chief executive officer.  Each position has distinct and separate
duties and responsibilities as contained in our By-Laws and Governance Manual.
In addition, we have four independent directors, namely, Rev. Fr. Bienvenido F.
Nebres, S.J. and Messrs. Oscar S. Reyes, Pedro E. Roxas, and Alfred V. Ty.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">To assist
our board in fulfilling its duties and functions, we have four board committees,
namely the governance and nomination, audit, executive compensation and
technology strategy committees.  Each committee has a board-approved written
charter that provides for such committee&#146;s composition, membership
qualifications, functions and responsibilities, conduct of meetings, and
reporting procedure to the board.  See
Item 6. &#147;Directors, Senior Management and Employees &#150;&#150; Audit, Governance and
Nomination, Executive Compensation and Technology Strategy Committees&#148; for
further details.</p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Internal Audit Organization</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">We have an internal audit organization that determines
whether our network or risk management, control and governance processes are
adequate and functioning to ensure that:</p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Risks are appropriately identified
and managed;</p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Significant financial, managerial,
and operating information are accurate, reliable, and timely;</p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Employees&#146; actions are in
compliance with policies, standards, procedures, and applicable laws and
regulations;</p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Resources are acquired
economically, used efficiently, and adequately protected;</p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Programs, plans and objectives are
achieved;</p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Quality and continuous improvement
are fostered in our control process;</p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Significant legislative or regulatory
issues impacting us are recognized and addressed appropriately; and</p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interaction with various
governance groups occurs as needed.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">To ensure independence, the head
of our internal audit organization reports functionally to our audit committee
and administratively to our president and chief executive officer.  He is
accountable to management and our audit committee in the discharge of his
duties and is required to:</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Provide annually an assessment on
the adequacy and effectiveness of our processes for controlling our activities
and managing our risks;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Report significant issues related
to the processes of controlling our activities, including potential
improvements to those processes, and provide information concerning such
issues;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Periodically provide information
on the status and results of the annual audit plan and the sufficiency of our
internal audit organization&#146;s resources; and</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Coordinate with and provide
oversight of other control and monitoring functions (risk management,
compliance, security, legal, ethics, environmental, external audit).</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our internal audit organization
has a charter that has been approved by our audit committee.  It seeks to
comply with the Standards for the Professional Practice of Internal Auditing of
The Institute of Internal Auditors in the discharge of its scope of work and
responsibilities.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="OLE_LINK28"></a><a
name="OLE_LINK27"><i>Policy on Employee
Disclosure on Violations of the Corporate Governance Rules, Questionable
Accounting or Auditing Matters, and Offenses Covered By the Company&#146;s Table of
Penalties</i></a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We have expanded our written
policy on the handling of employees&#146; anonymous and non-anonymous complaints or
disclosures on violations or irregularities to cover accounting, internal
controls and auditing matters, as well as corporate governance rules and
offenses covered by our table of penalties.  Said policy also provides
protection against retaliation for those employees who make such complaints or
disclosures.  We have likewise established dedicated structures and facilities
(post office box, e-mail, hotline number, fax and website) for the submission
of such disclosures or complaints. </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Any
employee may submit a complaint or disclosure of the above nature to the
Corporate Governance Office (CGO) or the chief governance officer, verbally or
in writing.  The CGO shall conduct a preliminary evaluation to determine the
appropriate investigating unit to which the case shall be assigned for further
action.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The CGO monitors the cases
reported and ensures the appropriate reporting to our audit committee, governance
and nomination committee, or any other relevant committee or body on the
results of the investigations and the prompt referrals of findings to the
appropriate units concerned.  Our committees on officer or employee discipline,
as the case may be, are responsible for evaluating and approving the
appropriate disciplinary action against erring officers and employees.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">The
public may obtain information on our Code of Ethics, Governance Manual and
Charters of our Board Committees through our website.  We undertake to provide
a copy, without charge, to any person requesting for such copy from our chief
governance officer, Atty. Ma. Lourdes C. Rausa-Chan<i>, </i>who can be reached
at e-mail address<i> lrchan@pldt.com.ph </i>or telephone number +632-816-8556.
We also maintain a website at <i>www.pldt.com.ph </i>on which reports filed by
us and other information may be accessed.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286201"></a><a
name="_Toc75779260"><b>Item 16C. Principal Accountant
Fees and Services</b></a><b> </b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:.5in;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table
summarizes the fees paid or accrued for services rendered by our independent auditor
for the fiscal years ended December 31, 2007 and 2006:</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='margin-left:45.9pt;border-collapse:collapse'>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=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>2007</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>2006</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  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">(in millions)</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&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=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Audit Fees</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php41</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php47</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">All Other Fees</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">25</p>
 </td>
 <td  valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">29</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>Php66</b></p>
 </td>
 <td  valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td  valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>Php76</b></p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Audit Fees</i>.  This category includes the audit
of our annual financial statements, review of interim financial statements and
services that are normally provided by the independent auditor in connection
with statutory and regulatory filings or engagements for those fiscal years.  </p>

<p style='text-indent:.5in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><i>All Other Fees</i>.  This category consists primarily of fees with respect to
our Sarbanes-Oxley Act 404 assessment, certain projects and out-of-pocket and
incidental expenses.</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 fees presented above include
out-of-pocket expenses incidental to our independent auditors&#146; work, which
amounts do not exceed 5% of the agreed-upon engagement fees.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">Our audit committee pre-approves all audit and non-audit
services as these are proposed or endorsed before these services are performed
by our independent auditors.  </p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0"><a name="_Toc46082321">&nbsp;</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286202"></a><a
name="_Toc75779261"><b>Item 16D. Exemption from
the Listing Standards for Audit Committees</b></a></p>

<p style='text-indent:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Not applicable.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286203"></a><a
name="_Toc75779262"><b>Item 16E.  Purchases of
Equity Securities by the Issuer and Affiliated Purchaser</b></a></p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin:0in;margin-bottom:.0001pt;text-align:
left;text-indent:.5in;line-height:normal;page-break-after:avoid' style="margin-top:0;margin-bottom:0">There were no share purchases by or on behalf of PLDT or any
affiliated purchaser of shares of PLDT during the fiscal year ended December
31, 2007.  </p>

<p style='text-indent:0in;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;punctuation-wrap:
hanging' style="margin-top:0;margin-bottom:0">On January 29, 2008, our board of
directors approved a share buyback program of up to two million shares of
PLDT&#146;s common stock, representing approximately 1.1% of PLDT&#146;s total outstanding
shares of common stock.  As at March 25, 2008, we acquired a total of 98,000
shares of common stock based on the buyback program.  The subsequent
acquisition of shares of PLDT&#146;s common stock pursuant to the buyback program has
no effect on our basic and diluted earnings per share for the years ended
December 31, 2007 and 2006.</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.3in;margin-bottom:.0001pt;text-indent:-.3in;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><a name="_Toc170286204"></a><a
name="_Toc75779263">PART III</a></h1>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc46082322"></a><a
name="_Toc75779264">&nbsp;</a></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286205"><b>Item 17.    Consolidated Financial Statements</b></a><b> </b></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
Company has elected to provide the financial statements and related information
specified in Item 18 in lieu of Item 17.</p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286206"></a><a
name="_Toc75779265"><b>Item 18.    Consolidated Financial
Statements</b></a></p>

<p style='text-indent:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Index
to Financial Statements</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>
 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b><u>Page</u></b></p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;margin-right:.5in;margin-bottom:
 3.0pt;margin-left:.25in;text-indent:-.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">PHILIPPINE LONG DISTANCE TELEPHONE COMPANY AUDITED
 ANNUAL FINANCIAL STATEMENTS</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-bottom:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:3.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Report of Independent Registered Public Accounting
 Firm</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-bottom:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">127</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:3.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Report of Independent Registered Public Accounting
 Firm</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-bottom:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">128</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:3.0pt;line-height:normal' style="margin-top:0;margin-bottom:0">Consolidated Balance Sheets as at December 31, 2007 and 2006</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">130</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:3.0pt' style="margin-top:0;margin-bottom:0">Consolidated
 Statements of Income for the Years Ended December 31, 2007 and 2006 </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">132</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:3.0pt;
 margin-left:.25in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">Consolidated
 Statements of Changes in Equity for the Years Ended December 31, 2007 and 2006
 </p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">133</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:3.0pt' style="margin-top:0;margin-bottom:0">Consolidated
 Statements of Cash Flows for the Years Ended December 31, 2007 and 2006 </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">134</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:3.0pt' style="margin-top:0;margin-bottom:0">Notes
 to Consolidated Financial Statements</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-bottom:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">136</p>
 </td>
 </tr>
</table></center></div>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="_Toc170286207"></a><a
name="_Toc75779266"><b>Item 19.    Exhibits</b></a></p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">See
Item 18 above for details of the financial statements filed as part of this
annual report.</p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Exhibits
to this report:</p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><u>&nbsp;</u></b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:99.66%;margin-left:5.4pt;border-collapse:collapse'>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">1(a).</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Articles of Incorporation (incorporated by reference to PLDT&#146;s Form
 20-F as filed with the Securities and Exchange Commission in May 2001)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">1(b).</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">By-Laws (as amended on June 28, 2005) (incorporated by reference to
 PLDT&#146;s Form 20-F as filed with the Securities and Exchange Commission in June
 2006)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">2.</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We have not included as exhibits certain instruments with respect to
 our long-term debt, the amount of debt authorized under each of which does
 not exceed 10% of out total assets, and we agree to furnish a copy of any
 such instrument to the Securities and Exchange Commission upon request.</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">4.</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Material Contracts</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">6.</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Computation of Earnings Per Share</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">7.</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Calculation of Ratio of Earnings to Fixed Charges</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">8.</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Subsidiaries</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">12.1</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Certification of Chief Executive Officer required by Rule 13a-14(a) of
 the Exchange Act </p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">12.2</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Certification of the Principal Financial Officer required by Rule
 13a-14(a) of the Exchange Act</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">13.1</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Certification of Chief Executive Officer required by Rule 13a-14(b) of
 the Exchange Act</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">13.2</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Certification of the Principal Financial Officer required by Rule
 13a-14(b) of the Exchange Act</p>
 </td>
 </tr>
</table></center></div>

<br clear=all
style='page-break-before:always'>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
normal' style="margin-top:0;margin-bottom:0">SIGNATURE</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-align:justify;text-indent:.5in' style="margin-top:0;margin-bottom:0">The registrant hereby certifies that it meets all of
the requirements for filing on Form 20-F and that it has duly caused and
authorized the undersigned to sign this annual report on its behalf.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align=right>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td  colspan=3 valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">PHILIPPINE LONG DISTANCE TELEPHONE COMPANY</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-right:.8pt' style="margin-top:0;margin-bottom:0">By:</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">                /s/
 Ma. Lourdes C. Rausa-Chan</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">MA. LOURDES C. RAUSA-CHAN</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:.1in;text-align:center' style="margin-top:0;margin-bottom:0">Senior Vice President, Corporate Affairs and Legal</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Services Head and Corporate Secretary</p>
 </td>
 </tr>
</table></center></div>

</div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Date:  April 9, 2008</p>

<b><br clear=all style='page-break-before:always'>
</b>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><a name="_Toc170286208"></a><a
name="_Toc75779267"></a><a name="_Toc67395411">EXHIBIT
INDEX</a></h1>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse'>

 <tr>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal;page-break-after:auto' style="margin-top:0;margin-bottom:0"><a name="_Toc46082326">Exhibit<br>
 Number</a></p>
 </td>
 <td   valign=bottom style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:45.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Description of Exhibit</b></p>
 </td>
 </tr>

 <tr>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">1(a)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Articles of Incorporation
 (incorporated by reference to PLDT&#146;s Form 20-F as filed with the Securities
 and Exchange Commission in May 2001)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">1(b)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">By-Laws (as amended on June
 28, 2005) (incorporated by reference to PLDT&#146;s Form 20-F as filed with the
 Securities and Exchange Commission in June 2006)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">We have not included as
 exhibits certain instruments with respect to our long-term debt, the amount
 of debt authorized under each of which does not exceed 10% of out total
 assets, and we agree to furnish a copy of any such instrument to the
 Securities and Exchange Commission upon request.</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">4(a)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Stock Purchase and Strategic
 Investment Agreement, dated September 28, 1999, by and among PLDT, First
 Pacific Limited, Metro Pacific Corporation, Metro Pacific Asia Link Holdings,
 Inc., Metro Pacific Resources, Inc. and NTT Communications Corporation
 (incorporated by reference to PLDT&#146;s Form 6-K for the month of September
 1999)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">4(b)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Executive Stock Option Plan
 (incorporated by reference to PLDT&#146;s Form 20-F as filed with the Securities
 and Exchange Commission in May 2001)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">4(c)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Master Restructuring
 Agreement, dated June 21, 2000, as amended on December 12, 2000 and December
 19, 2000, between Piltel, Piltel (Cayman) Limited, PLDT, The Chase Manhattan
 Bank, as escrow agent, Metropolitan Bank and Trust Company, as administrative
 agent and the creditors named therein (incorporated by reference to PLDT&#146;s Form
 20-F as filed with the Securities and Exchange Commission in May 2001)</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">4(d)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">The Cooperation Agreement, dated January
 31, 2006, entered into by and among PLDT, First Pacific, Metro Pacific
 Corporation, Metro Asia Link Holdings, Inc., Metro Pacific Resources, Inc.,
 Larouge B.V., Metro Pacific Assets Holdings, Inc., NTT Communications and NTT
 DoCoMo (incorporated by reference to Schedule 13D/A (Amendment No.2) as filed
 with the United States Securities and Exchange Commission by Nippon Telegraph
 and Telephone Corporation and NTT Communications Corporation on January 31,
 2006) </p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Computation of Earnings Per Share</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Calculation of Ratio of
 Earnings to Fixed Charges </p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Subsidiaries </p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">12.1</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Certification of Chief
 Executive Officer required by Rule 13a-14(a) of the Exchange Act </p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">12.2</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Certification of the
 Principal Financial Officer required by Rule 13a-14(a) of the Exchange Act</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">13.1</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Certification of Chief
 Executive Officer required by Rule 13a-14(b) of the Exchange Act</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">13.2</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Certification of the
 Principal Financial Officer required by Rule 13a-14(b) of the Exchange Act</p>
 </td>
 </tr>
</table></center></div>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=right style='text-align:right;line-height:10.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&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=right style='text-align:right;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=right style='text-align:right;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style='text-align:center;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<b><i><br
clear=all style='page-break-before:always'>
</i></b>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=right style='text-align:right;line-height:10.0pt' style="margin-top:0;margin-bottom:0"><b>EXHIBIT 6</b></p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">PHILIPPINE LONG DISTANCE
TELEPHONE COMPANY</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Computation
of Earnings Per Share</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>For the years 2007 and 2006</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Amounts in conformity with IFRS</i></b></p>

<p style='margin-left:13.5pt;text-indent:-13.5pt' 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 align=left
   style='width:98.86%;border-collapse:collapse;margin-left:6.75pt;
 margin-right:6.75pt'>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-top:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>
 </td>
 <td   valign=top style=' border:none;border-top:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:5.75pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</b>(1)</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:5.75pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:5.75pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2006</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>
 </td>
 <td   colspan=3 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:5.75pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(in millions, except
 earnings per common share)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Earnings per share</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:31.5pt;text-indent:-.2in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net income (loss) after cumulative
 effect of change in accounting policy</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$949</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php39,289</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php32,385</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deduct:  Dividends on preferred stock </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(457)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(455)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:40.5pt;text-indent:-22.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">               Accretion to redemption
 value of preferred stock subject to mandatory conversion</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <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;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net income (loss) attributable  to common
 shareholders</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$938</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php38,832</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php31,930</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:12.6pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:31.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net income (loss) after cumulative
 effect of change in accounting policy</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$949</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php39,289</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php32,385</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deduct:  Dividends on preferred stock </p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <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=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(440)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(455)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:40.5pt;text-indent:-22.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">               Accretion to redemption
 value of preferred stock<br>
 subject to mandatory conversion</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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">131</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:40.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign exchange gain on preferred stock subject to
 mandatory conversion</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(182)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:12.6pt;text-indent:5.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net income (loss) applicable to common
 shareholders</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$937</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php38,798</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php31,930</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:12.6pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:31.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Weighted average number of common shares
 (in thousands)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;text-indent:9.9pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Outstanding common shares, beginning</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">188,435</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">180,789</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.3in;text-indent:5.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Effect of issuance of common shares
 during the year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">221</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,667</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">188,656</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">184,456</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Weighted average number of common shares (in
 thousands)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Outstanding common shares, beginning</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">188,435</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">180,789</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Effect of issuance of common shares during the year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">221</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,667</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Weighted average number of shares under ESOP during
 the year(2)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">98</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Common share equivalent of preferred shares deemed
 dilutive:</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">680</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">189,374</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">184,554</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Earnings per share </p>
 </td>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.5pt'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:7.5pt'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:7.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4.97</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:7.5pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">205.84</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:7.5pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">173.10</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4.95</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">204.88</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">173.01</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">____________</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:13.5pt;margin-bottom:.0001pt;text-indent:-13.5pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp; </i><i>PLDT Group maintains its
accounts in Philippine peso.  For convenience, the peso financial information
as at and for the year ended December 31, 2007 has been translated into U.S.
dollars at the exchange rate of Php41.411 to US$1.00, the peso-dollar rate as
quoted through the Philippine Dealing System as at December 31, 2007.</i></p>

<p style='margin:0in;margin-bottom:.0001pt;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' style="margin-top:0;margin-bottom:0"><i>(2)    The dilutive effect of the outstanding options
is reflected as additional share dilution in the computation of earnings per
common share, see Note 7 &#150; Earnings per Common Share </i><i>to the accompanying audited consolidated financial
statements in Item 18 for further discussion.  </i></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.75in;margin-bottom:.0001pt;line-height:normal;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<b><br clear=all
style='page-break-before:always'>
</b>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">PHILIPPINE LONG DISTANCE
TELEPHONE COMPANY</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Computation
of Operating Income and Earnings Per Share</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>For the years 2003 through 2005</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Amounts in conformity with U.S. GAAP</i></b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0 align=left
   style='width:97.96%;border-collapse:collapse;margin-left:6.75pt;
 margin-right:6.75pt'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#F3F3F3;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=' border:none;border-top:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2003</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(in millions, except
 net operating income (loss) per common share)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1. Operating income per share</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.3in;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating income </p>
 </td>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php48,514</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php48,539</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php33,379</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deduct:  Dividends on preferred stock</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,677</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,764</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,739</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:49.5pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accretion of redemption value of  preferred
 stock subject to mandatory conversion</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,443</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,503</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,309</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.3in;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating income applicable to common
 shareholders</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php45,394</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php45,272</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php30,331</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <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=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.3in;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating income </p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php48,514</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php48,539</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php33,379</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deduct:  Dividends on preferred stock</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">70</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:45.0pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accretion of redemption value of
 preferred stock subject to mandatory conversion</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,746</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,309</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.3in;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Operating income applicable to common
 shareholders</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php46,698</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php48,490</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php32,021</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:12.6pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=top style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:31.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Weighted average number of common shares
 (in thousands)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;text-indent:9.9pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Outstanding common shares, beginning</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">170,214</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,476</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,361</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.3in;text-indent:5.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Effect of issuance of common shares
 during the year</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,855</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">252</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">172,069</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,728</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,413</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:12.6pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:31.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Weighted average number of common shares
 (in thousands)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;text-indent:9.9pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Outstanding common shares, beginning</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">170,214</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,476</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,361</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Effect of issuance of common shares during the year</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,855</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">252</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Weighted average number of shares under ESOP during
 the year(3)</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">94</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">155</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Common share equivalent of preferred shares deemed
 dilutive</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,858</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">22,381</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">24,222</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;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">183,021</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">192,264</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">193,635</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 height:6.75pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 height:6.75pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt;
 height:6.75pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;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>
 </tr>
 <tr style='page-break-inside:avoid;height:6.2pt'>
 <td   valign=top style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:6.2pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Operating income per share </p>
 </td>
 <td   valign=bottom style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:6.2pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt;height:6.2pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt;height:6.2pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php263.81</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php266.73</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php179.04</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">255.15</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:3.15pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">252.20</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">165.37</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>
 </td>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <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;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <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;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:5.75pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2. Earnings per share</b><b>(1)</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:31.5pt;text-indent:-.2in;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net income (loss) after cumulative
 effect of change in accounting policy</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php40,603</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php28,101</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php11,045</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deduct:  Dividends on preferred stock </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,677</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,764</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,739</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:40.5pt;text-indent:-22.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">               Accretion to redemption
 value of preferred stock<br>
 subject to mandatory conversion</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,443</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,503</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,309</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net income (loss) attributable  to common
 shareholders</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php37,483</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php24,834</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php7,997</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:12.6pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=bottom style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:31.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net income (loss) after cumulative
 effect of change in accounting policy</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php40,603</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php28,101</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php11,045</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deduct:  Dividends on preferred stock </p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">70</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">285</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,485</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:40.5pt;text-indent:-22.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">               Accretion to redemption
 value of preferred stock<br>
 subject to mandatory conversion</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,746</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,503</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,309</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:12.6pt;text-indent:5.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net income (loss) applicable to common
 shareholders</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php38,787</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php26,313</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php8,251</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:12.6pt;text-indent:-4.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:31.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Weighted average number of common shares
 (in thousands)</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:17.1pt;text-indent:9.9pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Outstanding common shares, beginning</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">170,214</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,476</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,361</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.3in;text-indent:5.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Effect of issuance of common shares
 during the year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,855</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">252</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">172,069</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,728</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,413</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=bottom style=' border:none;background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Weighted average number of common shares (in
 thousands)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Outstanding common shares, beginning</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">170,214</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,476</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">169,361</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Effect of issuance of common shares during the year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,855</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">252</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Weighted average number of shares under ESOP during
 the year(2)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">94</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">155</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:27.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Common share equivalent of preferred shares deemed
 dilutive:</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,858</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,213</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,069</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p style='text-indent:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">183,021</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">181,096</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#D9D9D9;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">180,482</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Earnings per share(1) </p>
 </td>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.7pt'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:11.7pt'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:11.7pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php217.84</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:11.7pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php146.32</p>
 </td>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt;height:11.7pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php47.20</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">211.93</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">145.30</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">45.72</p>
 </td>
 </tr>
</table></center></div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:13.7pt;text-indent:-13.7pt' style="margin-top:0;margin-bottom:0"><i>(1)    Our convertible preferred stocks were deemed
anti-dilutive for the year ended December 31, 2003.   Since the amount of
preferred dividends over the equivalent number of common stocks was greater
than the basic earnings per share, the amounts reported for the year ended
December 31, 2002 basic and diluted earnings per common share were the same.</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>(2)    The dilutive effect of the outstanding options
is reflected as additional share dilution in the computation of earnings per
common share, see Note 7 &#150; Earnings per Common Share </i><i>to the accompanying audited consolidated financial
statements in Item 18 for further discussion.  </i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<b><br clear=all
style='page-break-before:always'>
</b>

<p style='text-indent:5.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>EXHIBIT 7</b></p>

<p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>PHILIPPINE LONG DISTANCE TELEPHONE COMPANY</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Calculation of Ratio of Earnings to Fixed Charges</b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">For the years 2007 and
2006</p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0"><b><i>Amounts
in conformity with IFRS:</i></b></p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:95.14%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:white;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 background:white;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"><b>2007</b><b>(1)</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 background:white;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"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 background:white;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"><b>2006</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:white;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' background:white;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:.05in;text-align:center' style="margin-top:0;margin-bottom:0"><b>(in millions, except ratio of earnings (loss) to
 fixed charges)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:white;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:white;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">&nbsp;</p>
 </td>
 <td   valign=top style=' background:white;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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:white;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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">Earnings:</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">US$1,403</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php58,081</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php38,249</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:9.0pt;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Pre-tax income (loss)
 from continuing operations before adjustment for minority interest in
 consolidated subsidiaries or income or loss from equity investees
 subsidiaries</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">Add
 (Deduct):</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:9.0pt;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Fixed Charges (see b below)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">194</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">8,051</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">10,874</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:9.0pt;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Amortization of
 capitalized interest</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,559</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,490</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:9.0pt;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Capitalized interest</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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">(13)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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">(542)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;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">(549)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">Total Earnings(a)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">US$1,622</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php67,149</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php50,064</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Fixed Charges(b)</p>
 </td>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Interest
 on loans and related items</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">US$138</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php5,714</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php7,359</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Capitalized
 interest</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">542</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">549</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Amortization
 of debt issuance costs</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">21</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">874</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,214</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Estimated
 financing component of rent expense(3)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">22</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">921</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">752</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Total Fixed Charges</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">US$194</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php8,051</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php10,874</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Ratio (a/b) (2)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">8.3</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">8.3</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">4.6</p>
 </td>
 </tr>
</table></center></div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">For the years 2003 through
2005</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Amounts in conformity with U.S. GAAP</i></b></p>

<p style='line-height:8.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:95.16%;border-collapse:collapse'>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:5.75pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2005</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>2004</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>2003</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:white;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=top style=' background:white;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-right:.05in' style="margin-top:0;margin-bottom:0"><b>(in
 millions, except ratio of earnings (loss) to fixed charges)</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:white;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:white;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">&nbsp;</p>
 </td>
 <td   valign=top style=' background:white;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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:white;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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#D9D9D9;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">Earnings:</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php45,770</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php34,840</p>
 </td>
 <td   valign=top style=' background:#D9D9D9;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php9,820</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:9.0pt;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Pre-tax income (loss)
 from continuing operations before adjustment for minority interest in
 consolidated subsidiaries or income or loss from equity investees
 subsidiaries</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">Add
 (Deduct):</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:9.0pt;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Fixed Charges (see b
 below)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">11,273</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">13,479</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">13,644</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:9.0pt;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Amortization of
 capitalized interest</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,443</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,510</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,601</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
 margin-left:9.0pt;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Capitalized interest</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;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">(504)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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">(595)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;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">(887)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:
 normal' style="margin-top:0;margin-bottom:0">Total
 Earnings(a)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php57,982</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php49,234</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php24,178</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Fixed Charges(b)</p>
 </td>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Interest
 on loans and related items</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php9,615</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php11,115</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php11,434</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Capitalized
 interest</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">504</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">595</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">887</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Amortization
 of debt issuance costs</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">459</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,049</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">601</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <p style='margin-left:8.1pt' style="margin-top:0;margin-bottom:0">Estimated
 financing component of rent expense(3)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">695</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;
 height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">720</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">722</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Total Fixed Charges</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php11,273</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php13,479</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php13,644</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style="margin-top:0;margin-bottom:0">Ratio (a/b) (2)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5.1</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3.7</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1.8</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">_____________</p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:13.5pt;text-indent:-13.5pt;line-height:
9.0pt' style="margin-top:0;margin-bottom:0"><i>(1)&nbsp;&nbsp;&nbsp;
</i><i>PLDT Group maintains its
accounts in Philippine peso.  For convenience, the peso financial information
as at and for the year ended December 31, 2007 has been translated into U.S.
dollars at the exchange rate of Php41.411 to US$1.00, the peso-dollar rate as quoted
through the Philippine Dealing System as at December 31, 2007.</i></p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:13.5pt;text-indent:-13.5pt;line-height:
9.0pt' style="margin-top:0;margin-bottom:0"><i>(2)&nbsp;&nbsp;&nbsp;
</i><i>For purposes of this ratio,
&#147;Earnings&#148; consist of: (a) pre-tax income from continuing operations before
adjustment for minority interest in consolidated subsidiaries or income or loss
from equity investees, (b) fixed charges, (c) amortization of capitalized
interest, (d) distributed income of equity investees, and (e) share of pre-tax
losses of equity investees for which charges arising from guarantees are
included in fixed charges; less the sum of the following: (1) capitalized
interest, (2) preference security dividend requirements of consolidated
subsidiaries, and (3) the minority interest in pre-tax income of subsidiaries
that have not incurred fixed charges</i></p>

<p style='line-height:9.0pt' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:13.5pt;line-height:9.0pt' style="margin-top:0;margin-bottom:0"><i>&#147;Fixed charges&#148; consist of interest expensed and
capitalized interest, amortized premiums, discounts and capitalized expenses
related to indebtedness, an estimate of interest within rental expense, and
preference security dividend requirements of consolidated subsidiaries.</i></p>

<p style='line-height:50%' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:13.5pt;text-indent:-13.5pt;line-height:
9.0pt' style="margin-top:0;margin-bottom:0"><i>(3)&nbsp;&nbsp;&nbsp;
</i><i>Rent expense substantially
represents payments for the satellite circuits leased by PLDT.  Historically,
PLDT has been using one-third of rent expense as a reasonable estimate of the
financing component of rent expense, since it is impracticable to determine the
actual financing component of rent expense.</i></p>

<br clear=all
style='page-break-before:always'>

<p style='text-indent:409.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>EXHIBIT 8</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"><b>PHILIPPINE
LONG DISTANCE TELEPHONE COMPANY</b></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Subsidiaries
as at December 31, 2007</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-indent:-1.0in;line-height:7.0pt' 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:97.02%;margin-left:.25in;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;margin-right:0in;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.5pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;margin-right:0in;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Place of
 Incorporation </b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;margin-right:0in;
 margin-bottom:0in;margin-left:1.45pt;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=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.5pt;border-right:none;
 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>Percentage of
 Ownership</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 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"><b>Name of Subsidiary</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;margin-right:0in;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Principal Activity</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 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"><b>Direct</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.5pt;border-right:none;
 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>Indirect</b></p>
 </td>
 </tr>
 <tr style='height:5.0pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:5.0pt'>
 <p style='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:5.0pt'>
 <p style='margin-left:1.45pt;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:5.0pt'>
 <p style='margin-left:1.45pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:5.0pt'>
 <p align=right style='margin-right:.1in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>

 <tr style='height:16.2pt'>
 <td   colspan=5 valign=bottom style=' padding:0in 0in 0in 0in;
 height:16.2pt'>
 <p style='margin-top:1.0pt;margin-right:.1in;margin-bottom:
 1.0pt;margin-left:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Wireless</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;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=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' 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:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;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:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart Braodband Inc., or SBI</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Internet broadband distribution</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smartconnect
 Holdings Pte. Ltd., or SCH</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Singapore</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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">International trade of satellites and global
 system mobile, or GSM, telecommunications</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">I-Contacts
 Corporation, or I-Contacts</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Customer interaction services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Wolfpac
 Mobile, Inc., or Wolfpac </p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Mobile applications development and services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smartconnect
 Global Pte. Ltd., or SGP</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Singapore</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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">International trade of satellites and GSM
 telecommunications</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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:27.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3rd Brand Pte. Ltd., or 3rd Brand</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Singapore</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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Solutions and systems integration services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">85.0</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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Wireless
 Card, Inc., or WCI</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Promotion of sale and/or patronage of debit
 and/or charge cards</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart
 Hub, Incorporated, or SHI</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Development and sale of software, maintenance
 and support services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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:27.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Pilipino Telephone Corporation, or Piltel</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cellular and fixed line services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Telesat, Inc., or Telesat</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Philippines</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;page-break-after:avoid' 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:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;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 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.25in;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">ACeS Philippines Cellular Satellite <br>
 Corporation, or ACeS Philippines</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Satellite information and messaging services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">88.5</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">11.5</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 align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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 communications services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">67.0</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:8.1pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <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:8.1pt'>
 <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:8.1pt'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:0in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:8.1pt'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:0in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:16.2pt'>
 <td   colspan=5 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>Fixed Line</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 ClarkTel</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Telecommunications services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-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
 Subic Telecom, Inc., or SubicTel</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Telecommunications
 services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-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 PLDT Global</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">British Virgin Islands</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:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-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 align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">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:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-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 align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</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:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">97.5</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-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, <br>
 or BCC</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Telecommunications,
 infrastructure <br>
 and related value-added services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">75.0</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</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=top 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 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=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:0in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:.1in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:0in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:16.2pt'>
 <td   colspan=5 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>Information and
 Communications Technology, or ICT</b></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">ePLDT,
 Inc., or ePLDT</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</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">Information
 and communications infrastructure for Internet-based services, e-commerce,
 cusomter interaction service and IT-related services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">SPi
 Technologies, Inc., or SPi, and subsidiaries, <br>
 or SPi Group</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Knowledge
 processing solutions</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 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:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">ePLDT
 Ventus, Inc., or Ventus</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Customer
 interaction services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 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:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Vocativ
 Systems, Inc., or Vocativ</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Customer
 interaction services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 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:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Parlance
 Systems, Inc., or Parlance</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Customer
 interaction services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 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:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Infocom
 Technologies, Inc., or Infocom</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Internet
 access services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">99.6</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:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">netGames,
 Inc., or netGames</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Publisher
 of online games</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">80.0</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:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Digital
 Paradise, Inc., or Digital Paradise</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Internet
 access services</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">75.0</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:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Level
 Up! (Philippines), Inc., or Level Up!</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">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">Publisher
 of online games</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;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-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">60.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Airborne
 Access Corporation, or <br>
 Airborne Access</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.5pt;
 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">Wireless
 internet services</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">51.0</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.0in;
margin-bottom:.0001pt;text-indent:-1.0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<br
clear=all style='page-break-before:always'>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>Exhibit 12.1</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0"><a name="_Toc170286209"></a><a
name="_Toc75779268">CERTIFICATION</a></h1>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;
margin-left:0in;line-height:normal' style="margin-top:0;margin-bottom:0">I, Napoleon L. Nazareno, certify that:</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
I have reviewed this annual report
on Form 20-F of Philippine Long Distance Telephone Company (the &#147;Company&#148;);</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on my knowledge, this report
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with
respect to the period covered by this report;</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on my knowledge, the
financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of
operations and cash flows of the Company as of, and for, the periods presented
in this report;</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s other certifying
officer(s) and I are responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and
have:</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(a)&nbsp;&nbsp;&nbsp;&nbsp;
Designed such disclosure controls
and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to
the Company, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this
report is being prepared;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(b)&nbsp;&nbsp;&nbsp;&nbsp;
Designed such internal control
over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally
accepted accounting principles;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(c)&nbsp;&nbsp;&nbsp;&nbsp;
Evaluated the effectiveness of the
Company&#146;s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures,
as of the end of the period covered by this report based on such evaluation;
and</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(d)&nbsp;&nbsp;&nbsp;&nbsp;
Disclosed in this report any
change in the Company&#146;s internal control over financial reporting that occurred
during the period covered by the annual report that has materially affected, or
is reasonably likely to materially affect, the Company&#146;s internal control over
financial reporting; and</p>

<p style='margin-left:.75in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s other certifying officer(s)
and I have disclosed, based on our most recent evaluation of internal control
over financial reporting, to the Company&#146;s auditors and the audit committee of
the Company&#146;s board of directors (or persons performing the equivalent
functions):</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(a)&nbsp;&nbsp;&nbsp;&nbsp;
All significant deficiencies and
material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the Company&#146;s
ability to record, process, summarize and report financial information; and</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:7.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(b)&nbsp;&nbsp;&nbsp;&nbsp;
Any fraud, whether or not
material, that involves management or other employees who have a significant
role in the Company&#146;s internal control over financial reporting.</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">Date:  April 9, 2008</p>

<p style='margin-left:.5in;text-indent:-.25in;line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='margin-left:288.9pt;border-collapse:collapse'>
 <tr>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='margin-right:.05in;text-align:center' style="margin-top:0;margin-bottom:0">/s/  Napoleon L. Nazareno</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Napoleon L. Nazareno</p>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">President and Chief Executive Officer</p>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(Principal Executive Officer)</p>
 </td>
 </tr>
</table></center></div>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<b><br clear=all
style='page-break-before:always'>
</b>

<p style='margin-left:22.3pt;text-indent:355.7pt' style="margin-top:0;margin-bottom:0"><b>Exhibit 12.2</b></p>

<p align=center style='margin-left:22.3pt;text-align:center;
text-indent:-22.3pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=center style='margin-left:22.3pt;text-align:center;
text-indent:-22.3pt' style="margin-top:0;margin-bottom:0"><b>CERTIFICATION</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-bottom:12.0pt' style="margin-top:0;margin-bottom:0">I,
Anabelle L. Chua, certify that:</p>

<p style='margin-left:.75in;text-indent:-.5in' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
I have reviewed this annual report
on Form 20-F of Philippine Long Distance Telephone Company (the &#147;Company&#148;);</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on my knowledge, this report
does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with
respect to the period covered by this report;</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on my knowledge, the
financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of
operations and cash flows of the Company as of, and for, the periods presented
in this report;</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s other certifying
officer(s) and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over
financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(a)   Designed such disclosure controls and
procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the
Company, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this report is
being prepared;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(b)   Designed such internal control over financial
reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting
principles; </p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(c)   Evaluated the effectiveness of the Company&#146;s
disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the
end of the period covered by this report based on such evaluation; and</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(d)   Disclosed in this report any change in the
Company&#146;s internal control over financial reporting that occurred during the
period covered by the annual report that has materially affected, or is
reasonably likely to materially affect, the Company&#146;s internal control over
financial reporting; and</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">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&#146;s other certifying
officer(s) and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the Company&#146;s auditors and the
audit committee of the Company&#146;s board of directors (or persons performing the
equivalent functions):</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(a)   All significant deficiencies and material
weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the Company&#146;s ability
to record, process, summarize and report financial information; and</p>

<p style='line-height:8.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">(b)   Any fraud, whether or not material, that
involves management or other employees who have a significant role in the
Company&#146;s internal control over financial reporting.</p>

<p style='line-height:10.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">Date:
April 9, 2008</p>

<p style='margin:0in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='margin-left:297.9pt;border-collapse:collapse'>
 <tr>
 <td  valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">/s/  Anabelle L. Chua</p>
 </td>
 </tr>
 <tr style='height:38.65pt'>
 <td  valign=top style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 height:38.65pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Anabelle L. Chua</p>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Senior Vice President and Treasurer</p>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(Principal Financial Officer)</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:382.5pt' style="margin-top:0;margin-bottom:0"><a name=node35></a><b>&nbsp;</b></p>

<b><br clear=all
style='page-break-before:always'>
</b>

<p style='text-indent:5.25in' style="margin-top:0;margin-bottom:0"><b>Exhibit
13.1</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=center style='margin-left:22.5pt;text-align:center;
text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>CERTIFICATION</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=left style='margin-right:.25in;text-align:left;
text-indent:27.0pt' style="margin-top:0;margin-bottom:0">Pursuant to 18 U.S.C. &#167;
1350, I, Napoleon L. Nazareno, President and Chief Executive Officer of
Philippine Long Distance Telephone Company, hereby certify, to my knowledge,
that our annual report on Form 20-F for the year ended December 31, 2007 (the &#147;Report&#148;)
fully complies with the requirements of Section 13(a) or 15(d), as applicable,
of the Securities Exchange Act of 1934, and that the information contained in
the Report fairly presents, in all material respects, our financial condition
and results of operations.</p>

<p align=left style='text-align:left;text-indent:24.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:24.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">Date:  April 9, 2008</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='margin-left:31.9pt;border-collapse:collapse'>
 <tr>
 <td  valign=bottom style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">/s/  Napoleon L. Nazareno</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Napoleon L. Nazareno</p>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">President and Chief Executive Officer</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(Principal Executive Officer)</p>
 </td>
 </tr>
</table></center></div>

<p align=left style='margin-top:24.0pt;text-align:left;
text-indent:27.0pt' style="margin-top:0;margin-bottom:0">The foregoing
certification is being furnished solely pursuant to 18 U.S.C. &#167; 1350 and is not
being filed as part of the Report or as a separate disclosure document.</p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"> </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<br
clear=all style='page-break-before:always'>

<p style='margin-left:22.5pt;text-indent:346.5pt' style="margin-top:0;margin-bottom:0"><b>Exhibit 13.2</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=center style='margin-left:22.5pt;text-align:center;
text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>CERTIFICATION</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:22.5pt;text-indent:-22.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p align=left style='margin-right:27.0pt;text-align:left;
text-indent:27.0pt' style="margin-top:0;margin-bottom:0">Pursuant to 18 U.S.C. &#167;
1350, I, Anabelle L. Chua, Senior Vice President and Treasurer of Philippine
Long Distance Telephone Company, hereby certify, to my knowledge, that our
annual report on Form 20-F for the year ended December 31, 2007 (the &#147;Report&#148;)
fully complies with the requirements of Section 13(a) or 15(d), as applicable,
of the Securities Exchange Act of 1934, and that the information contained in
the Report fairly presents, in all material respects, our financial condition
and results of operations.</p>

<p align=left style='text-align:left;text-indent:24.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:24.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left' style="margin-top:0;margin-bottom:0">Date:  April 9, 2008</p>

<p align=left style='text-align:left;text-indent:24.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;text-indent:24.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
 <td  valign=bottom style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">/s/  Anabelle L. Chua</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' border:none;padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Anabelle L. Chua</p>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">Senior Vice President and Treasurer</p>
 </td>
 </tr>
 <tr>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=top style=' padding:2.9pt 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">(Principal Financial Officer)</p>
 </td>
 </tr>
</table></center></div>

<p align=left style='margin-top:24.0pt;text-align:left;
text-indent:27.0pt' style="margin-top:0;margin-bottom:0">The foregoing
certification is being furnished solely pursuant to 18 U.S.C. &#167; 1350 and is not
being filed as part of the Report or as a separate disclosure document.</p>

<b><br clear=all
style='page-break-before:always'>
</b>

<p align=left style=';text-align:left' style="margin-top:0;margin-bottom:0">Report of Independent Registered Public Accounting
Firm</p>

<p align=left style=';text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style=';text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style=';text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;line-height:normal' style="margin-top:0;margin-bottom:0">The Board of Directors and the
Stockholders</p>

<p align=left style='text-align:left;line-height:normal' style="margin-top:0;margin-bottom:0">Philippine Long Distance Telephone
Company</p>

<p align=left style='text-align:left;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;line-height:normal' style="margin-top:0;margin-bottom:0">We have audited
Philippine Long Distance Telephone Company and subsidiaries&#146; (the &#147;PLDT Group&#148;)
internal control over financial reporting as of December 31, 2007, based on criteria
established in Internal Control - Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission (the COSO criteria).
The PLDT Group&#146;s management is responsible for maintaining effective internal
control over financial reporting, and for its assessment of the effectiveness
of internal control over financial reporting included in the accompanying
Management&#146;s Annual Report on Internal Control over Financial Reporting.  Our
responsibility is to express an opinion on the PLDT Group&#146;s internal control
over financial reporting based on our audit. </p>

<p align=left style='text-align:left;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;line-height:normal' style="margin-top:0;margin-bottom:0">We conducted our audit
in accordance with the standards of the Public Company Accounting Oversight
Board (United States).  Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control
over financial reporting was maintained in all material respects.  Our audit
included obtaining an understanding of internal control over financial
reporting, assessing the risk that a material weakness exists, testing and
evaluating the design and operating effectiveness of internal control based on
the assessed risk, and performing such other procedures as we considered
necessary in the circumstances.  We believe that our audit provides a reasonable
basis for our opinion.</p>

<p align=left style='text-align:left;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;line-height:normal' style="margin-top:0;margin-bottom:0">A company&#146;s internal
control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally
accepted accounting principles.  A company&#146;s internal control over financial
reporting includes those policies and procedures that: (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company; (2)
provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authorizations of management and
directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition
of the company&#146;s assets that could have a material effect on the financial
statements.</p>

<p align=left style='text-align:left;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Because of its inherent
limitations, internal control over financial reporting may not prevent or
detect misstatements.  Also, projections of any evaluation of effectiveness to
future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.</p>

<p align=left style='text-align:left;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In our opinion, the PLDT
Group maintained, in all material respects, effective internal control over
financial reporting as of December 31, 2007, based on<b> </b>the COSO criteria<b>.</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We
also have audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States), the consolidated balance sheets of
the PLDT Group as of December 31, 2007 and 2006, and the related consolidated
statements of income, changes in equity, and cash flows for the years then
ended in accordance with International Financial Reporting Standards as issued
by the International Accounting Standards Board, and our report dated April 3,
2008 expressed an unqualified opinion thereon.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;line-height:normal;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;line-height:normal;
page-break-after:avoid;background:white' style="margin-top:0;margin-bottom:0"><u>&nbsp;</u></p>

<p align=left style='text-align:left;line-height:normal;
background:white' style="margin-top:0;margin-bottom:0"><u>/s/SyCip Gorres Velayo &amp; Co.</u></p>

<p style="margin-top:0;margin-bottom:0">Makati City, Philippines</p>

<p style="margin-top:0;margin-bottom:0">April 3, 2008</p>

<br clear=all
style='page-break-before:always'>

<p style="margin-top:0;margin-bottom:0"><b>Report of Independent Registered Public Accounting Firm</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The Stockholders and the Board of Directors</p>

<p style="margin-top:0;margin-bottom:0">Philippine Long Distance Telephone Company</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We have audited the accompanying consolidated balance sheets
of Philippine Long Distance Telephone Company and subsidiaries (the &#147;PLDT
Group&#148;) as of December 31, 2007 and 2006, and the related consolidated
statements of income, statements of equity, and cash flows for each of the two
years in the period ended December 31, 2007.  These financial statements are
the responsibility of the PLDT Group&#146;s management.  Our responsibility is to
express an opinion on these financial statements based on our audits.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We conducted our audits in accordance with the standards of
the Public Company Accounting Oversight Board (United States).  Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements.  An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.  We believe
that our audits provide a reasonable basis for our opinion.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In our opinion, the financial statements referred to above
present fairly, in all material respects, the consolidated financial position
of the PLDT Group at December 31, 2007 and 2006, and the consolidated results
of their operations and their cash flows for each of the two years in the
period ended December 31, 2007, in conformity with International Financial
Reporting Standards as issued by the International Accounting Standards Board.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We also have audited, in accordance with the standards of
the Public Company Accounting Oversight Board (United States), the PLDT Group&#146;s
internal control over financial reporting as of December 31, 2007, based on
criteria established in Internal Control-Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission and our report
dated April 3, 2008 expressed an unqualified opinion thereon.</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>&nbsp;</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>&nbsp;</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='text-align:left;line-height:normal;
background:white' style="margin-top:0;margin-bottom:0"><u>/s/SyCip Gorres Velayo &amp; Co.</u></p>

<p style="margin-top:0;margin-bottom:0">Makati
 City, Philippines</p>

<p style="margin-top:0;margin-bottom:0">April 3,
2008</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<br clear=all
style='page-break-before:always'>

<div>

<p style="margin-top:0;margin-bottom:0">&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">&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 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>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><a name="OLE_LINK81"></a><a
name="OLE_LINK80"><b>PHILIPPINE LONG DISTANCE
TELEPHONE COMPANY AND SUBSIDIARIES</b></a></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 AND FOR THE
YEARS ENDED DECEMBER 31, 2007 AND 2006</p>

<p align=center style=';text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style=';text-align:center' style="margin-top:0;margin-bottom:0">AND</p>

<p align=center style=';text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=center style=';text-align:center' style="margin-top:0;margin-bottom:0">INDEPENDENT
AUDITORS&#146; REPORT</p>

<p align=center style=';text-align:center' 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>December 31, 2007
and 2006</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>(in million pesos,
except par value, per share amounts and number of shares)</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;width:100.66% !msorm;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid;height:6.6pt' style='page-break-inside:
 avoid !msorm;height:6.6pt !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:6.6pt'>
 <p style='margin-top:2.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:6.6pt'>
 <p align=right style='margin-top:2.0pt;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>2007</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:6.6pt'>
 <p align=right style='margin-top:2.0pt;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;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:6.6pt'>
 <p align=right style='margin-top:2.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid;height:17.05pt'>
 <td   colspan=4 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Property, plant and equipment - net (Notes 2, 3, 5, 8, 18
 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>159,414</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">164,190</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Investments in associates and joint ventures (Notes 2, 9,
 18 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,351</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">636</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Investments-available-for-sale (Notes 2 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>143</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">116</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Investment in debt securities (Notes 2 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>273</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Investment properties (Notes 2, 3, 10 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>577</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">587</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Goodwill and intangible assets - net (Notes 2, 3, 5, 11
 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>11,721</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,214</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Deferred income tax assets (Notes 2, 3, 4, 6 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>13,757</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20,538</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Derivative <a name="OLE_LINK90"></a><a name="OLE_LINK73">financial
 </a>assets (Notes 2 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>59</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">434</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Prepayments - net of current portion (Notes 16 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,281</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,368</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Advances and refundable deposits - net of current portion (Notes
 2 and 26)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,030</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,066</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.05pt'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:11.05pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Total Noncurrent Assets </p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;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>190,606</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 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;background:
 #F3F3F3;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">201,149</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:15.7pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;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;background:#E0E0E0;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;
 background:#E0E0E0;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;
 background:#E0E0E0;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=' background:#F3F3F3;
 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, 12 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>17,447</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,870</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Short-term investments (Notes 2 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>13,415</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,327</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Investment in debt securities (Notes 2, 13 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,115</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Trade and other receivables - net (Notes 2, 3, 14, 22 and
 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>12,645</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,158</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Inventories and supplies (Notes 2, 15 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,167</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,230</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.0pt'>
 <p style="margin-top:0;margin-bottom:0">Derivative financial assets (Notes 2 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>897</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:3.0pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.0pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">47</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Current portion of prepayments (Notes 16 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,368</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,967</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Current portion of advances and refundable deposits (Notes
 2 and 26)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>498</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">156</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 10.75pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Total Current
 Assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;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>49,552</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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;background:#F3F3F3;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">40,755</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:14.35pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:14.35pt'>
 <p style="margin-top:0;margin-bottom:0"><b>TOTAL ASSETS</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;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>240,158</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;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=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;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">241,904</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.85pt' style='page-break-inside:
 avoid !msorm;height:11.85pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;border-bottom:
 solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;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;border:none !msorm;border-bottom:
 solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;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;border:none !msorm;border-bottom:
 solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;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;border:none !msorm;border-bottom:
 solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;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"><b><u>EQUITY AND LIABILITIES</u></b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.3in'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.3in'>
 <p style="margin-top:0;margin-bottom:0"><b>Equity</b><b> Attributable to Equity Holders of PLDT </b>(Notes
 2, 7 and 17)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#F3F3F3;
 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;
 <br>
 issued and outstanding - 441,650,297 shares as at
 December 31, 2007 and <br>
 442,375,057 shares as at December 31, 2006</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,417</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;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">4,424</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.7pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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; <br>
 issued and outstanding - 188,740,519 shares as at
 December 31, 2007 and <br>
 188,434,695 shares as at December 31, 2006</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>943</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">942</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.5pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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 23)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>9</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">40</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.5pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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 18)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>6</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">9</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.5pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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>67,057</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">66,574</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.5pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.5pt'>
 <p style="margin-top:0;margin-bottom:0">Retained earnings (Note 7)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>39,894</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">29,361</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.5pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:4.5pt'>
 <p style="margin-top:0;margin-bottom:0">Cumulative translation adjustments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>(1,383)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">(37)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.05pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.05pt'>
 <p style="margin-top:0;margin-bottom:0">     Total Equity Attributable
 to Equity Holders of PLDT</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;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>110,943</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 background:#E0E0E0;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;background:#E0E0E0;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">101,313</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:12.6pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 12.6pt'>
 <p style="margin-top:0;margin-bottom:0"><b>Minority interest</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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>1,402</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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;background:#F3F3F3;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">1,540</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 6.75pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Total Equity</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;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>112,345</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;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;background:#E0E0E0;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">102,853</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 align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>December 31, 2007
and 2006</b></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, per share amounts and number of
shares)</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.66%;border-collapse:collapse;width:100.66% !msorm;border-collapse:
 collapse !msorm'>
 <tr style='page-break-inside:avoid;height:10.2pt' style='page-break-inside:
 avoid !msorm;height:10.2pt !msorm'>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm;height:10.2pt'>
 <p style='margin-top:2.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:10.2pt'>
 <p align=right style='margin-top:2.0pt;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>2007</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:10.2pt'>
 <p align=right style='margin-top:2.0pt;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=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:10.2pt'>
 <p align=right style='margin-top:2.0pt;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">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:16.6pt'>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 background:#E0E0E0;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;background:
 #E0E0E0;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;background:#E0E0E0;
 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;background:#E0E0E0;
 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=' background:#F3F3F3;
 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, 18, 24 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>53,387</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">65,244</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.5pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.5pt'>
 <p style="margin-top:0;margin-bottom:0">Deferred income tax liabilities (Notes 2, 3, 4, 6 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>2,066</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">402</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.65pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.65pt'>
 <p style="margin-top:0;margin-bottom:0">Derivative financial liabilities (Notes 2, 24 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>7,741</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">6,872</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.1in'>
 <td   valign=bottom style=' background:#E0E0E0;
 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 employee benefits (Notes 2, 3, 23 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>4,540</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">2,982</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.55pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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 (Notes 24 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>2,201</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">2,204</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.55pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Deferred credits
 and other noncurrent liabilities (Notes 2, 3, 8, 11, 14, 19 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>9,632</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">8,503</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;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:12.1pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Total Noncurrent
 Liabilities</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;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>79,567</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;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;
 background:#F3F3F3;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">86,207</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:15.85pt'>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 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;background:
 #E0E0E0;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;background:#E0E0E0;
 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;background:#E0E0E0;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style="margin-top:0;margin-bottom:0">Accounts payable (Notes 2, 20, 22, 25 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>12,253</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">8,634</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.1in'>
 <td   valign=bottom style=' background:#E0E0E0;
 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 <br>
 (Notes 2, 3, 11, 18, 21, 22, 23, 24, 25 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>21,929</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">23,135</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:5.85pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p style="margin-top:0;margin-bottom:0">Derivative financial liabilities (Notes 2,
 24 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>242</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">108</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:5.85pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">Provisions
 for assessments (Notes 2, 22, 24, 25 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>1,112</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">446</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:5.85pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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, 18, 24 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>8,764</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">17,309</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.05pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.05pt'>
 <p style="margin-top:0;margin-bottom:0">Dividends payable (Notes 2, 7, 18, 24 and
 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>1,071</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">774</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.1pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style="margin-top:0;margin-bottom:0">Income tax payable (Notes 2, 6 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>2,875</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">2,438</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Total Current
 Liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;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>48,246</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 background:#E0E0E0;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;background:#E0E0E0;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">52,844</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:15.7pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:15.7pt'>
 <p style="margin-top:0;margin-bottom:0"><a name="OLE_LINK92"></a><a name="OLE_LINK91"><b>TOTAL
 EQUITY AND LIABILITIES</b></a></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#F3F3F3;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>240,158</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#F3F3F3;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=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;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">241,904</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
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;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>For
the Years Ended December 31, 2007 and 2006</b></p>

<p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(in
million pesos, except earnings per common share amounts)</b></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:100.74%;border-collapse:collapse;width:100.74% !msorm;border-collapse:
 collapse !msorm'>
 <tr style='page-break-inside:avoid;height:9.0pt' style='page-break-inside:
 avoid !msorm;height:9.0pt !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;border-top:
 solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;height:9.0pt'>
 <p align=right style='margin-top:2.0pt;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 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:9.0pt'>
 <p align=center style='margin-top:2.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:9.0pt'>
 <p align=center style='margin-top:2.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:16.2pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 16.2pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>REVENUES</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;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=' border:none;background:#E0E0E0;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Service revenues (Notes 2, 3 and 4)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>135,476</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">124,987</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Foreign exchange gains &#150; net</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>7,990</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,823</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Non-service revenues (Notes
 2, 3, 4 and 5)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,226</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,520</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest income</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,503</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,654</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Other income (Notes 2, 3 and 4)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,667</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,740</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>151,862</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">139,724</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:14.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:14.35pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>EXPENSES</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Depreciation and
 amortization (Notes 3, 4 and 8)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>28,613</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31,869</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Compensation and employee benefits
 (Notes 3, 5 and 23)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>20,470</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18,359</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Repairs and maintenance
 (Note 22)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>7,310</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,886</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Financing costs &#150; net (Notes
 2, 5, 8, 18 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>7,088</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,854</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Selling and promotions</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>5,824</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,010</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Professional and other contracted services (Notes 5 and 22)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,719</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,098</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost of sales (Notes 5, 22
 and 24)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,844</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,522</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Losses on derivative
 financial instruments &#150; net</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,849</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,304</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Rent (Note 24)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,762</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,257</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Taxes and licenses (Note 25)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,319</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,747</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Communication, training and
 travel</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,850</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,481</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asset impairment (Notes 3,
 5, 8, 9 and 11)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,317</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,766</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Insurance and security
 services (Note 22)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,197</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,255</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provisions (Notes 3, 4, 14,
 15, 22, 24 and 25)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>666</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Amortization of intangible
 assets (Notes 3 and 11)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>390</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">450</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Equity share in net losses
 of associates</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>11</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">52</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other expenses (Note 22)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,552</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,527</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.6pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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;background:#F3F3F3;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>93,781</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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">101,475</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-top: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;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>58,081</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">38,249</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.95pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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, 3, 4 and 6)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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>18,807</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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">5,668</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.95pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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 YEAR</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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>39,274</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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">32,581</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-top: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;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:2.9pt;
 margin-bottom:0in;margin-left:.35pt;margin-bottom:.0001pt;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;background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:.05pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Equity holders of PLDT (Note 7)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>39,289</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">32,385</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;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;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(15)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">196</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.45pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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;background:#E0E0E0;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>39,274</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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">32,581</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.45pt'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;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;background:
 #F3F3F3;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;background:#F3F3F3;
 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>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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>205.84</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">173.10</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:.1in'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;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;background:#F3F3F3;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>204.88</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;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">173.01</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> 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>For the Years Ended December 31, 2007 and 2006</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<br>
 (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='height:1.8pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:1.8pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=10 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:1.8pt'>
 <p align=center style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>
 <tr style='height:4.95pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balances
 at January 1, 2006</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:13.5pt;text-indent:-4.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Equity under U.S. GAAP</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,433</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">904</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">78,873</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(5,288)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">673</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">79,595</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">79,595</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:13.5pt;text-indent:-4.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Reconciliation adjustments from U.S. GAAP to IFRS
 (Note 2)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">67</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(24,955)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,179</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(169)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(7,829)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,162</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,667)</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:13.5pt;text-indent:-4.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Equity under IFRS (Note 2)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,433</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">904</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">67</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">53,918</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,891</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">504</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">71,766</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,162</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">72,928</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Changes
 in equity:</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:13.5pt;text-indent:-4.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net income under U.S. GAAP</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">33,597</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">33,597</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">33,597</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:13.5pt;text-indent:-4.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Reconciliation adjustments from USGAAP to IFRS (Note
 2)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,212<b>)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,212)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">196</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,016)</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:13.5pt;text-indent:-4.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net income under IFRS (Note 2)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">32,385</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">32,385</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">196</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">32,581</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Currency
 translation differences</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(546)</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(546)</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(45)</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(591)</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:.25in;text-indent:-4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net gains on available-for-sale financial investments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:13.5pt;text-indent:-4.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total income and expense for the year recognized
 directly in equity</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' 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;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(541)</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(541)</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(45)</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(586)</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:9.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total income and expense for the year</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>32,385</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(541)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>31,844</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>151</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>31,995</b></p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:9.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Cash dividends (Note 7)</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(14,915)</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(14,915)</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(14,915)</b></p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:9.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Issuance of capital stock - <br>
 net of conversion (Note 17)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(9)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>38</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(40)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>12,567</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>12,556</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>12,556</b></p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:9.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Exercised option shares</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(</b><b>27)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>89</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>62</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>62</b></p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:9.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Minority interest</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>227</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>227</b></p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:9.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Balances at December 31, 2006</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,424</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>942</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>40</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>66,574</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>29,361</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(37)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>101,313</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,540</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>102,853</b></p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:9.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;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:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:9.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balances at January 1, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:18.4pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Equity under U.S. GAAP</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,424</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">942</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">91,479</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,498</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3,170)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">106,173</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">106,173</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:13.5pt;text-indent:-4.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Reconciliation adjustments from U.S. GAAP to IFRS
 (Note 2)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">40</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(24,905)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,863</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,133</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(4,860)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,540</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3,320)</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:18.4pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Equity under IFRS (Note 2)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,424</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">942</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">40</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">66,574</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">29,361</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(37)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">101,313</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,540</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">102,853</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Changes
 in equity:</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:18.4pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net income under IFRS</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">39,289</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">39,289</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(15)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">39,274</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:.25in;text-indent:-4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deferred income tax effects on <br>
 cash flow hedges</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(256)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(256)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.4pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(256)</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:.25in;text-indent:-4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Currency translation differences</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,782)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,782)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(67)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,849)</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:.25in;text-indent:-4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net gains on available-for-sale financial investments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:.25in;text-indent:-4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net gains on cash flow hedges</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">662</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">662</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">662</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:18.4pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total income and expense for the year recognized
 directly in equity</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,346)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,346)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(67)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,413)</p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:9.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total income and expense for the year</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>39,289</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(1,346)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>37,943</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(82)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>37,861</b></p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:9.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Cash dividends (Note 7)</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(28,756)</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(28,756)</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(12)</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(28,768)</b></p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:9.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Issuance of capital stock - <br>
 net of conversion (Note 17)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(7)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(3)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>379</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>370</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>370</b></p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:9.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Exercised option shares</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(31)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>104</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>73</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>73</b></p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:9.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Minority interest</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>(44)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>(44)</b></p>
 </td>
 </tr>
 <tr style='height:8.55pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p style='margin-top:.8pt;margin-right:0in;margin-bottom:
 .8pt;margin-left:9.0pt;text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Balances at December 31, 2007</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,417</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>943</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;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:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>67,057</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>39,894</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:0in;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(1,383)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>110,943</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,402</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:8.55pt'>
 <p align=right style='margin-top:.8pt;margin-right:2.15pt;
 margin-bottom:.8pt;margin-left:0in;text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>112,345</b></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
Consolidated Financial Statements.</i><i><br
clear=all style='page-break-before:always'>
</i><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>For the Years
Ended December 31, 2007 and 2006</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>(in million pesos)</b></p>

<p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.74%;border-collapse:collapse;width:100.74% !msorm;border-collapse:
 collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-top:2.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:2.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:2.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid;height:12.1pt'>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 background:#E0E0E0;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=' border:none;background:
 #E0E0E0;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=' border:none;background:#E0E0E0;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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>58,081</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">38,249</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Depreciation
 and amortization (Notes 3, 4 and 8)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>28,613</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">31,869</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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 &#150; net (Note 5)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>5,714</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">7,359</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Losses
 on derivative transactions &#150; net (Notes 5 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>2,849</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">8,304</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Pension
 (Notes 3, 5 and 23)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>1,773</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Incentive
 plans (Notes 3, 5 and 23)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>1,448</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">3,150</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Asset
 impairment (Notes 3, 5, 14, 15 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>1,317</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">2,766</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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 &#150; net (Notes 5 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>1,161</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">3,314</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Amortization
 of intangible assets (Note 11)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>390</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">450</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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>17</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">130</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Equity
 share in net losses of associates (Note 4)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>11</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">52</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Loss
 (gain) on disposal of fixed assets (Note 8)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(527)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(158)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,503)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,654)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Foreign exchange gains &#150; net (Notes 5, 18 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(7,990)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(4,823)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Gain
 on reversal of provision for onerous contracts (Note 25)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(3,529)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:4.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,242)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:4.35pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(895)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 background:#E0E0E0;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 changes in assets and
 liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;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>90,112</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;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">85,587</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(3,266)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,187)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(76)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">343</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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>1,862</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,513)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Advances
 and refundable deposits</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(307)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">1,329</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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>4,763</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(9,254)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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>4,223</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,590</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(665)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">969</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Pension
 and other employee benefits</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(6,649)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(435)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Customers&#146;
 deposits</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>12</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Other
 noncurrent liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,167)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">43</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.0pt;
 background:#F3F3F3;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;background:#F3F3F3;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>88,842</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#F3F3F3;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">77,478</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;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;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(11,424)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(8,267)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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;background:#F3F3F3;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>77,418</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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">69,211</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 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;background:
 #E0E0E0;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;background:
 #E0E0E0;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:9.45pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style="margin-top:0;margin-bottom:0">Proceeds from maturity of
 short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>15,935</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">658</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style="margin-top:0;margin-bottom:0">Interest received</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>1,218</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,481</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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 (Note 8)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>953</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">694</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style="margin-top:0;margin-bottom:0">Proceeds from disposal of
 investment properties</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>10</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">72</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style="margin-top:0;margin-bottom:0">Proceeds from disposal of
 investments-held-for-sale</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>7</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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:9.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style="margin-top:0;margin-bottom:0">Payments for acquisition of
 intangibles (Note 11)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(213)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style="margin-top:0;margin-bottom:0">Payments for purchase of investment
 in debt securities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(264)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style="margin-top:0;margin-bottom:0">Increase in advances and
 refundable deposits</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(424)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,054)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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 &#150; capitalized to property, plant and
 equipment (Notes 5 and 8)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(542)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(549)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style="margin-top:0;margin-bottom:0">Payments for purchase of
 investment in associates</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(601)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(636)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style="margin-top:0;margin-bottom:0"><a name="OLE_LINK102"></a><a name="OLE_LINK101">Payments for purchase of investments &#150; net of cash
 acquired </a>(Note 11)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,687)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(10,254)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style="margin-top:0;margin-bottom:0">Additions to short-term
 investments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(21,429)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6,166)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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 (Note 8)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(24,282)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(20,125)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.75pt'>
 <p style="margin-top:0;margin-bottom:0">Proceeds from collection of notes
 receivable</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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">89</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;
 background:#F3F3F3;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;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(31,319)</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:7.75pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(35,790)</p>
 </td>
 </tr>
</table></center></div>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<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 align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>For the Years
Ended December 31, 2007 and 2006</b></p>

<p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>(in million pesos)</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:100.0%;border-collapse:collapse;width:100.0% !msorm;border-collapse:
 collapse !msorm'>
 <tr style='page-break-inside:avoid;height:3.5pt' style='page-break-inside:
 avoid !msorm;height:3.5pt !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;border-top:
 solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;height:3.5pt'>
 <p style='margin-top:2.0pt;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-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:3.5pt'>
 <p align=right style='margin-top:2.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:3.5pt'>
 <p align=right style='margin-top:2.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;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=' border:none;background:
 #E0E0E0;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=' border:none;background:
 #E0E0E0;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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p style="margin-top:0;margin-bottom:0">Proceeds from issuance of long-term debt (Note 18)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>7,647</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-top:1.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">9,724</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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 (Note 18)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(18,065)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(29,238)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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 debt
 issuance costs</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(54)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(34)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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>502</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">211</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(193)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(128)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p style="margin-top:0;margin-bottom:0">Payments of obligations under finance lease</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(199)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(210)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p style="margin-top:0;margin-bottom:0">Interest paid &#150; net of capitalized portion</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(5,891)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(7,528)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p style="margin-top:0;margin-bottom:0">Settlements of derivative transactions</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(2,066)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(3,727)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(28,470)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(14,913)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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>76</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">66</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p style="margin-top:0;margin-bottom:0">Redemption of shares of minority interest</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(15)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p style="margin-top:0;margin-bottom:0">Proceeds from capital expenditures under long-term
 financing</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>8,746</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">9,159</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.5pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p style="margin-top:0;margin-bottom:0">Payments of capital expenditures under long-term financing</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(6,837)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(9,282)</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;
 background:#E0E0E0;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;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(44,819)</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(45,900)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.25pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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 FOREIGN
 EXCHANGE RATE CHANGES ON CASH AND <br>
 CASH EQUIVALENTS</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(703)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(710)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.25pt'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;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
 (DECREASE) IN CASH AND CASH EQUIVALENTS</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>577</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(13,189)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.25pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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 YEAR</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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>16,870</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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">30,059</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.25pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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 YEAR</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>17,447</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">16,870</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='text-align:justify' style="margin-top:0;margin-bottom:0"><i>See
accompanying Notes to 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
CONSOLIDATED FINANCIAL STATEMENTS</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>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin-left:.25in;text-align:justify;text-indent:
- -.25in;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b><b>Corporate
Information</b></p>

<p align=left style='margin-left:.25in;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>

<p style='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 U.S. ownership.  Under its amended Articles of Incorporation,
PLDT&#146;s corporate term is currently limited through 2028.  In 1967, effective
control of PLDT was sold by the General Telephone and Electronics Corporation,
then 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.  In 1998, First Pacific Company Limited, or First Pacific,
and its Philippine and other affiliates, collectively the First Pacific Group,
acquired a significant interest in PLDT.  On March 24, 2000, NTT Communications
Corporation, or NTT Communications, through its wholly-owned subsidiary NTT
Communications Capital (UK) Ltd., or NTTC-UK, became PLDT&#146;s strategic partner
with approximately 14% economic and voting interest in the issued and
outstanding common stock of PLDT.  Simultaneous with NTT Communications&#146;
investment in PLDT, the latter acquired 100% of Smart Communications, Inc., or
Smart.  On March 14, 2006, NTT DoCoMo, Inc., or NTT DoCoMo, acquired from NTT
Communications approximately 7% of PLDT&#146;s then outstanding common shares held
by NTT Communications with NTT Communications retaining ownership of
approximately 7% of PLDT&#146;s common shares.  Since March 14, 2006, NTT DoCoMo has
made additional purchases of shares of PLDT and together with NTT
Communications beneficially owned 20.86% of the outstanding shares of PLDT&#146;s
common stock as at February 29, 2008.  On February 28, 2007, Metro Pacific
Asset Holdings, Inc., a Philippine affiliate of First Pacific, completed the
acquisition of an additional interest of approximately 46% in Philippine
Telecommunications Investment Corporation, or PTIC, a shareholder of PLDT.
This additional investment in PTIC represents an attributable interest of
approximately 6.4% of the then issued common shares of PLDT and thereby raised
First Pacific Group&#146;s beneficial ownership to approximately 28% of PLDT&#146;s
shares of common stock as at that date.  First Pacific Group had beneficial
ownership of approximately 26.17% in PLDT&#146;s outstanding common stock as at
February 29, 2008.</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">The
common shares of PLDT are listed and traded on the Philippine Stock Exchange,
or PSE.  On October 19, 1994, an American Depositary Receipt, or ADR, 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.  Effective February
10, 2003, PLDT appointed JP Morgan Chase Bank as successor depositary for
PLDT&#146;s ADR facility.  The ADSs are listed on the New York Stock Exchange, or
NYSE, in the United States and are traded on the NYSE under the symbol &#147;PHI&#148;.
As at December 31, 2007, there were a total of over 42 million ADSs
outstanding.</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">Until
early 2007, the ADSs were also listed on the NYSE Arca.  However, PLDT
voluntarily delisted its ADSs from the NYSE Arca, effective February 12, 2007, after
determining that doing so is in the best interest of PLDT and its stockholders.<a
name="OLE_LINK75"></a><a name="OLE_LINK74"></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">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">Our registered office address is Ramon Cojuangco Building, Makati Avenue, Makati City, Philippines.</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 consolidated financial
statements as at December 31, 2007 and 2006 and for the two years ended
December 31, 2007 were approved and authorized by the board of directors on
March 25, 2008, as reviewed and recommended for approval by the Audit
Committee.</p>

<p style='margin-left:.25in' 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"><a name="OLE_LINK54">&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='margin-left:.25in;text-align:justify;text-indent:
- -.25in;page-break-after:avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b><b>Summary
of Significant Accounting Policies and Practices</b></p>

<p style='margin-left:.25in;text-align:justify;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>Basis of
Preparation</b></p>

<p style='margin-left:.25in;text-align:justify;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">Our
consolidated financial statements have been prepared under the historical cost
convention except for the revaluation of derivative financial instruments,
available-for-sale financial investments and investment properties that have
been measured at fair values.</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 consolidated financial
statements are presented in Philippine peso, PLDT&#146;s functional and presentation
currency and all values are rounded to the nearest million except when
otherwise indicated.</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>Basis of
Consolidated Financial Statements 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our
consolidated financial statements include the financial statements of PLDT (the
&#147;Parent Company&#148;) and those of the following subsidiaries (collectively, the &#147;PLDT
Group&#148;).</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:97.08%;margin-left:.25in;border-collapse:collapse;width:97.08% !msorm;
 border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:0in;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:0in;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:0in;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p 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=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">2006</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;margin-right:0in;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;margin-right:0in;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Place of Incorporation </b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;margin-right:0in;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=5 valign=top style=' border:none;
 border-bottom:solid windowtext 1.0pt;padding:0in 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='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 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>Name of Subsidiary</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;margin-right:0in;
 margin-bottom:0in;margin-left:1.45pt;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Principal Activity</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom: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>Direct</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.5pt;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>Indirect</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.5pt;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>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.5pt;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">Direct</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.5pt;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">Indirect</p>
 </td>
 </tr>
 <tr style='height:5.0pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:5.0pt'>
 <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:5.0pt'>
 <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:5.0pt'>
 <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:5.0pt'>
 <p align=right style='margin-right:.1in;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:5.0pt'>
 <p align=right style='margin-right:.1in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 height:5.0pt'>
 <p align=right style='margin-right:.1in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 height:5.0pt'>
 <p align=right style='margin-right:.1in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 height:5.0pt'>
 <p align=right style='margin-right:.1in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>

 <tr style='height:16.2pt'>
 <td   colspan=3 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:16.2pt'>
 <p style='margin-top:1.0pt;margin-right:.1in;margin-bottom:
 1.0pt;margin-left:0in' style="margin-top:0;margin-bottom:0"><b>Wireless</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:16.2pt'>
 <p style='margin-top:1.0pt;margin-right:.1in;margin-bottom:
 1.0pt;margin-left:0in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:16.2pt'>
 <p style='margin-top:1.0pt;margin-right:.1in;margin-bottom:
 1.0pt;margin-left:0in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:16.2pt'>
 <p style='margin-top:1.0pt;margin-right:.1in;margin-bottom:
 1.0pt;margin-left:0in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:16.2pt'>
 <p style='margin-top:1.0pt;margin-right:.1in;margin-bottom:
 1.0pt;margin-left:0in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:16.2pt'>
 <p style='margin-top:1.0pt;margin-right:.1in;margin-bottom:
 1.0pt;margin-left:0in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-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</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Smart
 Broadband, Inc., or SBI</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">Internet broadband distribution</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">SmartConnect
 Holdings Pte. Ltd., <br>
 or SCH</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Singapore</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">Investment company</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">I-Contacts
 Corporation, or <br>
 I-Contacts</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">Customer Interaction Services</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Wolfpac
 Mobile, Inc., or Wolfpac </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">Mobile applications development and services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 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=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">SmartConnect
 Global Pte. Ltd., <br>
 or SGP</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Singapore</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">International trade of satellites and GSM enabled global telecommunications</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:.25in' style="margin-top:0;margin-bottom:0">Wireless Card, Inc.,
 or WCI</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">Promotion of the sale and/or patronage of debit <br>
 and/or charge cards</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 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=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Smarthub,
 Incorporated, or SHI</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">Development and sale of software, maintenance <br>
 and support services</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Pilipino
 Telephone Corporation, <br>
 or Piltel</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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 and fixed line services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>92.1</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">3rd
 Brand Pte. Ltd., or <br>
 3rd Brand</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Singapore</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">Solutions and systems integration services</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>85.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">94.4</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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 information and messaging services</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>88.5</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>11.5</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">88.5</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">11.5</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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, <br>
 or Mabuhay Satellite</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>67.0</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">67.0</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:16.2pt'>
 <td   colspan=3 valign=bottom style=' background:#E0E0E0;
 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>Fixed Line</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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 ClarkTel</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-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
 Subic Telecom, Inc., or SubicTel</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-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, <br>
 or PLDT Global</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:0in;text-align:center;text-indent:1.3pt' style="margin-top:0;margin-bottom:0">British Virgin Islands</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-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=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>97.5</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">97.5</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-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=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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 <br>
 and related value-added services</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>75.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">75.0</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:3.5pt'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <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:3.5pt'>
 <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:3.5pt'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:0in;text-align:center' 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=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:0in;text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:0in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:0in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' padding:0in 0in 0in 0in;
 height:3.5pt'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:0in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:16.2pt'>
 <td   colspan=3 valign=bottom style=' background:#E0E0E0;
 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>Information and
 Communications Technology, or ICT</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;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</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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 <br>
 for Internet-based services, e-commerce, customer interaction services and
 IT-related services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">100.0</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">SPi
 Technologies, Inc., <br>
 or SPi, and subsidiaries <br>
 or SPi Group</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">Knowledge
 processing solutions</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">ePLDT
 Ventus, Inc., <br>
 or Ventus</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">Customer
 interaction services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Vocativ
 Systems, Inc., or Vocativ</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">Customer
 interaction services</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Parlance
 Systems, Inc., or Parlance</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">Customer
 interaction services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100.0</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Infocom
 Technologies, Inc., <br>
 or Infocom</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">Internet
 access services</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>99.6</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">99.6</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Digital
 Paradise Thailand</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Thailand</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">Internet
 access services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>87.5</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">87.5</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">netGames,
 Inc., or netGames</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">Publisher
 of online games</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>80.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">80.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Digital Paradise, Inc., or <br>
 Digital Paradise</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">Internet
 access services</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>75.0</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">75.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Level
 Up! (Philippines), Inc., <br>
 or Level Up!</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">Publisher
 of online games</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>60.0</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">60.0</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-top:1.0pt;margin-right:0in;margin-bottom:
 1.0pt;margin-left:27.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Airborne
 Access Corporation, <br>
 or Airborne Access</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:1.0pt;margin-right:0in;
 margin-bottom:1.0pt;margin-left:.15in;text-align:center;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Philippines</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.5pt;background:#F3F3F3;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">Wireless
 Internet services</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:.2in;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0"><b>51.0</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:1.0pt;margin-right:8.65pt;
 margin-bottom:1.0pt;margin-left:0in;text-align:right' style="margin-top:0;margin-bottom:0">51.0</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 fully 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' style="margin-top:0;margin-bottom:0">The financial statements of our
subsidiaries are prepared for the same reporting period as PLDT.  We prepare
our consolidated financial statements using uniform accounting policies for
like transactions and other events with similar circumstances.  All intra-group
balances, income and expenses and unrealized gains and losses resulting from
intra-group transactions are eliminated in full.</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">Minority
interest represents the portion of profit or loss and net assets not held by us
and are presented separately in the consolidated statements of income and
within equity in the consolidated balance sheets, separately from equity
attributable to equity holders of PLDT.  Acquisition of minority interests is
accounted for using the parent entity extension method, whereby, the difference
between the consideration and the net book value of the share of the net assets
acquired is recognized in goodwill.</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">Minority
interests represent the equity interests in Piltel, Level Up!, Mabuhay
Satellite, 3rd Brand, Maratel, BCC,
Digital Paradise, Digital Paradise Thailand, netGames, Infocom and Airborne
Access 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' style="margin-top:0;margin-bottom:0">When subsidiaries are sold, the
difference between the selling price and the net assets plus cumulative
translation differences and unamortized goodwill is recognized in the
consolidated statement of income.</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>Statement
of Compliance</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 consolidated financial
statements are prepared in compliance with International Financial Reporting
Standards as issued by the International Accounting Standards Board (&#147;IFRS&#148;).</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">References to IFRS standards
include the application of International Accounting Standards, or IAS,
interpretations of the International Financial Reporting Interpretations
Committee, or IFRIC, and interpretations of the Standards Interpretation
Committee, or SIC.</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>First-time
Adoption and Transition to IFRS</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">These are our first consolidated financial
statements prepared in accordance with IFRS.</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">Prior to our adoption of IFRS
until December 31, 2006, we prepared our consolidated financial statements in
accordance with accounting principles generally accepted in the United States (&#147;U.S. GAAP&#148;).</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 April 13, 2005, the U.S.
Securities and Exchange Commission adopted amendments to Form 20-F for foreign
private issuers related to the first-time adoption of IFRS.  Under these
amendments, PLDT is permitted to provide only one year of comparative IFRS
balances in the consolidated financial statements for the year ended December
31, 2007.  We have applied <i>IFRS 1, &#147;First-time Adoption of International
Financial Reporting Standards&#148;</i>, in preparing these consolidated financial
statements, with January 1, 2006 as our date of transition.  An explanation of
how the adoption of IFRS has affected our reported financial position,
financial performance and cash flows is set forth below.</p>

<p style='margin-left:.25in' 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' style="margin-top:0;margin-bottom:0">The
first-time adoption and transition to IFRS resulted in certain changes to our
previous accounting policies recorded under U.S. GAAP.  The comparative figures
for the 2006 consolidated financial statements were restated to reflect the
changes in accounting policies. </p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;
margin-bottom:.0001pt' 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' style="margin-top:0;margin-bottom:0">IFRS
1 allows first-time adopters certain exemptions from the general requirements
to apply IFRS effective December 31, 2007 retrospectively.  In preparing our
first IFRS financial statements we applied the following exemptions: (a) <i>IFRS
3, &#147;Business Combinations&#148;,</i> has not been applied to acquisitions of
subsidiaries or of interests in associates and joint ventures that occurred
before January 1, 2000; and (b) we have recognized all cumulative actuarial
gains and losses on pensions and other post-retirement benefits as at January
1, 2006, directly in equity.</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;
margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The following tables
(&#147;Reconciliation Tables&#148;) set forth a reconciliation of (i) consolidated equity
as at January 1, and December 31, 2006, (ii) consolidated net income for the
year ended December 31, 2006 and (iii) consolidated statements of cash flows
for the year ended December 31, 2006, in each case between IFRS and the
previously reported U.S. GAAP financial statements.</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">Reconciliation of consolidated
equity under U.S. GAAP and IFRS at January 1, 2006 and December 31, 2006:</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:96.0%;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;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>Note</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>January 1, 2006</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>December 31, 2006</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='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:3.0pt'>
 <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=' border:none;
 padding:0in 0in 0in 0in;height:3.0pt'>
 <p align=center style='margin-top:0in;margin-right:.25in;
 margin-bottom:0in;margin-left:13.5pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Consolidated equity under U.S. GAAP</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>79,595</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">106,173</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;page-break-after:
 avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Reconciling
 adjustments:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:27.0pt;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=' background:#E0E0E0;
 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">Troubled debt restructuring</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>A</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:31.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>13,026</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:27.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,969</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Component depreciation</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>B</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.4in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(2,329)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:23.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(4,799)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Qualified borrowing costs</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>C</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:31.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,276</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">3,118</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-align:justify;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Defined benefit pension</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>D</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.4in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(27)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">4,646</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Investment properties</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>E</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>300</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">264</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart acquisition</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>F</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.4in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(14,794)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:23.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(14,794)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Provision for onerous contracts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>G</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.4in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(473)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:27.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,636</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Stock-based compensation &#150; long-term <br>
 incentive plan, or LTIP</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>H</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.4in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(282)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Deferred income tax and others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>I</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.4in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(7,526)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:23.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(4,900)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Equity attributable to equity holders of PLDT</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;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;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>71,766</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;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">101,313</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;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;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,</b><b>162</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:27.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,540</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Consolidated equity under IFRS</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;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:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.6pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>72,928</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:27.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">102,853</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">Reconciliation
between consolidated net income under U.S.
GAAP and IFRS for the year ended December 31, 2006:</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:96.0%;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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:.05pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Note</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-left:.05pt;text-align:center' 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;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt' style="margin-top:0;margin-bottom:0">Consolidated net income under U.S. GAAP</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:33.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:33.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">33,597</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;punctuation-wrap:
 hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Reconciling
 adjustments:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:45.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:33.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Troubled debt restructuring</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:45.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>A</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:30.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(5,938)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Component depreciation</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:45.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>B</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:30.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,470)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Qualified borrowing costs</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:45.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>C</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:30.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,158)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-align:justify' style="margin-top:0;margin-bottom:0">Defined benefit pension</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:45.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>D</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:30.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(45)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Investment
 properties</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:45.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>E</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:30.25pt;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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Provision for onerous contracts</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:45.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>G</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:33.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,109</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Stock-based compensation &#150; LTIP</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:45.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>H</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:33.75pt;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   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Deferred income tax and others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:45.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>I</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:33.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,044</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt' style="margin-top:0;margin-bottom:0">Consolidated net income attributable to the equity
 holders of PLDT for the year under IFRS</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:45.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:33.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">32,385</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt' style="margin-top:0;margin-bottom:0">Minority interest under IFRS</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:45.05pt;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;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:33.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">196</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt' style="margin-top:0;margin-bottom:0">Consolidated net income for the year under IFRS</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:45.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:33.75pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">32,581</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">Reconciliation between consolidated statements of cash
flows under U.S. GAAP and IFRS for the year
ended December 31, 2006:</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:96.0%;margin-left:18.4pt;border-collapse:collapse;width:96.0% !msorm;
 border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p 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;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Operating Activities</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Investing Activities</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Financing Activities</b></p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 background:white;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='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Consolidated cash provided by (used in) under U.S. GAAP</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:17.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">61,201</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(36,764)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(36,916)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=left style='margin-top:0in;margin-right:0in;
 margin-bottom:0in;margin-left:8.6pt;margin-bottom:.0001pt;text-align:left;
 text-indent:-8.6pt;page-break-after:avoid;punctuation-wrap:hanging;
 text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Classification of interest paid</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:17.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,077</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(549)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(7,528)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <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">Classification of interest income
 received</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:13.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,481)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:17.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,481</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:17.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <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">Hedge cost settlement</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:17.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,423</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:17.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:13.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,423)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style='margin: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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:13.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(9)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:17.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:13.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(33)</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Consolidated
 cash provided by (used in) under IFRS</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:17.95pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">69,211</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(35,790)</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(45,900)</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"><b><i>A. Troubled
Debt Restructuring</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">Pursuant
to a debt restructuring plan of Piltel adopted in June 2001, PLDT 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.  Each share of Series V, VI and VII
Convertible Preferred Stock is convertible at any time at the option of the
holder into one share of PLDT common stock.  Shares of Series V and Series VI
Convertible Preferred Stock which are outstanding on the seventh anniversary of
the issue date thereof, and shares of Series VII Convertible Preferred Stock
which are outstanding on the eighth anniversary of the issue date thereof, will
be mandatorily converted into shares of PLDT common stock on the date
immediately following such anniversary date.  Under a put option exercisable
for 30 days following the mandatory conversion, 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. As at December 31, 2006,
all Series VII Convertible Preferred Stock had been voluntarily converted.</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 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 Php13,892 million.</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 U.S. GAAP, Series V, VI and
VII Convertible Preferred Stock were accounted for and recognized at fair value
at the date of issuances &#150; net of bifurcated option values.  The debt
instruments were recorded as a &#147;Preferred Stock Subject to Mandatory
Redemption&#148; account and presented as mezzanine equity in the consolidated
balance sheets.  The foreign currency component and the call option embedded in the Series V, VI and
VII Convertible Preferred Stock was bifurcated and accounted for separately in
conformity with <i>FAS 133, &#147;Accounting for Derivative Instruments and Hedging
Activities&#148;</i>.  Moreover, the difference between the aggregate fair value of
the issued Series V, VI and VII Convertible Preferred Stock (inclusive of option values) and the
Piltel Series K Class I Convertible Preferred Stock was deferred and presented
as part of &#147;Remaining excess of debt forgiven over value of consideration
given&#148; account in the consolidated balance sheets in conformity with the
accounting for troubled debt restructuring, such that no gain was recorded on
the restructuring. Thereafter, interest incurred on the remaining restructured
debt was recorded as an offset against remaining excess of debt forgiven over
the value of consideration given.</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">Furthermore, under U.S. GAAP, the
Piltel debt outstanding as at July 2, 2004 was reduced by the amount of debt
cancelled in connection with the above transaction by Smart. The difference between the sum of future
undiscounted cash flows for the newly issued debt of Smart and cash settlement
and the Piltel cancelled debt was recognized as gain on debt restructuring in
the 2004 consolidated statement of income. The difference between the future
undiscounted cash flows of the newly issued debt and the fair value of new debt
was deferred and presented as part of &#147;Remaining excess of debt forgiven over
value of consideration given&#148; account in the consolidated balance sheets in
conformity with the accounting for troubled debt restructuring. Thereafter,
interest incurred on the new debt has been recorded as an offset against
&#147;Remaining excess of debt forgiven over value of consideration given&#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">&nbsp;</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">Under IFRS,
we treated the Series V Convertible Preferred Stock as a compound instrument
consisting of a liability and an equity component. The fair value of the Series
V Convertible Preferred Stock was determined at issue date, of which  the fair
value of the liability component as at date of issuance was recorded as
&#147;Preferred Stock Subject to Mandatory Redemption&#148; and was included under the
&#147;Interest-bearing Financial Liabilities&#148; account in the consolidated balance
sheets. The residual amount was assigned as the equity component. Series VI and
VII Convertible Preferred Stock, on the other hand, are not denominated in the
functional currency of the PLDT Group and hence do not contain an equity
component. These instruments were designated as debt instruments with embedded
call options. The fair value of embedded call options as of issuance date was
bifurcated and thereafter accounted for separately at fair value through profit
or loss. The residual amount was assigned as a liability component and accreted
to the redemption amount up to the call option date using the effective
interest rate method.  The difference between the amount designated as
liability components 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 are
recognized as interest expense in the profit and loss and added to the
&#147;Preferred Stock Subject to Mandatory Redemption&#148; account.</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">Furthermore,
under IFRS, the Piltel debt outstanding as at July 2, 2004 and June 2001
(outstanding restructured debt and Series K Class I Convertible Preferred Stock
of Piltel) was reduced by the amount of debt cancelled.  The difference between
the net carrying value of the cancelled Piltel debt and the fair market value
of the consideration given to the existing debt holders, in the form of newly
issued Smart debt and PLDT Convertible Preferred Stock, was recorded as a gain
at the date of restructuring. All interest payments related to the restructured
debt are charged interest expensed as 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">These adjustments reduced our consolidated net income by
Php5,938 million for the year ended December 31, 2006, as well as our dividend
and accretion of liability on Convertible Preferred Stock totaling Php881
million, which is presented under equity section under U.S. GAAP, and increased
our consolidated equity by Php13,026 million and Php7,969 million as at January
1, 2006 and December 31, 2006, respectively.  Also, as at December 31, 2006,
this adjustment reduced our consolidated interest bearing financial
liabilities, net of current portion, remaining excess of debt forgiven and
preferred stock subject to mandatory redemption by Php3,924 million, Php2,688
million and Php1,374 million, respectively, and increased our consolidated
current portion of interest bearing financial liabilities by Php17 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' style="margin-top:0;margin-bottom:0"><b><i>B. Component Depreciation</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">Under IFRS, component depreciation
is required if components of an asset have different patterns of economic benefit.
 Each part of an item of property, plant and equipment with a cost that is
significant in relation to the total cost of the item should be depreciated
separately, based on a systematic basis over the estimated useful life of each
identified part.  There is no such equivalent accounting requirement under U.S.
GAAP.  The reconciliation adjustment pertains to the effect of the application
of component depreciation for property, plant and equipment under IFRS, whereby
components of an asset were identified and depreciated with their corresponding
estimated useful lives.  </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">This adjustment reduced our
consolidated net income by Php2,470 million for the year ended December 31, 2006
and reduced our consolidated equity by Php2,329 million as at January 1, 2006
and reduced our consolidated equity and consolidated property, plant and
equipment by Php4,799 million as at December 31, 2006.</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>C. Qualified
Borrowing Costs</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">Under IFRS,
capitalized borrowing costs include exchange rate differences arising from
foreign currency borrowings whereas under U.S. GAAP, capitalized borrowing
costs exclude rate exchange differences arising from foreign currency
borrowings.  The reconciliation adjustments include a capitalization of exchange
rate differences from foreign currency borrowings eligible for capitalization
to our property, plant and equipment and depreciation expense related to
capitalized exchange rate differences.</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 adjustment reduced our
consolidated net income by Php1,158 million for the year ended December 31,
2006 and increased our equity by Php4,276 million as at January 1, 2006 and our
consolidated equity and consolidated property, plant and equipment by Php3,118
million as at December 31, 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>D. Defined
Benefit Pension</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">Under IFRS,
the defined benefit pension obligation recognized in the consolidated balance
sheet is equal to the present value of such obligation plus or minus any
actuarial gains and losses not yet recognized, minus unrecognized prior
services costs, and minus the fair value of any plan assets.  Under U.S. GAAP,
following the adoption of <i>FAS 158, &#147;Employers&#146; Accounting for Defined
Benefit Pension and Other Post-Retirement Plans&#148;</i>, in 2006, we recognized
the overfunded or underfunded status of a benefit plan, measured as the
difference between the fair value of the plan assets and the defined benefit
pension obligation as an asset or liability in the consolidated balance sheet.
FAS 158 also requires that the changes in the funded status be recorded through
comprehensive income in the year in which those changes occur.  In 2006, we
recognized an aggregate amount of Php4,718 million unfunded plans as other
comprehensive income in the equity section of our 2006 consolidated balance
sheet.</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 our transition to IFRS, we
availed of the exemption allowed under IFRS to recognize all cumulative
actuarial gains and losses in equity.  The reconciliation adjustments include
the reversal of other comprehensive income of Php4,718 million recognized in
2006 and recognition of other differences between the accrued liability under
IAS 19 and FAS 158.</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">This difference reduced our
consolidated net income by Php45 million for the year ended December 31, 2006
and our consolidated pension and other benefits and thereby our consolidated
equity by Php27 million as at January 1, 2006, and increased our consolidated
pension and other benefits and thereby our consolidated equity by Php4,646
million as at December 31, 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>E. Investment
Properties</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">Under U.S.
GAAP, investment properties are accounted for at cost  similar to the
accounting policy adopted for property, plant and equipment.  Under IFRS,
investment properties are presented separately in the consolidated balance
sheet and accounted for at fair value with the changes in fair value recognized
in the consolidated statement of income.  The reconciliation adjustment
pertains to reclassification of certain property, plant and equipment to
investment properties, fair market value adjustments and reversal of previously
recognized depreciation expenses.</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">This difference reduced our
consolidated net income by Php36 million for the year ended December 31, 2006
and increased our consolidated equity by Php300 million and Php264 million as
at January 1, 2006 and December 31, 2006, respectively.  Also, as at December
31, 2006, our consolidated property, plant and equipment was reduced by Php323
million and our consolidated investment properties increased by Php587 million.</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>F. Smart Acquisition</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">Pursuant to the exemptions
available under IFRS 1, we applied IFRS 3 in respect of all our business
combinations starting January 1, 2000. The application of IFRS 3 did not result
in any significant differences between U.S. GAAP and IFRS except for our acquisition
of Smart in 2000.<i>  </i>Under IFRS, the Smart acquisition is accounted for at
historical cost similar to a pooling of interest method while under U.S. GAAP, the
Smart acquisition has been accounted for under the purchase method of
accounting.  The reconciliation adjustment pertains to the carrying value of
goodwill as at January 1 and December 31, 2006.  The fair value adjustments and
recognized intangible assets recognized under purchase accounting in U.S. GAAP
have been fully amortized as at January 1, 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">This difference reduced our
consolidated equity by Php14,794 million as at January 1, 2006 and December 31,
2006 and reduced our consolidated goodwill and other intangible assets by the
same amount as at December 31, 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>G. Provision
for Onerous Contracts</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">Under U.S. GAAP, we accounted for
the minimum and supplemental portion of the Air Time Purchase Agreement, or
ATPA, with ACeS International Limited, or AIL, similar to a lease obligation.
See <i>Note 22 &#150; Related Party Transactions </i>and<i> Note 24 &#150; Contractual
Obligations and Commercial Commitments</i>.  Accordingly, the minimum Air Time
Purchase Obligation of US$5 million was recorded as a rent expense on a
straight-line basis over the term of the ATPA.  The Supplemental Air Time
Purchase Obligation of US$15 million, on the other hand, was accounted for as a
contingent rent, where such rent is only accrued if certain conditions are
met.  As those conditions were met throughout the life of the ATPA, an annual
charge of US$15 million was accrued for U.S. GAAP purposes.</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">Under <i>IAS 37, &#147;Provisions,
Contingent Liabilities and Contingent Assets,&#148;</i> we considered the ATPA as
&#147;onerous&#148; and recorded a provision for future payments in the said contract in
prior years and as of the date of transition to IFRS in January 1, 2006.</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">Under U.S. GAAP, a debtor of a
contractual obligation is permitted to derecognize a liability if and only if
it has been contractually extinguished, which requires that either of the
following conditions be met: (a) the debtor pays the creditor and is relieved
of its obligation for the liability; or (b) the debtor is legally released from
being the primary obligor under the liability, either judicially or by the
creditor.  Following the formal entering into an amendment to the ATPA on
February 1, 2007, the Amended ATPA, as more fully described in <i>Note 22 &#150;
Related Party </i>Transactions, the second condition was met and we would have
recorded in 2007 an adjustment to reverse the ATPA liability in the amount of
Php3,991 million.</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;line-height:normal' 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;line-height:normal;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">In contrast, under IFRS, as
at December 31, 2006, the ATPA no longer qualified as an onerous contract under
the provision of <i>IAS 10, &#147;Events After the Balance Sheet Date&#148;</i>, since
the cost of meeting the obligations under the Amended ATPA is below or within
the estimated benefits that PLDT is expected to receive under the agreement.  Accordingly, the net provision for onerous contact
amounting to US$72 million, or Php3,529 million, was reversed on December 31,
2006, excluding the amount paid or to be paid in relation to the Amended ATPA.</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;
margin-left:.25in;margin-bottom:.0001pt;line-height:normal' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The reconciliation adjustments in
2006 represent the derecognition of the onerous contract liability under IFRS,
which under U.S. GAAP had been reversed in 2007.  This difference increased our
consolidated net income by Php4,109 million and reduced our consolidated equity
by Php473 million as at January 1, 2006 and increased our consolidated equity
by Php3,636 million as at December 31, 2006.  Also, as at December 31, 2006,
our consolidated accounts payable increased by Php287 million and our consolidated
accrued and other current liabilities decreased by Php3,923 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"><b><i>H. Stock
Based Compensation &#150; LTIP</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">Under
U.S. GAAP, prior to January 1, 2006, we applied the intrinsic value method
under <i>Accounting Principles Board 25, &#147;Accounting for Stock Issued to
Employees&#148;</i> and<i> FASB Interpretations No. (FIN) 28, &#147;Accounting for Stock
Appreciation Rights and Other Variable Stock Option or Award Plans&#148;</i> in
accounting for equity-settled and cash-settled share-based payments,
respectively.  In 2006, following our adoption of <i>FAS 123 (R),</i> <i>&#147;Share-based
Payments&#148;,</i> we accounted for share-based payments at fair value which is
consistent with <i>IFRS 2, &#147;Share-based Payments.&#148;  </i>In our adoption of FAS
123 (R), we availed ourselves of the provisions of the modified prospective
transition, or MPT, method wherein we recognized the cumulative effect of the
change in accounting principle, net of any tax effects, to reflect the
difference between the intrinsic value and the fair value of the liability
award in 2006.  Prior year financial statements under U.S. GAAP were not
restated.  The cumulative effect of adoption of FAS 123 (R) prior to January 1,
2006 resulted in a change in our reported net income under U.S. GAAP of Php189
million (net of tax of Php93 million) in 2006, which represents the difference
between the intrinsic value and the fair value of the liability award on
January 1, 2006.</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">Under
IFRS 2, similar to FAS 123 (R), both equity-settled and cash-settled
share-based payment awards are accounted at fair value similar to FAS 123 (R).
The reconciliation adjustment derecognizes the cumulative effect of our
adoption of FAS 123 (R) of Php189 million (net of tax of Php93 million) as a
charge to the opening retained earnings on January 1, 2006.</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 difference increased our consolidated
net income by Php282 million for the year ended December 31, 2006 and reduced
our consolidated equity by the same amount as at January 1, 2006.  The adoption
of IFRS had no impact on the consolidated stock-based compensation under our
consolidated equity as at December 31, 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>I.  Deferred
income tax and others</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
reconciliation of deferred income tax pertains to the tax effects of the IFRS
and U.S. GAAP reconciliation adjustments discussed in items A to H above.</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">Other
reconciliation adjustments refer to the adjustments made to account for
business combinations involving less than 100% of the equity interests in an
acquiree.  Under IFRS, net identifiable assets of an acquiree are recognized at
their full fair value and minority interest is measured at its proportionate
share of the fair value of the acquiree&#146;s net identifiable assets, exclusive of
goodwill.  Under U.S. GAAP, net identifiable assets of an acquiree are
recognized partly at fair market value (to the extent of the acquirer&#146;s ownership
interest) and partly at historical book value (to the extent of the minority&#146;s
ownership interest) and minority interest is measured at its proportionate
share of the historical book value of the acquiree&#146;s net identifiable assets.</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 effect
of the above differences increased our consolidated net income by Php4,044
million and decreased our cumulative translation adjustments by Php1,418
million for the year ended December 31, 2006 and reduced our consolidated
equity by Php7,526 million and Php4,900 million as at January 1, 2006 and
December 31, 2006, respectively.  Additionally, as at December 31, 2006, our
consolidated goodwill and other intangible assets, other assets, minority
interests, current deferred income tax assets and accrued and other current
liabilities were reduced by Php233 million, Php10 million,  Php503 million,
Php10,042 million and Php71 million, respectively.  Our consolidated noncurrent
deferred income tax assets and noncurrent deferred income tax liabilities
increased by Php4,832 million and Php21 million, respectively, as at December
31, 2006. </p>

<p style='margin-left:.25in' 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' style="margin-top:0;margin-bottom:0"><b><i>Reclassifications</i></b></p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;
margin-bottom:.0001pt' 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' style="margin-top:0;margin-bottom:0">Certain accounts were
reclassified to conform with IFRS presentation requirements. These
reclassifications have no effect on our consolidated net income for the year ended
December 31, 2006.  The following items discuss the significant
reclassifications that have been made:</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;
margin-bottom:.0001pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">(a)&nbsp;&nbsp;&nbsp; under U.S. GAAP,
deferred taxes are presented as current or noncurrent assets/liabilities
depending on the timing of settlement or realization of the related balance
sheet item; whereas, under IFRS, deferred taxes are presented as noncurrent
assets/liabilities regardless of the timing of realization;</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:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">(b)&nbsp;&nbsp;&nbsp; under U.S. GAAP,
minority interests are presented in a specific, separate item on the liability
side of the balance sheet, whereas, under IFRS, minority interests are
presented as part of equity;</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 style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">(c)&nbsp;&nbsp;&nbsp; under U.S. GAAP,
debt issuance costs are presented as part of other noncurrent and current
assets in the balance sheet, whereas, under IFRS, debt issuance costs are
netted against long-term debt under interest bearing financial liabilities; and</p>

<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.25in;
margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">(d)&nbsp;&nbsp;&nbsp; a different
presentation format was used for the consolidated balance sheet, consolidated
statement of income and consolidated statement of cash flows.</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>Accounting Standards Effective
in 2007</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">Concurrent with our first time
adoption of IFRS, we have also adopted the following new and amended IAS and IFRS
that became effective in 2007.</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">Our
adoption of the following new and amended standards and interpretations did not
have any effect on our consolidated financial statements.  Our adoption,
however, gave rise to additional disclosures on the following:</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:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><i>Amendments to IAS 1, &#147;Presentation of Financial Statements
&#150; Capital Disclosures&#148;.</i></b>  This amendment requires us to make new
disclosures to enable users of the consolidated financial statements to
evaluate our objectives, policies and processes for capital management.  These
new disclosures are shown in <i>Note 26 &#150; Financial Assets and Liabilities</i>.</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:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><i>IFRS 7, &#147;Financial Instruments: Disclosures&#148;.</i></b>  This
standard requires disclosures that enable users of the consolidated financial
statements to evaluate the significance of our financial instruments and the
nature and extent of risks arising from those financial instruments.  The new disclosures
are included throughout the consolidated financial statements.  These new
disclosures are shown in <i>Note 14 &#150; Trade and Other Receivables</i> and <i>Note
26 &#150; Financial Assets and 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:.75in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><i>International Financial Reporting Interpretations Committee
(IFRIC) 8, &#147;Scope of IFRS 2, Share-based Payment&#148;.</i></b>  This interpretation
requires IFRS 2 to be applied to any arrangements in which the entity cannot
identify specifically some or all of the goods received, in particular where
equity instruments are issued for consideration which appears to be less than
fair value.  As equity instruments are only issued to employees in accordance
with the employee share scheme, the interpretation had no impact on our
consolidated financial statements.</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><i>IFRIC 9, &#147;Reassessment of Embedded Derivatives&#148;.</i></b>
This interpretation states that the date to assess the existence of an embedded
derivative is the date that an entity first becomes a party to the contract,
with reassessment only if there is a change to the contract that significantly
modifies the cash flows.  The Interpretation had no impact on our consolidated
financial statements.</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><i>IFRIC 10, &#147;Interim Financial Reporting and Impairment&#148;.</i></b>
We adopted this Interpretation of IFRIC 10 as at January 1, 2007, which
requires that an entity must not reverse an impairment loss recognized in a
previous interim period in respect of goodwill or an investments
available-for-sale.  As we had no impairment losses previously reversed, the
interpretation had no impact on our consolidated financial statements.</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>Significant Accounting Policies
and Practices</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"><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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Investments
in associates are accounted for using the equity method of accounting and are
initially recognized at cost.  An associate is an entity in which we have significant
influence and which is neither a subsidiary nor a joint venture.</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">Under the equity method, the
investment in associate is carried in the consolidated balance sheet at cost
plus post acquisition changes in our share of net assets of the associate.
Goodwill relating to an associate is included in the carrying amount of the
investment and is not amortized.  Our consolidated statement of income reflects
the share of the results of operations of the associates.  Where there has been
a change recognized directly in the equity of the associate, we recognize our
share in such change and disclose this, when applicable, in our consolidated
statement of changes in equity.  Profits or losses resulting from our
transactions with and among our associates are eliminated to the extent of our interest
in those associates.</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">Our
reporting dates and that of our associates are identical and our associates&#146;
accounting policies conform to those used by us for like transactions and
events in similar circumstances.</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>Investments in Joint
Ventures</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">Investments in a joint venture
that is a jointly controlled entity is accounted for using the equity method of
accounting.  The financial statements of the joint venture are prepared for the
same reporting period as the financial statements of PLDT.  Adjustments are
made where necessary to bring the accounting policies in line with those of
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">Adjustments
are made in our consolidated financial statements to eliminate our share of
unrealized gains and losses on transactions between PLDT and our jointly
controlled entity.  Losses on transactions are recognized immediately if the
loss provides evidence of a reduction in the net realizable value of current
assets or an impairment loss.  The joint venture is carried at equity method
until the date on which we cease to have joint control over the joint venture.</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 Transactions
and Translations</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 functional <a
name="OLE_LINK114"></a><a name="OLE_LINK113">and presentation</a> currency of
the entities under PLDT Group (except for SCH, SGP, 3rd Brand, Mabuhay Satellite,
PLDT Global, Digital Paradise Thailand and SPi and certain of its subsidiaries)
is the Philippine peso.  Transactions in foreign currencies are initially
recorded in the functional currency rate prevailing at the date of the
transaction.  Monetary assets and liabilities denominated in foreign currencies
are retranslated at the functional closing rate of exchange prevailing at the
balance sheet date.  All differences are recognized in the consolidated
statement of income except for foreign exchange losses that qualify as
capitalizable borrowing costs during the construction period for exchange gains
or losses are treated as taxable income or deductible expenses in the year such
exchange gains or losses are realized.  Non&#150;monetary items that are measured in
terms of historical cost in a foreign currency are translated using the
exchange rates as at the dates of the initial transactions.  Non&#150;monetary items
measured at fair value in a foreign currency are translated using the exchange
rates at the date when the fair value is determined.  Any goodwill arising on
the acquisition of a foreign operation and any fair value adjustments to the
carrying amounts of assets and liabilities arising on the acquisition are
treated as assets and liabilities of the foreign operation and translated at
the closing rate.</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 functional currency and
presentation currency of Mabuhay Satellite, PLDT Global, SPi and certain of its
subsidiaries is the U.S. dollar; Thai baht for Digital Paradise Thailand and
Singapore dollar for SCH, SGP and 3rd Brand.  As at the reporting date, the
assets and liabilities of these subsidiaries are translated into the
presentation currency of the PLDT Group at the rate of exchange prevailing at
the balance sheet date, and income and expenses of these subsidiaries are
translated at the weighted average exchange rate for the year.  The exchange
differences arising on translation were recognized as a separate component of
equity as cumulative translation adjustments.  On disposal of these
subsidiaries, the amount of deferred cumulative translation adjustments
recognized in equity relating to subsidiaries are recognized in the
consolidated statement of income.</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>Property,
Plant and Equipment</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">Property,
plant and equipment, except for land, is stated at cost less accumulated
depreciation and amortization and any accumulated impairment losses.  Land is
stated at cost less any impairment in value.  Cost includes the cost of
replacing part of the property, plant and equipment when that cost is incurred,
if the recognition criteria are met.  Likewise, when a major inspection is
performed, its cost is recognized in the carrying amount of the property, plant
and equipment as a replacement if the recognition criteria are satisfied.  All
other repair and maintenance costs are recognized in profit or loss as
incurred.</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">An item of property, plant and
equipment is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal.  Any gain or loss arising on derecognition
of the asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in profit or loss in the year
the asset is derecognized.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Depreciation and
amortization are calculated on a straight-line basis over the estimated useful
lives of the assets.  </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The residual values, estimated useful lives and
depreciation and amortization method are reviewed at least at each financial
year-end.</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">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
substantially available for their intended 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 capitalized if
they are directly attributable to the acquisition, construction or production
of a qualifying asset.  Capitalization of borrowing costs commences when the
activities necessary to prepare the asset for intended use are in progress and
expenditures and borrowing costs are being incurred.  Borrowing costs are
capitalized until the asset is 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 costs.</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">All other borrowing costs are
expensed as 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We are
legally required under various lease agreements to dismantle the installation in
leased sites and restore such sites to their original condition at the end of
the lease contract term.  We recognize the liability measured at the present
value of the estimated costs of these obligations and capitalize such costs as
part of the balance of the related item of property, plant and equipment.</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 amount
of asset retirement obligations are accreted and such accretion is recognized
as interest expense.</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
Properties</i></b></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Investment properties are initially measured at cost
including transaction costs.  The carrying amount includes the cost of
replacing part of an existing investment property at the time that cost is
incurred if the recognition criteria are met; and excludes the costs of day to
day servicing of an investment property.  Subsequent to initial recognition,
investment properties are stated at fair value, which have been determined
based on latest valuations performed by an independent firm of appraisers.
Gains or losses arising from changes in the fair values of investment
properties are included in the consolidated statement of income in the year in
which they arise.  </p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Investment properties
are derecognized when they have been disposed of or when the investment
property is permanently withdrawn from use and no future benefit is expected
from its disposal.  Any gain or loss on the retirement or disposal of an
investment property is recognized in the consolidated statement of income in
the year of retirement or disposal.</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">Transfers
are made to or from investment property only when there is a change in use.
For a transfer from investment property to owner occupied property, the deemed
cost for subsequent accounting is the fair value at the date of change in use.
If owner occupied property becomes an investment property, we account for such
property in accordance with the policy stated under property, plant and equipment
up to the date of change in 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">No assets held under operating
lease have been classified as investment properties.</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>Business
Combinations and Goodwill</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">Business
combinations are accounted for using the purchase method of accounting.  This
involves recognizing identifiable assets (including previously unrecognized
intangible assets) and liabilities (including contingent liabilities and
excluding future restructuring) of any acquired business 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">Goodwill acquired in a business
combination is initially measured at cost, such cost being the excess of the
cost of the business combination over our interest in the net fair value of the
acquiree&#146;s identifiable assets, liabilities and contingent liabilities.
Following initial recognition, goodwill is measured at cost less any
accumulated impairment loss.  For the purpose of impairment testing, goodwill
acquired in a business combination is, from the acquisition date, allocated to
each of our cash-generating units, or groups of our cash-generating units, that
are expected to benefit from the synergies of the combination, irrespective of
whether our other assets or liabilities are assigned to those units or groups
of units.  Each unit or group of units to which the goodwill is allocated:  (1)
represents our lowest level at which the goodwill is monitored for internal
management purposes; and (2) is not larger than a segment based on either our
primary or secondary reporting format determined in accordance with <i>IAS 14,
&#147;Segment Reporting&#148;</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">Where a business combination
agreement provides for an adjustment to the consideration of the combination
contingent on future events or achieving specified earnings level in future
periods, we recognize the estimated amount of that adjustment as part of cost
of the combination and a liability at the acquisition date if the adjustment is
probable and can be measured reliably.  Otherwise, such adjustment is not
recognized until it becomes probable and can be measured reliably in the
subsequent period.  Where future events do not occur or the estimate needs to
be revised, the cost of the business combination initially recognized shall be
adjusted accordingly.  Future changes in estimates are treated as an adjustment
to the cost of the combination with an adjustment to the recorded liability and
goodwill.</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">Where
goodwill forms part of a cash-generating unit, or group of cash-generating
units, 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 this circumstance is measured based on 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Intangible
Assets </i></b></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Intangible assets acquired separately are measured on
initial recognition at cost.  The cost of intangible assets acquired from
business combinations is initially recognized at fair value as at the date of
acquisition.  Following initial recognition, intangible assets are carried at
cost less any accumulated amortization and any accumulated impairment loss.
The useful lives of intangible assets are assessed at the individual asset
level as having either a finite or indefinite useful life.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Intangible assets
with finite lives are amortized over the useful economic life using the
straight-line method and assessed for impairment whenever there is an
indication that the intangible assets may be impaired.  At a minimum, the
amortization period and the amortization method for an intangible asset with a
finite useful life are reviewed at each financial year-end.  Changes in the
expected useful life or the expected pattern of consumption of future economic
benefits embodied in the asset are accounted for by changing the amortization
period or method, as appropriate, and treated as changes in accounting
estimates.  The amortization expense on intangible assets with finite lives is
recognized in the consolidated statement of income.</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">Intangible
assets with indefinite useful lives are tested for impairment annually either
individually or at the cash-generating unit level.  Such intangible assets are
not amortized.  The useful life of an intangible asset with an indefinite life
is reviewed annually to determine whether indefinite life assessment continues
to be supportable.  If not, the change in the useful life assessment from
indefinite to finite is made on a prospective basis.</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">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 statement of income when the asset
is derecognized.</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">Intangible assets created within
the business are not capitalized and expenditures are charged against
operations in the year in which the expenditures are incurred.</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">Research and development costs are
expensed as incurred.</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>Impairment of Non-Financial
Assets</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">We assess at each reporting period
whether there is an indication that our property, plant and equipment, and
intangible assets with finite lives may be impaired.  If any such indication
exists, or when the annual impairment testing for an asset is required, we make
an estimate of the asset&#146;s recoverable amount.  An asset&#146;s recoverable amount
is the higher of an asset&#146;s or cash-generating unit&#146;s fair value less costs to
sell or its value in use and is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent from those of
other assets or groups of assets.  Where the carrying amount of an asset
exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount.  In assessing the value in use, the estimated
future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset.  In determining the fair value less
costs to sell, an appropriate valuation model is used.</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">Impairment losses of continuing
operations are recognized in the consolidated statement 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">For assets, excluding goodwill, an
assessment is made at each reporting date as to whether there is any indication
that previously recognized impairment losses may no longer exist or may have
decreased.  If such indication exists, we make an estimate of recoverable
amount.  A previously recognized impairment loss is reversed only if there has
been a change in the estimates used to determine the asset&#146;s recoverable amount
since the last impairment loss was recognized.  If this is the case, the
carrying amount of the asset is increased to its recoverable amount.  The
increase cannot exceed the carrying amount that would have been determined, net
of depreciation and amortization, had no impairment loss been recognized for
the asset in prior years.  Such reversal is recognized in the consolidated
statement of income.  After such reversal, the depreciation and amortization charges
are adjusted in future years to allocate the asset&#146;s revised carrying amount,
less any residual value, on a systematic basis over its remaining economic useful
life.</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 criteria are also applied in assessing impairment of specific assets:</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>Goodwill</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">Goodwill is
reviewed for impairment annually or more frequently if events or changes in
circumstances indicate that the carrying value may be impaired.  Impairment is
determined for goodwill by assessing the recoverable amount of the
cash-generating unit, or group of cash-generating units, to which the goodwill
relates.  Where the recoverable amount of the cash-generating unit, or group of
cash-generating units, is less than the carrying amount of the cash-generating
unit, or group of cash-generating units, to which goodwill has been allocated
to, an impairment loss is recognized.  Impairment losses relating to goodwill
cannot be reversed in future periods.  </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>Intangible
assets</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">Intangible
assets with indefinite useful lives are tested for impairment annually either
individually or at the cash-generating unit level, as appropriate.  We
calculate the amount of impairment as being the difference between the recoverable
amount of the intangible asset and its carrying amount and recognize the amount
of impairment in the consolidated statement of income.</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>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">After application of the equity
method, we determine whether it is necessary to recognize an additional
impairment loss on our investment in associates.  We determine at each balance
sheet date whether there is any objective evidence that our investment in an
associate is impaired.  If this is the case, we calculate the amount of
impairment as being the difference between the recoverable amount of the
investments in associates and its carrying amount and recognize the amount of
impairment in the consolidated statement 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"><b><i>Cash and Cash Equivalents</i></b></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p 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">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>Short-term Investments</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">Short-term investments are money
market placements, which are highly liquid with maturities of more than three
months but less than one year from date of acquisition.</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>Trade and Other Receivables</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">Trade and other receivables,
categorized as loans and receivables, are recognized initially at fair value
and subsequently measured at amortized cost using the effective interest rate method,
less provision for impairment.  A provision for impairment of trade and other
receivables is established when there is objective evidence that we will not be
able to collect all amounts due according to the original terms of the
receivables.  Significant financial difficulties of the debtor, probability
that the debtor will enter bankruptcy or financial reorganization, and default
or delinquency in payments are considered indicators that the trade receivable
is impaired.  The amount of the provision is the difference between the asset&#146;s
carrying amount and the present value of estimated future cash flows,
discounted at the original effective interest rate.  Cash flows relating to
short-term receivables are not discounted if the effect of discounting is
immaterial.  The carrying amount of the asset is reduced through the use of an
allowance account, and the amount of the loss is recognized in the consolidated
statement of income.  When a trade receivable is uncollectible, it is written
off against the allowance account for trade and other receivables.  Subsequent
recoveries of amounts previously written off are recognized as income in the consolidated
statement 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"><b><i>Inventories and Supplies</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">Inventories and supplies, which
include cellular phone units, materials, spare parts, terminal units and
accessories, are valued at the lower of cost and net realizable 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">Cost is determined using the weighted
average method.  Net realizable value is the estimated selling price in the
ordinary course of the business less the estimated cost to sell.</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>Convertible Preferred Stock</i></b></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"><i>Philippine peso-denominated</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 component of our convertible
preferred stock that exhibits characteristics of a liability is recognized as a
liability in the consolidated balance sheet, net of transaction costs.  The
corresponding dividends on those shares are charged as interest expense in the
consolidated statement of income.  On issuance of our convertible preferred
stock, the fair value of the liability component is determined using a market
rate for an equivalent non-convertible bond and this amount is carried as a
long-term liability on the amortized cost basis until extinguished through conversion
or redemption.</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
remainder of the proceeds is allocated to the conversion option that is
recognized and included in the equity section of the consolidated balance
sheet, net of transaction costs.  The carrying amount of the conversion option
is not re-measured in subsequent years.</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">Transaction costs are apportioned
between the liability and equity components of the convertible preferred stock
based on the allocation of proceeds to the liability and equity components when
the instruments are first recognized.</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>Foreign
currency-denominated</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 treat
the Series VI Convertible Preferred Stock as debt instruments with foreign
currency-denominated embedded call options.  The fair value of embedded call
options as of issuance date was bifurcated and thereafter accounted for
separately at fair value through profit or loss.  The residual amount was
assigned as a liability component and accreted to the redemption amount up to
the call option date using the effective interest rate method.</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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We recognize provisions when we have present obligations,
legal or constructive, as a result of past events, and when 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.  Where we expect some or all of a provision to be reimbursed, the
reimbursement is recognized as a separate asset but only when the reimbursement
is virtually certain.  The expense relating to any provision is presented in
the consolidated statement of income, net of any reimbursements.  If the effect
of the time value of money is material, provisions are discounted using a
current pre-tax rate that reflects, 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 interest expense.</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>Retirement Benefits</i></b></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"><i>Defined benefit pension plans</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We have funded
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.  If the benefits vest immediately following the
introduction of, or changes to, a pension plan, past service cost is recognized
immediately.  Actuarial gains and losses are recognized as income or expense
when the net cumulative unrecognized actuarial gains and losses for each
individual plan 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">The defined benefit asset or
liability comprises the present value of the defined benefit obligation less
past service cost not yet recognized and less the fair value of plan assets out
of which the obligations are to be settled directly.  The value of any asset is
restricted to the sum of any past service cost not yet recognized and the
present value of any economic benefits available in the form of refunds from
the plan or reductions in the future contributions to the plan.</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>Defined contribution plans</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">Smart and I-Contacts record
expenses for defined contribution plans for their contribution when the
employee renders service to Smart and I-Contacts, respectively, essentially coinciding
with their cash contributions to the plans.</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_LINK63"><b><i>Share-Based
Payment Transactions</i></b></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">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;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>Equity-settled
transactions</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 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 set forth in <i>Note
23 &#150; Share-based Payments and 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;page-break-after:avoid' 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 and/or service
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 our opinion, 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-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 and/or service conditions are satisfied.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Where the terms of an equity-settled awards are
modified and the modification increases the fair value of the equity
instruments granted, as measured immediately before and after the modification,
the entity shall include the incremental fair value granted in the measurement
of the amount recognized for services received as consideration for the equity
instruments granted. The incremental fair value granted is the difference
between the fair value of the modified equity instrument and that of the
original equity instrument, both estimated as at the date of the modification.
If the modification occurs during the vesting period, the incremental fair
value granted is included in the measurement of the amount recognized for
services received over the period from the modification date until the date
when the modified equity instruments vest, in addition to the amount based on
the grant date fair value of the original equity instruments, which is recognized
over the remainder of the original vesting period. If the modification occurs
after vesting date, the incremental fair value granted is recognized
immediately, or over the vesting period if the employee is required to complete
an additional period of service before becoming unconditionally entitled to
those modified equity instruments.</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">Where an equity-settled award is cancelled with
payment, 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 modifications 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;page-break-after:avoid' 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-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our LTIP grants share
appreciation rights, or SARs, to our eligible key executives and advisors.
Under the LTIP, we recognize the services we receive from our 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 the consolidated statement of income for the year.</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>Leases</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
determination of whether an arrangement contains a lease is based on the
substance of the arrangement at the inception date of whether the fulfillment
of the arrangement is dependent on the use of a specific asset or assets or the
arrangement conveys a right to use the asset.</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 lease is
classified as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership.  All other leases are classified as operating leases.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">A finance lease gives
rise to a depreciation expense for the asset, as well as an interest expense
for each year.  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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Capitalized
leased assets are depreciated over the shorter of the estimated useful life of
the asset or the lease term, if there is no reasonable certainty that we will
obtain ownership of the leased asset at the end of the lease term.</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>Revenue Recognition</i></b></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Revenues for services
are stated at amounts invoiced to customers, net of value-added tax, or VAT, or
overseas communication tax, or OCT, where applicable.  We provide wireless
communication, fixed line communication, and ICT services.  We provide such
services to mobile, business, residential and payphone customers.  Revenues
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 rendering
of service has occurred.  In certain circumstances, revenue is split into
separately identifiable components and recognized when the related components
are delivered in order to reflect the substance of the transactions.  The value
of components is determined using verifiable objective evidence.  Under certain
arrangements where the above criteria are met, but there is uncertainty
regarding the outcome of the transaction for which service was rendered,
revenue is recognized only to the extent of expenses incurred for rendering the
service, and such amount is determined to be recoverable.  We do not provide
our customers with the right to a refund.</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>Service Revenues</i></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>Subscriptions</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">We provide telephone and data
communication services under prepaid and postpaid payment arrangements.
Installation and activation-related fees and the corresponding costs, not
exceeding the activation revenue, are deferred and recognized over the expected
average periods of customer relationship for fixed line and cellular services.
Postpaid service arrangements include subscription fees, typically fixed
monthly fees, which are recognized over the subscription period on a pro-rata
basis.</p>

<p style='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>Air
time, traffic and value-added 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">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 year 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' style="margin-top:0;margin-bottom:0"><i>Knowledge Processing Solutions</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">Revenue is recognized when it is
probable that the economic benefits associated with the transactions will flow
to us and the amount of revenue can be measured reliably.  Advance customer
receipts that have not been recognized as revenue are recorded as advances from
customers and presented as a liability in the consolidated balance sheet.  If
the fee is not fixed or determinable, revenue is not recognized on those
arrangements until the customer payment is received.  For arrangements
requiring specific customer acceptance, revenue recognition is deferred until
the earlier of the end of the deemed acceptance period or until a written
notice of acceptance is received from the customer.  Revenue on services
rendered to customers whose ability to pay is in doubt at the time of
performance of services is also not recorded.  Rather, revenue is recognized
from these customers as payment is received.</p>

<p style='margin-left:.75in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.75in' style="margin-top:0;margin-bottom:0"><i>Incentives</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">We record insignificant commission
expenses 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 of 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:.75in;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>Non-service
Revenues</i></p>

<p style='margin-left:.75in;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>Handset
and equipment sales</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">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:.75in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Interest
income</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">Interest
income is recognized as it accrues on a time proportion basis taking into
account the principal amount outstanding and the effective interest rate.  The
majority of interest income represents interest earned from cash and cash
equivalents, short-term investments and investments in debt securities.</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_LINK106"></a><a name="OLE_LINK105"><b><i>Income Taxes</i></b></a></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.3in;text-indent:.2in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>Current income tax</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">Current
income tax assets and liabilities for the current and prior years are measured
at the amount expected to be recovered from or paid to the taxation
authorities.  The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted as at the balance sheet date.</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.3in;text-indent:.2in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>Deferred income tax</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">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;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">Deferred income tax liabilities are recognized for all
taxable temporary differences except: (1) when the deferred income tax
liability arises from the initial recognition of goodwill or 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 and (2) with respect to taxable temporary differences associated with
investments in subsidiaries, associates and interests in joint ventures, where
the timing of the reversal of the temporary differences can be controlled and
it is possible that the temporary differences will not reverse in the
foreseeable future.  Deferred income tax assets are recognized for all
deductible temporary differences, carryforward benefit 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 benefit of unused
tax credits and unused tax losses can be utilized except: (1) when the deferred
tax asset relating to the deductible temporary difference 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 and <br>
(2) with respect to deductible temporary differences associated with
investments in subsidiaries, associates and interests in joint ventures,
deferred tax assets are recognized only to the extent that it is probable that
the temporary differences will reverse in the foreseeable future and taxable
profit will be available against which the temporary differences can be
utilized.</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deferred income 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 income 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-top:0;margin-bottom:0">The carrying amount
of deferred income tax assets are 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.  Unrecognized deferred income tax assets are reassessed at each
balance sheet date and are recognized to the extent that it has become probable
that future taxable profit will allow the deferred income tax asset to be
recovered.</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 rates that are expected to apply in the year
when the asset is realized or the liability is settled, based on tax rates (and
tax laws) that have been enacted or substantively enacted as at the balance
sheet date.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Deferred income tax
relating to items recognized directly in equity is included in the related
equity account and not in the consolidated statement of income.</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 assets and liabilities are offset, if a legally enforceable right
exists to offset deferred income tax assets against deferred income tax
liabilities and the deferred income taxes relate to the same taxable entity and
the same taxation authority.</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>Investments
and Other Financial Assets and Liabilities</i></b></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Financial assets are categorized as financial assets
at fair value through profit or loss, loans and receivables, held-to-maturity
investments, or available-for-sale financial investments, as appropriate.  When
financial assets are recognized initially, they are measured at fair value,
plus, in the case of investments not at fair value through profit or loss,
directly attributable transaction costs.  We determine the category of its
financial assets on initial recognition and, where allowed and appropriate,
re-evaluate this designation at each financial year-end.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">All regular way
purchases and sales of financial assets are recognized on the trade date, which
is the date that we commit to purchase the asset. Regular way purchases or
sales are purchases or sales of financial assets that require delivery of
assets within the period generally established by regulation or convention in
the marketplace.</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>Day 1
profit</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Where the transaction price in a non-active market is
different to the fair value from other observable current market transactions
in the same instrument or based on a valuation technique whose variables include
only data from observable market, we recognize the difference between the
transaction price and fair value (a Day 1 profit) in the statement of income
unless it qualifies for recognition as some other type of asset.  In cases
where use is made of data which are not observable, the difference between the transaction
price and model value is only recognized in the consolidated statement of
income when the inputs become observable or when the instrument is derecognized.
For each transaction, we determine the appropriate method of recognizing the &#147;Day
1&#148; profit amount.</p>

<p style='margin-left:.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>Fair
value</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The fair value of investments that are actively traded
in organized financial markets is determined by reference to quoted market bid
prices at the close of business on the balance sheet date.  For investments
where there is no active market, fair value is determined using valuation
techniques.  Such techniques include using recent arm&#146;s&#150;length market
transactions; reference to the current market value of another instrument which
is substantially the same; discounted cash flow analysis or other valuation
models.</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>Financial
assets at fair value through profit or loss</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Financial assets at fair value through profit or loss
include financial assets held&#150;for&#150;trading and financial assets designated upon
initial recognition as at fair value through profit or loss.  Financial assets
are classified as held-for-trading if they are acquired for the purpose of
selling in the near term.  Derivatives, including separated embedded
derivatives, are also classified as held-for-trading unless they are designated
as effective hedging instruments.  Gains or losses on investments held&#150;for&#150;trading
are recognized in profit or loss.</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">Financial assets may
be designated at initial recognition as at fair value through profit or loss if
any of the following criteria are met: (i) the designation eliminates or significantly
reduces the inconsistent treatment that would otherwise arise from measuring
the assets and liabilities or recognizing gains or losses on them on a
different basis; or (ii) the assets and liabilities are part of a group of
financial assets which are managed and their performance evaluated on a fair
value basis, in accordance with a documented risk management strategy; or (iii)
the financial assets and liabilities contain an embedded derivative that would
need to be separately recorded.  An embedded derivative is separated from the
hybrid or combined contract if all the following conditions are met: (a) the
economic characteristics and risks of the embedded derivative are not closely
related to the economic characteristics and risks of the host contract; (b) a
separate instrument with the same terms as the embedded derivative would meet
the definition of a derivative and (c) the hybrid instrument is not recognized
at fair value through profit or 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">Subsequent reassessment is
prohibited unless there is a change in the terms of the contract that
significantly modifies the cash flows that otherwise would be required under
the contract, in which case reassessment is required.  We determine whether a
modification to cash flows is significant by considering the extent to which
the expected future cash flows associated with the embedded derivative, the
host contract or both have changed and whether the change is significant
relative to the previously expected cash flow on the contract.</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>Loans and
receivables</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Loans and receivables are non-derivative financial
assets with fixed or determinable payments that are not quoted in an active
market.  After initial measurement, loans and receivables are carried at
amortized cost using the effective interest method less any allowance for
impairment.  Gains and losses are recognized in profit or loss when the loans
and receivables are derecognized or impaired, as well as through the
amortization process.  Assets in this category are included in current assets,
except for maturities greater than 12 months after the balance sheet date,
which are classified as non-current assets.</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>Held-to-maturity
investments</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Non-derivative financial assets with fixed or
determinable payments and fixed maturities are classified as held-to-maturity
when we have the positive intention and ability to hold to maturity.  After
initial measurement, held-to-maturity investments are measured at amortized
cost using the effective interest rate method.  Gains and losses are recognized
in profit or loss when the investments are derecognized or impaired, as well as
through the amortization process.  Assets in this category are included under
current assets, except for maturities greater than 12 months after the balance
sheet date, which are classified as non-current assets.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Available-for-sale financial
investments</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Available-for-sale
financial investments are those non-derivative financial assets that are
designated as available-for-sale or are not classified in any of the three
preceding categories.  They are purchased and held indefinitely, and may be
sold in response to liquidity requirements or changes in market conditions.
After initial measurement, available-for-sale financial investments are
measured at fair value with unrealized gains or losses recognized directly in
equity until the investment is derecognized or determined to be impaired at
which time the cumulative gain or loss previously recorded in equity is
recognized in profit or loss.  They are included under non-current assets unless
we intend to dispose of the investment within 12 months of the balance sheet
date.</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>Impairment
of Financial Assets</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We assess at each balance sheet date whether a
financial asset or group of financial assets is impaired.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Financial assets carried at amortized
cost</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">For loans and receivables carried
at amortized cost, we assess whether objective evidence of impairment exists
individually for financial assets that are individually significant, or
collectively for financial assets that are not individually significant.  If we
determine that no objective evidence of impairment exists for individually
assessed financial asset, whether significant or not, we include the asset in a
group of financial assets with similar credit risk characteristics and
collectively assesses for impairment.  Those characteristics are relevant to
the estimation of future cash flows for groups of such assets by being
indicative of the debtors&#146; ability to pay all amounts due according to the
contractual terms of the assets being evaluated.  Assets that are individually
assessed for impairment and for which an impairment loss is, or continues to be
recognized, are not included in a collective assessment for impairment.</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">If there is objective evidence
that an impairment loss has been incurred, the amount of the loss is measured
as the difference between the asset&#146;s carrying amount and the present value of
the estimated future cash flows (excluding future credit losses that have not
been incurred).  The present value of the estimated future cash flows is
discounted at the financial asset&#146;s original effective interest rate.  If a
loan receivable has a variable interest rate, the discount rate for measuring
any impairment loss is the current effective interest rate, adjusted for the
original credit risk premium. The calculation of the present value of the
estimated future cash flows of a collateralized financial asset reflects the
cash flows that may result from foreclosure less costs for obtaining and
selling the collateral, whether or not foreclosure is probable.</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
carrying amount of the asset is reduced through the use of an allowance account
and the amount of loss is charged to the consolidated statement of income.
Interest income continues to be recognized based on the original effective
interest rate of the asset.  Loans and receivables, together with the
associated allowance accounts, are written off when there is no realistic
prospect of future recovery and all collateral has been realized.  If, in a
subsequent year, the amount of the estimated impairment loss decreases because
of an event occurring after the impairment was recognized, the previously
recognized impairment loss is reduced by adjusting the allowance account.  If a
future write-off is later recovered, any amount formerly charged is credited to
the income account.</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">For the purpose of a collective
evaluation of impairment, financial assets are grouped on the basis of such
credit risk characteristics as industry, past-due or collectibility status and
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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Future cash
flows in a group of financial assets that are collectively evaluated for
impairment are estimated on the basis of historical loss experience for assets
with credit risk characteristics.  Historical loss<b> </b>experience is
adjusted on the basis of current observable data to reflect the effects of
current conditions that did not affect the period at which the historical loss
experience is based and to remove the effects of conditions in the historical
period that do not exist currently.  Estimates of changes in future cash flows
reflect, and are directionally consistent with changes in related observable
data from period to period (such changes in unemployment rates, property
prices, commodity prices, payment status, or other factors that are indicative
of incurred losses and their magnitude).  The methodology and assumptions used
for estimating future cash flows are reviewed regularly by management to reduce
any differences between loss estimates and actual loss experience.</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>Available-</i><i>for-sale
financial investments</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 case of
equity investments classified as available-for-sale financial investments, an
objective evidence of impairment would include a significant or prolonged
decline in the fair value of the investments below its cost. </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">Where there
is evidence of impairment, the cumulative loss, measured as the difference
between the acquisition cost and the current fair value, less any impairment
loss on that financial asset previously recognized in the consolidated statement
of income, is removed from equity and recognized in the consolidated statement
of income.  Impairment losses on equity investments are not reversed through
the consolidated statement of income.  Increases in fair value after impairment
are recognized directly 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">In the case of debt instruments
classified as available-for-sale, impairment is assessed based on the same
criteria as financial assets carried at amortized cost.  Interest continues to
be accrued at the original effective interest rate on the reduced carrying
amount of the asset and is recorded as part of &#147;Interest income&#148; account in the
consolidated statement of income.  If, in subsequent year, the fair value of a
debt instrument increased and the increase can be objectively related to an
event occurring after the impairment loss was recognized in the consolidated statement
of income, the impairment loss is reversed through the consolidated statement
of income.</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>Financial
liabilities</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:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Interest</i><i>-bearing
loans and borrowings</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">All loans
and borrowings are initially recognized at fair value less directly
attributable transaction costs.  After initial recognition, interest bearing
loans and borrowings are subsequently measured at amortized cost using the
effective interest rate method.</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 and losses are recognized in
profit or loss when the liabilities are derecognized as well as through the
amortization process.</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>Financial liabilities at fair
value through profit or loss</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">Financial liabilities at fair
value through profit or loss include financial liabilities held&#150;for&#150;trading and
financial liabilities designated upon initial recognition as at fair value
through profit or 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">Financial liabilities are
classified as held-for-trading if they are acquired for the purpose of selling
in the near term. Derivatives, including separated embedded derivatives are
also classified as held-for-trading unless they are designated as effective
hedging instruments.</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 on liabilities
held-for&#150;trading and those designated at fair value through profit or loss are
recognized in profit or loss.</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>Derecognition
of Financial Assets and Liabilities</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:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Financial
assets</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">A financial
asset (or, where applicable, a part of a financial asset or part of a group of
similar financial assets) is derecognized when:  (1) the rights to receive cash
flows from the asset have expired; (2) we retain the right to receive cash
flows from the asset, but have assumed an obligation to pay them in full
without material delay to a third party under a &#147;pass through&#148; arrangement; or
(3) we have transferred our right to receive cash flows from the asset and
either (a) have transferred substantially all the risks and rewards of the
asset, or (b) have neither transferred nor retained substantially all the risks
and rewards of the asset, but have transferred control of the asset.</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 we have transferred our
right to receive cash flows from an asset and have neither transferred nor
retained substantially all the risks and rewards of the asset nor transferred
control of the asset, the asset is recognized to the extent of our continuing
involvement in the asset.  Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that we
could be required to repay.</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 continuing involvement takes
the form of a written and/or purchased option (including a cash-settled option
or similar provision) on the transferred asset, the extent of our continuing
involvement is the amount of the transferred asset that we may repurchase,
except that in the case of a written put option (including a cash-settled
option or similar provision) on an asset measured at fair value, the extent of
our continuing involvement is limited to the lower of the fair value of the
transferred asset and the option exercise price.</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>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:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">A financial
liability is derecognized when the obligation under the liability is discharged
or cancelled or has expired.</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 an existing financial
liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as a derecognition of the
original liability and the recognition of a new liability, and the difference
in the respective carrying amounts is recognized in the consolidated statement
of income.</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>Offsetting financial instruments</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">Financial assets and financial
liabilities are offset and the net amount reported in the consolidated balance
sheet if, and only if, there is a currently enforceable legal right to offset
the recognized amounts and there is an intention to settle on a net basis, or
to realize the asset and settle the liability simultaneously.  This is not
generally the case with master netting agreements, and the related assets and
liabilities are presented gross in the consolidated balance sheet.</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>Derivative Financial
Instruments and Hedging</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">We use derivative financial
instruments, such as long-term currency swaps, foreign-currency options, forward
currency contracts and interest rate swaps, to hedge our risks associated with
interest rate and foreign currency fluctuations.  Such derivative financial
instruments are initially recognized at fair value on the date on which a
derivative contract is entered into and are subsequently re-measured at fair
value.  Derivatives are carried as assets when the fair value is positive and
as liabilities when the fair value is negative.</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">Any gains
or losses arising from changes in fair value on derivatives during the year
that do not qualify for hedge accounting are taken directly to the losses or
gains on derivative financial instruments account in the consolidated statement
of income.</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 fair
value of forward currency contracts is calculated by reference to current
forward exchange rates for contracts with similar maturity profiles.  The fair
value of long-term currency swaps, foreign currency options and interest rate
swap contracts is determined using applicable valuation techniques.  See <i>Note
26 &#150; Financial Assets and Liabilities</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">For the
purpose of hedge accounting, hedges are classified as: (1) fair value hedges
when hedging the exposure to changes in the fair value of a recognized
financial asset or liability or an unrecognized firm commitment (except for
foreign-currency risk); (2) cash flow hedges when hedging exposure to
variability in cash flows that is either attributable to a particular risk
associated with a recognized financial asset or liability or a highly probable
forecast transaction or the foreign-currency risk in an unrecognized firm
commitment; or (3) hedges of a net investment in a foreign operation.</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">At the
inception of a hedge relationship, we formally designate and document the hedge
relationship to which we wish to apply hedge accounting and the risk management
objective and strategy for undertaking the hedge.  The documentation includes
identification of the hedging instrument, the hedged item or transaction, the
nature of the risk being hedged and how we will assess the hedging instrument&#146;s
effectiveness in offsetting the exposure to changes in the hedged item&#146;s fair
value or cash flows attributable to the hedged risk.  Such hedges are expected
to be highly effective in achieving offsetting changes in fair value or cash
flows and are assessed on an on-going basis to determine that they actually
have been highly effective throughout the financial reporting periods for which
they are designated.  For situation when that hedged item is a forecast
transaction, we assess whether transaction is highly probable and prevent an
exposure to variations in cash flows that could ultimately affect the
consolidated statement 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">Hedges which meet the strict
criteria for hedge accounting are accounted for as follows:</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>Fair
value hedges</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 change
in the fair value of a hedging derivative is recognized in the consolidated
statement of income.  The change in the fair value of the hedged item
attributable to the risk being hedged is recorded as part of the carrying value
of the hedged item and is also recognized in the consolidated statement 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">The fair value for financial
instruments traded in active markets at the balance sheet date is based on
their quoted market price or dealer price quotations (bid price for long
positions and ask price for short positions), without any deduction for
transaction costs.  When current bid and asking prices are not available, the price
of the most recent transaction provides evidence of the current fair value as
long as there has not been a significant change in economic circumstances since
the time of the transaction.  For all other financial instruments not listed in
an active market, the fair value is determined by using appropriate valuation techniques.
Valuation techniques include net present value techniques, comparison to
similar instruments for which market observable prices exist, options pricing
models, and other relevant valuation models.</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">When an unrecognized firm
commitment is designated as a hedged item, the subsequent cumulative change in
the fair value of the firm commitment attributable to the hedged risk is
recognized as financial asset or liability with a corresponding gain or loss
recognized in the consolidated statement of income.  The changes in the fair
value of the hedging instrument are also recognized in the consolidated
statement of income.</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Cash flow
hedges</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
effective portion of the gain or loss on the hedging instrument is recognized
directly in equity, while any ineffective portion is recognized immediately in
the consolidated statement of income.</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">Amounts
taken to equity are transferred to the consolidated statement of income when
the hedged transaction affects the consolidated statement of income, such as
when the hedged financial income or financial expense is recognized or when a
forecast sale occurs.  Where the hedged item is the cost of a non-financial
asset or non-financial liability, the amounts taken to equity are transferred
to the initial carrying amount of the non-financial asset or liability.</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">If the
forecast transaction or firm commitment is no longer expected to occur, amounts
previously recognized in equity are transferred to the consolidated statement
of income.  If the hedging instrument expires or is sold, terminated or
exercised without replacement or rollover, or if its designation as a hedge is
revoked, amounts previously recognized in equity remain in equity until the
forecast transaction or firm commitment occurs.</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>Hedges of
a net investment</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">Hedges of a
net investment in a foreign operation, including a hedge of a monetary item
that is accounted for as part of the net investment, are accounted for in a way
similar to cash flow hedges.  Gains or losses on the hedging instrument
relating to the effective portion of the hedge are recognized directly in equity
while any gains or losses relating to the ineffective portion are recognized in
the consolidated statement of income.  On disposal of the foreign operation,
the cumulative value of any such gains or losses recognized directly in equity
is transferred to the consolidated statement of income.</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>New
Accounting Standards Subsequent to 2007</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">Set forth
below are the new IFRS accounting statements that will become effective
subsequent to December 31, 2007:</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><i>IFRS 2, &#147;Share-based Payments &#150; Vesting Conditions and Cancellations</i>&#148;.
</b>This amendment to IFRS 2 was published in January 2008 and will become
effective for financial years beginning on or after January 1, 2009.  This
standard restricts the definition of &#147;vesting condition&#148; to a condition that
includes an explicit or implicit requirement to provide services.  Any other
conditions are non-vesting conditions, which have to be taken into account to
determine the fair value of the equity instruments granted.  In the case that
an award does not vest as the result of a failure to meet a non-vesting
condition that is within the control of either the entity or the counterparty,
this must be accounted for as a cancellation.  We have not entered into
share-based payment schemes with non-vesting conditions attached and, therefore,
do not expect significant implications on our accounting for share-based
payments.</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><i>IFRS 3 (Revised), &#147;Business Combinations&#148;, and IAS 27
(Revised), &#147;Consolidated and Separate Financial Statements&#148;.</i></b>  The
revised standards were issued in January 2008 and will become effective for
financial years beginning on or after July 1, 2009.  IFRS 3 (Revised)
introduces a number of changes in the accounting for business combinations that
will impact the amount of goodwill recognized, the reported results in the period
in which an acquisition occurs, and future reported results.  IAS 27 (Revised)
requires that a change in the ownership interest of a subsidiary is accounted
for as an equity transaction.  Therefore, such a change will have no impact on
goodwill, nor will it give raise to a gain or loss.  Furthermore, the amended
standard changes the accounting for losses incurred by the subsidiary as well
as the loss of control of a subsidiary.  The changes introduced by IFRS 3
(Revised) and IAS 27 (Revised) must be applied prospectively and will affect
future acquisitions and transactions with minority interests.</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><i>IFRS 8, &#147;Operating Segments&#148;.  </i></b>This standard will
become effective for financial years beginning on or after January 1, 2009 and
will replace IAS 14.  This standard requires an entity to report financial and
descriptive information about our reportable segments.  The requirements of
this standard will be included in our consolidated financial statements for the
fiscal year ending December 31, 2009.</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><i>IAS 1 (Revised), &#147;Presentation of Financial Statements&#148;.  </i></b>This
standard will become effective for financial years beginning on or after
January 1, 2009.  IAS 1 has been revised to enhance the usefulness of
information presented in the consolidated financial statements.  The key
changes are: (1) the statement of changes in equity includes only transactions
with owners and all non-owner changes are presented in equity as a single line
with details included in a separate statement.  Owners are defined as &#147;holders
of instruments classified as equity&#148;; (2) the introduction of a new statement
of comprehensive income that combines all items of income and expense
recognized in profit or loss together with &#147;other comprehensive income&#148;.  The
revisions specify what is included in other comprehensive income, such as gains
and losses on available-for-sale financial investments, actuarial gains and
losses on defined benefit pension plans and changes in the asset revaluation
reserve.  Entities can choose to present all items in one statement, or to
present two linked statements, a separate consolidated statement of income and
a statement of comprehensive income; (3) amounts reclassified to profit or loss
that were previously recognized in other comprehensive income (for example, previously
unrealized gains on available-for-sale financial investments that are sold)
must be separately disclosed, either in the statement of comprehensive income
itself or in the notes; (4) entities must disclose the income tax relating to
each component of other comprehensive income.  This can be presented in the
statement of comprehensive income itself or in the notes; (5) when an entity
restates its financial statements or retrospectively applies a new accounting
policy, a statement of financial position must be presented as at the beginning
of the earliest comparative period; (6) dividends to equity holders can now be
shown only in the statement of changes in equity or in the notes; and (7) the
introduction of new terminology, replacing &#147;balance sheet&#148; with &#147;statement of
financial position&#148; and &#147;cash flow statement&#148; with &#147;statement of cash flows&#148;,
although the titles are not obligatory.  The requirements of this standard will
be included in our consolidated financial statements for the fiscal year ending
December 31, 2009.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><i>Amendments to IAS 32 and IAS 1, &#147;Puttable Financial
Instruments&#148;.</i>  </b>Amendments to IAS 32 and IAS 1 were issued in February
2008 and will become effective for financial years beginning on or after
January 1, 2009.  The amendment to IAS 32 requires certain puttable financial
instruments and obligations arising on liquidation to be classified as equity
if certain criteria are met.  It also requires disclosure of certain
information relating to puttable instruments classified as equity.</p>

<p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><i>IAS 23, &#147;Borrowing Costs&#148; &#150; Revised.  </i></b>This standard
will become effective for financial years beginning on or after January 1,
2009.  The revised standard eliminates the option of expensing all borrowing
costs and requires borrowing costs to be capitalized if they are directly
attributable to the acquisition, construction or production of a qualifying
asset as part of the cost of those assets.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><i>IFRIC 11, &#147;IFRS 2, Group and Treasury Share Transactions&#148;.
</i></b>This interpretation is effective for financial years beginning on or
after March 31, 2007.  This<b><i> </i></b>interpretation addresses issues relating
to whether transactions should be accounted for as equity-settled or as
cash-settled under IFRS 2 and issues concerning share-based payment arrangement
involving entities within the same group.  The requirements of this interpretation
will be included in our consolidated financial statements for our fiscal year
beginning January 1, 2008.</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:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><i>IFRIC 12, &#147;Service Concession Arrangements&#148;. </i></b> This interpretation
has become effective for financial years beginning on or after January 1,
2008.  This interpretation applies to contractual arrangements whereby a
private sector party participates in the development, financing, operation and
maintenance of infrastructure for public sector services.  This interpretation
is not relevant to our current operations.</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:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><i>IFRIC 13, &#147;Customer Loyalty Programmes&#148;.  </i></b>This interpretation
will become effective for financial years beginning on or after July 1, 2008.
This interpretation requires that loyalty award credits granted to customers as
part of a sales transaction are accounted for as a separate component of the
sales transactions.  The consideration received in the sales transactions is
allocated between the loyalty award credits and the other components of the
sale.  The amount allocated to the loyalty award credits is determined by
reference to their fair value and is deferred until the awards are redeemed or
the liability is otherwise extinguished.  If the cost of fulfilling the awards
is expected to exceed the consideration received, the entity will have an
onerous contract and a liability for the excess must be recognized.</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:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<b><i>IFRIC 14, &#147;IAS 19 &#150; The Limit on a Defined Benefit Asset,
Minimum Funding Requirements and their Interaction&#148;.</i></b>  This interpretation
has become effective for financial years beginning on or after January 1,
2008.  IFRIC 14 addresses how to assess the limit under <i>IAS 19, &#147;Employee
Benefits&#148;</i>, on the amount of the pension scheme surplus that can be
recognized as an asset in our consolidated balance sheet, in particular, when a
minimum funding requirement exists.  The specific issues addressed by the
interpretation are: (1) a refund is available to the entity only if there is an
unconditional right to the refund and such refund is measured as the amount of
the surplus at the balance sheet date less any associated costs; (2) when there
is an unconditional right to a refund and there is no minimum funding
requirement, an entity determines the benefit available as the lower of the
surplus in the plan and the present value of the future service cost to the
entity; (3) when a minimum funding requirement exists, the benefit available is
the present value of the estimated future service cost less the estimated
minimum funding contribution required in respect of the future accrual of
benefits in that year; and (4) if an entity has a minimum funding requirement
to pay additional contributions, the entity must determine whether the
contributions will be available as a refund or reduction in future contributions
after they are paid into the plan.  If not, a liability is recognized when the
obligation arises.  The requirements of this interpretation will be included in
our consolidated financial statements for our financial year beginning January
1, 2008.</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 expect
that the adoption of the pronouncements listed above will have no significant
impact on our consolidated financial statements in the period of our initial
application, except that management is still evaluating the impact of IFRIC 11
and 13 and IFRS 8.</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='margin-left:.25in;text-align:justify;text-indent:
- -.25in;page-break-after:avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b><b>Management&#146;s Use of Judgments, Estimates and
Assumptions</b></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The preparation of our consolidated financial
statements in conformity with IFRS requires us to make judgments, estimates and
assumptions that affect the reported amounts of our revenues, expenses, assets
and liabilities and disclosure of contingent liabilities at the reporting date.
Due to uncertainties inherent in these assumptions and estimates could result
in outcomes that could require a material adjustment to the carrying amount of
the asset or liabilities affected in the future.</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>Judgments</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">In the
process of applying the PLDT Group&#146;s accounting policies, management has made
the following judgments, apart from those including estimations, which have the
most significant effect on the amount recognized in the consolidated financial
statements.</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>Determination
of functional currency</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The functional
currencies of the entities under PLDT Group are the currency of the primary
economic environment in which each entity operates.  It is the currency that
mainly influences the revenue and cost of rendering services.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Based on the economic
substance of the underlying circumstances relevant to the PLDT Group, the
functional and presentation currency of the PLDT Group (except for SCH, SGP, 3rd
Brand, Mabuhay Satellite, PLDT Global, Digital Paradise Thailand and SPi and certain of its subsidiaries) is the Philippine peso.  The functional currency
of Mabuhay Satellite, PLDT Global, SPi and certain of its subsidiaries is the
U.S. dollar; Thai baht for Digital Paradise Thailand and Singapore dollar for SCH,
SGP and 3rd Brand.</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>Leases</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We have various lease
agreements as a lessee in respect of our certain equipment and properties.  We
evaluate whether significant risks and rewards of ownership of the leased
properties are transferred to us or retained at the lessor based on <i>IAS 17</i>,<i>
&#147;Leases&#148;</i>, which requires us to make judgments and estimates of transfer of
risk and rewards of ownership of the leased properties.  Total lease expense
arising from operating leases amounted to Php2,762 million and Php2,257 million
for the years ended December 31, 2007 and 2006, respectively.  Total finance
lease obligations as at December 31, 2007 and 2006 amounted to Php496 million
and Php1,030 million, respectively.  See <i>Note 18 &#150; Interest-bearing
Financial Liabilities, Note 24 &#150; Contractual Obligations and Commercial
Commitments </i>and<i> Note 26 &#150; Financial Assets and Liabilities</i>.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Determination of fair values of
financial assets and liabilities</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We carry certain of
our financial assets and liabilities at fair value, which requires extensive
use of accounting estimates and judgments for the fair values of financial
assets and liabilities.  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>26 &#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 and volatility rates), the amount of changes in
fair value would differ if we utilized a different valuation methodology.  Any
change in fair value of these financial assets and liabilities would directly
affect our consolidated statement of income and consolidated statement of
changes in equity.</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">Total fair
value of financial assets and liabilities as at December 31, 2007 amounted to
Php46,661 million and Php111,086 million, respectively, while the total fair
value of financial assets and liabilities as at December 31, 2006 amounted to
Php36,517 million and Php124,801 million, respectively.  See <i>Note 26 &#150;
Financial Assets and Liabilities</i>.</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>Legal
contingencies</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 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 25 &#150; Provisions and Contingencies</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"><b><i>Estimates and Assumptions</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 key assumptions concerning the
future and other key sources of estimation uncertainty at the balance sheet
date that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year are
discussed below:</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>Estimating
useful lives of property, plant and equipment</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We estimate the useful lives of our property, plant
and equipment based on the periods over which our assets are expected to be
available for use.  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.  The
estimated useful lives of our property, plant and equipment are reviewed at
least at each financial year-end and are updated if expectations differ from
previous estimates due to physical wear and tear, technical or commercial
obsolescence and legal or other limitations on the use of our assets.  It is
possible, however, that future results of operations could be materially
affected by changes in our estimates brought about by changes in the 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.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We recognized an additional depreciation charge of
Php796 million and Php8,624 million in 2007 and 2006, respectively, due to a
change in the estimated useful lives of certain of our network assets owing to
continuing network upgrade and expansion.  The acceleration of depreciation is
expected to result in a reduction of future monthly depreciation charge
amounting to Php10 million going forward.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total carrying values of property, plant and
equipment, net of accumulated depreciation and amortization amounted to Php159,414
million and Php164,190 million as at December 31, 2007 and 2006, respectively.  See
<i>Note 8 &#150; Property, Plant and Equipment </i>and <i>Note 26 &#150; Financial Assets
and Liabilities</i>.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Investment
properties</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We have adopted the fair value approach in determining
the carrying value of our investment properties.  We opted to rely on
independent appraisers in determining the fair values of our investment
properties, and such fair values were determined based on recent prices of
similar properties, with adjustments to reflect
any changes in economic conditions since the date of those transactions.  The
amounts and timing of recorded changes in fair value for any period would
differ if we made different judgments and estimates or utilized a different
basis for determining fair value.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Total carrying values
of our investment properties as at December 31, 2007 and 2006 amounted to
Php577 million and Php587 million, respectively.  See <i>Note 10 &#150;
Investment Properties </i>and <i>Note 26 &#150; Financial Assets and Liabilities</i>.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Goodwill
and intangible assets</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our consolidated financial statements and results of
operations reflect acquired businesses after the completion of the respective
acquisition.  We account for the acquired businesses using the purchase method of accounting which requires
extensive use of accounting estimates and judgments to allocate the purchase
price to the fair market values of the acquiree&#146;s identifiable assets and
liabilities at the acquisition date.  Any
excess in the purchase price over the estimated fair market values of the net
assets acquired is recorded as goodwill in the balance sheet.  Our business acquisitions have resulted in goodwill
and intangible assets, which are subject to periodic impairment test and
amortization, respectively.  See <i>Note 11 &#150; Goodwill and Intangible Assets</i>.
Thus, the numerous judgments made in
estimating the fair market value to be assigned to the acquiree&#146;s assets and
liabilities can materially affect our results of operations.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total carrying values of goodwill and intangible
assets as at December 31, 2007 and 2006 amounted to Php11,721 million and
Php12,214 million, respectively.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Realizability of deferred income
tax assets</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We review the
carrying amounts of deferred income tax assets at each balance sheet date and
reduce these to the extent that it is no longer probable that sufficient
taxable income will be available to allow all or part of the deferred income
tax assets to be utilized.  Our assessment on the recognition of deferred
income tax assets on deductible temporary differences is based on the level and
timing of forecasted taxable income of the subsequent reporting periods.  This
forecast is based on our past results and future expectations on revenues and
expenses as well as future tax planning strategies.  However, there is no
assurance that we will generate sufficient taxable income to allow all or part
of our deferred income tax assets to be utilized.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Based on the above assessment, we have not recognized certain
of our deferred income tax assets as at December 31, 2007 and 2006 amounting to
Php1,122 million and Php299 million, respectively.  Total deferred tax assets
as at December 31, 2007 and 2006 amounted to Php13,757 million and Php20,538
million, respectively, while total deferred tax liabilities as at December 31,
2007 and 2006 amounted to Php2,066 million and Php402 million, respectively.  See
<i>Note 6 &#150; Income Tax</i>.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Estimating
allowance for doubtful accounts</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We estimate the
allowance for doubtful accounts related to our trade receivables that are
specifically identified as doubtful of collection.  The level of allowance is
evaluated by management on the basis of factors that affect the collectibility
of the accounts.  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 credit status based on third
party credit reports and known market factors, to record specific reserves for
customers against amounts due in order to reduce our receivables to amounts
that we expect to collect.  These specific reserves are re-evaluated and
adjusted as additional information received affect the amounts estimated.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">In addition to
specific allowance against individually significant receivables, we also assess
a collective impairment allowance against credit exposures of our customer
which were grouped based on common credit characteristic, which, although not
specifically identified as requiring a specific allowance, have a greater risk
of default than when the receivables were originally granted to customers.
This collective allowance is based on historical loss experience using various
factors such as historical performance of the customers within the collective
group, deterioration in the markets in which the customers operate, and
identified structural weaknesses or deterioration in the cash flows of
customers.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Impairment provision
for receivable recognized in consolidated statements of income amounted to
Php417 million and Php736 million for the years ended December 31, 2007 and
2006, respectively.  Trade and other receivables, net of impairment, amounted
to Php12,645 million and Php10,158 million as at December 31, 2007 and 2006,
respectively.  See <i>Note 5 &#150; Income and Expenses, Note 14 &#150; Trade and Other
Receivables</i> and <i>Note 26 &#150; Financial Assets and Liabilities</i>.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Estimation
of pension cost and other retirement benefits</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">The 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 23 &#150; Share-based Payments and Employee Benefits</i>
and include, among other things, discount rates, expected returns on plan
assets and rates of compensation increases.  Actual results that differ from
our assumptions are recognized as income or expense when the net cumulative
unrecognized actuarial gains and losses at the end of the previous reporting
period exceed 10% of the higher of the defined benefit obligation and the fair
value of plan assets at that date.  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.  Total pension benefit costs amounted to Php1,773
million and Php1,003 million for the years ended December 31, 2007 and 2006,
respectively.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Unrecognized net
actuarial gain as at December 31, 2007 amounted to Php1,344 million and unrecognized
net actuarial loss as at December 31, 2006 amounted to Php4,657 million.  The
accrued benefit costs as at December 31, 2007 and 2006 amounted to Php2,985
million and Php2,888 million, respectively.  See <i>Note 23 &#150; Share-based
Payments and Employee Benefits</i>.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Share-based payment transactions</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our LTIP grants 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 the results of operations
for the year. The assumptions and estimates are described in <i>Note 23 &#150; Share-based
Payments and Employee Benefits</i> and include, among other things, annual
stock volatility, risk free interest rate, remaining life, and the fair value
of common stock.  While management believes that the assumptions and estimates
used are reasonable and appropriate, significant differences in our actual
experience or significant changes in the assumptions may materially affect the
stock compensation costs charged to operations.  The fair value of the LTIP
recognized as an expense for the years ended December 31, 2007 and 2006
amounted to Php1,448 million and Php3,150 million, respectively.  As at
December 31, 2007 and 2006, outstanding LTIP liability amounted to Php1,494
million and Php5,030 million, respectively.  See <i>Note 5 &#150; Income and
Expenses</i> and <i>Note 23 &#150; Share-based Payments and Employee Benefits</i>.</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Asset
retirement 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">Asset
retirement obligations are recognized in the period in which they are incurred
if a reasonable estimate of fair value can be made. This requires an estimation
of the cost to restore/dismantle on a per square meter basis, depending on the
location, and is based on the best estimate of the expenditure required to
settle the obligation at the future restoration/dismantlement date, discounted at
the balance sheet date using a pre-tax rate that reflects the current market
assessment of the time value of money and, where appropriate, the risk specific
to the liability.  Total provision for asset retirement obligations amounted to
Php952 million and Php831 million as at December 31, 2007 and 2006,
respectively.  See <i>Note 8 &#150; Property, Plant and Equipment</i> and <i>Note 19
&#150; Deferred Credits and Other Noncurrent Liablities</i>.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Asset
impairment</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">IFRS requires that an impairment review be performed
when certain impairment indicators are present.  In the case of goodwill, at a
minimum, such asset is subject to an annual impairment test and more frequently
whenever there is an indication that such asset may be impaired.  This requires
an estimation of the value in use of the cash-generating units to which the
goodwill is allocated.  Estimating the value in use requires us to make an
estimate of the expected future cash flows from the cash-generating unit and to
choose a suitable discount rate in order to calculate the present value of
those cash flows.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Determining the fair values 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 consolidated financial statements.
Future events could cause us to conclude that property, plant and equipment,
investments and intangible assets associated with an acquired business are
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-top:0;margin-bottom:0">The preparation of
estimated future cash flows involves significant judgments 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 IFRS.
 Total impairment charges for the years ended December 31, 2007 and 2006
amounted to Php1,317 million and Php2,766 million, respectively.  See <i>Note 4
&#150; Segment Information </i>and <i>Note</i> 5 &#150; <i>Income and Expenses</i>.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The carrying values
of our property, plant and equipment, investments in associates, goodwill and
intangible assets, trade and other receivables and inventories and supplies are
separately disclosed in <i>Notes 8, 9, 11, 14 </i>and<i> 15</i>, respectively.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Revenue
recognition</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our 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='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our agreements with domestic and foreign carriers for
inbound and outbound traffic subject to settlements require traffic
reconciliations before actual settlement is done, which may not be the actual
volume of traffic as measured by us.  Initial recognition of revenues is based
on our observed traffic adjusted by our normal experience adjustments, which
historically are not material to our consolidated financial statements.
Differences between the amounts initially recognized and the actual settlements
are taken up in the accounts upon reconciliation.  However, there is no
assurance that such use of estimates will not result in material adjustments in
future periods.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Revenues under a
multiple element arrangement specifically applicable to our wireless business
are split into separately identifiable components and recognized when the
related components are delivered in order to reflect the substance of the
transaction.  The fair value of components is determined using verifiable
objective evidence.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Under certain arrangements with
our BPO services, if there is uncertainty regarding the outcome of the transaction
for which service was rendered, revenue is recognized only to the extent of
expenses incurred for rendering the service and such amount is determined to be
recoverable.</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>Customer
Relationship</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">We recognize our revenues from
installation and activation related fees and the corresponding costs over the
expected average periods of customer relationship for fixed line and cellular
services.  We estimate the expected average period of customer relationship
based on our most recent churn-rate analysis.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div style='border:none;border-top:solid windowtext 1.0pt;padding:1.0pt 0in 0in 0in'>

<p style='line-height:50%;page-break-after:avoid;border:none;
padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style='margin-left:.25in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0"><b>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b><b>Segment Information</b></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Operating segments are components of the PLDT Group that
engage in business activities from which they 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 how
resources are to be allocated to the segment and assess their performances, and
for which discrete financial information are 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-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">We have organized our business into three main
segments:</p>

<p style='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;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Wireless &#150; wireless telecommunications services provided through
our cellular service providers namely, Smart and Piltel, SBI, our wireless
broadband provider, and Wolfpac, our wireless content operator, and Mabuhay
Satellite and ACeS Philippines, our wireless broadband satellite and other
service operators;</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Fixed Line &#150; fixed line telecommunications services primarily
provided through PLDT.  We also provide fixed line services through PLDT&#146;s
subsidiaries ClarkTel, SubicTel, Maratel, Piltel, BCC, PLDT Global and SNMI,
which together account for approximately 3% of our consolidated fixed line
subscribers; and</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
ICT &#150; information and communications infrastructure and services
for internet applications, internet protocol-based solutions and multimedia
content delivery provided by ePLDT; customer interaction services (formerly
referred to as call center business) provided under the umbrella brand name <i>ePLDT
Ventus</i>, including Ventus, Parlance and Vocativ; knowledge processing solutions
services (formerly referred to as business process outsourcing) provided through
the SPi Group (consolidated since July 11, 2006); and internet access and
online gaming services provided by ePLDT&#146;s subsidiaries Infocom, Digital
Paradise, Digital Paradise Thailand, netGames, Airborne Access and Level Up!.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Transfer prices between business
segments are set on terms similar to transactions with third parties.  Segment
revenue, segment expense and segment result include transfers between business
segments.  These transfers are eliminated upon consolidation.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Most of our revenues
are derived from our operations within the Philippines.</p>

<p 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, results of operations and cash flows of our reportable segments as
at and for the years ended December 31, 2007 and 2006 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:96.08%;margin-left:.25in;border-collapse:collapse;width:96.08% !msorm;
 border-collapse:collapse !msorm'>

 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Wireless</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Fixed Line</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>ICT</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style=';text-align:center' style="margin-top:0;margin-bottom:0"><b>Inter-segment Transactions</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style=';text-align:center' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 <p align=right style='margin-right:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Total</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-left:2.7in;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=5 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-left:.05pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=6 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:8.6pt;margin-bottom:.0001pt;text-indent:-8.6pt' style="margin-top:0;margin-bottom:0"><b><i>As at and for the year ended December 31, 2007</i></b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>Income</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Service revenues</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">86,497</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">48,551</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,055</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(9,627)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">135,476</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">External party</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">86,065</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">39,836</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">9,575</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">135,476</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Inter-segment transactions</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">432</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">8,715</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">480</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(9,627)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Foreign exchange gains &#150; net </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,649</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,479</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(138)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7,990</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Non-service revenues (Note 5)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,800</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 281</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 267</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(122)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,226</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">External party</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,800</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">281</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">145</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,226</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Inter-segment transactions</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">122</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(122)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Interest income</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,186</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">296</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">21</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,503</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Other income</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 973</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,190</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 594</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(90)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,667</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">External party</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">939                                       </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,140</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">588</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,667</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Inter-segment transactions</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">34</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(90)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Segment income</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">94,105</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">56,797</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,799</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(9,839)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">151,862</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Result</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Income (loss) before income
 tax</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">47,346</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,877</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(211)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">69</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">58,081</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Provision for (benefit from) income tax
 (Notes 2 and 6)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">15,566</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,358</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(117)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">18,807</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Net income (loss) for the year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">31,780</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7,519</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(94)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">  69</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">39,274</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Assets and
 liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">90,708</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">180,360</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">18,290</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(62,957) </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">226,401</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Deferred income tax assets (Notes 2, 6 and 26)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,640</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12,040</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">77</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">13,757</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Total assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">92,348</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">192,400</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">18,367</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(62,957)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">240,158</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Segment liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">50,828</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">78,323</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,697</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(9,101)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">125,747</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Deferred income tax liabilities (Notes 2, 6 and 26)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,571</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">495</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,066</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Total liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">52,399</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">78,323</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,192</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(9,101)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">127,813</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Cash flows</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Net cash provided by (used in):</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:
 0in;margin-left:22.5pt;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Operating
 activities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">49,616</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">25,274</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,529</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">77,418</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:
 0in;margin-left:22.5pt;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Investing
 activities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(19,915)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">26,092</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2,687)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(34,809)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(31,319)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:0in;margin-bottom:
 0in;margin-left:22.5pt;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Financing
 activities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(34,635)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(45,385)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">391</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">34,810</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(44,819)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-bottom:0in;margin-bottom:.0001pt' style="margin-top:0;margin-bottom:0">Other
 segment information</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">14,259</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">9,887</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">678</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">24,824</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Depreciation and amortization (Note 8)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">12,202</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">15,477</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">934</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">28,613</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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 </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,393</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,288</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">33</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,714</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Provisions</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">666</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 666</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Asset impairment (Notes 3, 5, 8, 9 and 11)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">563</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">43</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">711</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,317</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.8pt' style='page-break-inside:
 avoid !msorm;height:4.8pt !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;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;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;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;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;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;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;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;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;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;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:12.0pt'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:13.1pt;margin-bottom:.0001pt;text-indent:-13.1pt' style="margin-top:0;margin-bottom:0"><b><i>As at and for the year ended December 31,
 2006</i></b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Income</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Service revenues</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">78,395</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">49,174</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,337</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(8,919)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">124,987</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">External party</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">77,832</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">41,299</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,856</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">124,987</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Inter-segment transactions</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">563</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7,875</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">481</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(8,919)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Foreign exchange gains &#150; net</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,722</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,210</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(109)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,823</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Non-service revenues (Note 5)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,010</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">  79</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 553</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(122)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,520</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">External party</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,010</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">79</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">431</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,520</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Inter-segment transactions</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">122</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(122)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Interest income</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,197</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">441</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,654</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Other income</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 706</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,006</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 128</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(100)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,740</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">External party</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">671</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,943</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">126</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,740</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Inter-segment transactions</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">63</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(100)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Segment income</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">84,030</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">57,910</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,925</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(9,141)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">139,724</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Result</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Income (loss) before income tax</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">36,471</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,127</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(349)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">38,249</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Provision for (benefit from) income tax
 (Notes 2 and 6)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,344</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(639)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(37)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,668</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Net income (loss) for the year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">30,127</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,766</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(312)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">32,581</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Assets and
 liabilities</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:11.25pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:11.25pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Segment assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">86,037</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">182,887</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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">17,431</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(64,989)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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">221,366</p>
 </td>
 </tr>
 <tr style='height:11.25pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.25pt'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Deferred income tax assets (Notes 2, 6 and 26)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,645</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">14,834</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">59</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 11.25pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">20,538</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Total assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">91,682</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">197,721</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">17,490</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(64,989)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">241,904</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Segment liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">49,751</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">91,874</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,396</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6,372)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">138,649</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Deferred income tax liabilities (Notes 2, 6 and 26)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">396</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 402</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Total liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">49,757</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">91,874</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,792</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6,372)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">139,051</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Cash flows</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Net cash provided by (used in):</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Operating activities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">37,285</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">30,425</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,501</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">69,211</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Investing activities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(15,855)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7,051</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(11,708)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(15,278)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(35,790)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt' style="margin-top:0;margin-bottom:0">Financing activities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(30,438)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(41,264)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,524</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">15,278</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(45,900)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Other segment
 information</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,490</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">9,052</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,132</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">20,674</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Depreciation and amortization (Note 8)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,752</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">20,406</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">711</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">31,869</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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 </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,386</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,953</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">20</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7,359</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:22.5pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Provisions</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">  38</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt' style="margin-top:0;margin-bottom:0">Asset impairment (Notes 3, 5, 8, 9 and 11)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,220</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">492</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,766</p>
 </td>
 </tr>
</table></center></div>

<p 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">&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.   Income and Expenses</b></p>

<p style='margin-left:.25in;text-align:justify;page-break-after:
avoid' 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>Non-service Revenues</i></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:96.0%;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   valign=bottom 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>2007</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">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.1pt'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Sale of computers, cellular
 handsets and cellular SIM-packs</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>3,081</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">2,089</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Point-product sales</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>145</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">431</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(Note 4)</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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"><b>3,226</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;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">2,520</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>Compensation and Employee
Benefits</i></p>

<p style='margin-left:.25in;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:96.0%;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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2007</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' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Salaries and other employee benefits</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>16,645</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">13,761</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Pension
 (Notes 3 and 23)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,773</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,003</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Incentive plans (Notes 3 and 23)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,448</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3,150</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Manpower
 rightsizing program, or MRP</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>604</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">445</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>20,470</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">18,359</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">Over the past years, PLDT has been
implementing its MRP in line with its continuing effort to reduce the cost base
of its fixed line business.  The total MRP cost charged to operations for the
years ended December 31, 2007 and 2006 amounted to Php604 million and Php445
million, respectively.  The decision to implement the MRP was anchored on the
challenges being faced by the fixed line business as significant changes in
technology, increasing competition, and shifting market preferences to cellular
use have reshaped the future of the fixed line business.  The MRP is being implemented
in compliance with the Labor Code of the Philippines and all other relevant
labor laws and regulations in the Philippines.</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;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>Professional and Other Contracted Services</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:96.0%;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   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Technical and consultancy
 fees (Note 22)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>2,756</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,858</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Contracted services</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>1,641</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">948</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=left style='margin:0in;margin-bottom:.0001pt;
 text-align:left;page-break-after:avoid;punctuation-wrap:hanging;text-autospace:
 ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Legal
 and audit fees</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>203</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">219</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=left style='margin:0in;margin-bottom:.0001pt;
 text-align:left;page-break-after:avoid;punctuation-wrap:hanging;text-autospace:
 ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Other
 services</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>119</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">73</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;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"><b>4,719</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;
 background:#E0E0E0;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">3,098</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>Cost of Sales</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:96.0%;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   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost of computers, cellular
 handsets and cellular SIM-packs sold</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>4,430</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">4,847</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost of point-product sales</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>254</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">476</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cost of satellite air time and terminal units (Notes 22 and 24)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>160</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">199</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;
 background:#F3F3F3;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;
 background:#F3F3F3;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"><b>4,844</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;
 background:#F3F3F3;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">5,522</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>Financing Costs &#150; net</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:96.0%;margin-left:18.4pt;border-collapse:collapse;width:96.0% !msorm;
 border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style='margin-top: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;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 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">Interest on loans and related items
 (Notes 18 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>6,256</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">7,908</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accretion on financial liabilities &#150; net
 (Notes 2, 18 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>1,161</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">3,314</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=left style='margin:0in;margin-bottom:.0001pt;
 text-align:left;page-break-after:avoid;punctuation-wrap:hanging;text-autospace:
 ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Financing charges (Note 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>196</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">51</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Dividends on preferred stock subject to
 mandatory redemption <br>
 (Notes 7 and 18)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>17</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">130</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Capitalized interest (Notes 2 and 8)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(542)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(549)</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;
 background:#F3F3F3;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;
 background:#F3F3F3;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"><b>7,088</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,854</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">Interest expense for short-term
borrowings for the years ended December 31, 2007 and 2006 amounted to Php32
million and Php10 million, 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;text-align:justify' 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>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:96.0%;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   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2007</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' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.1pt'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Goodwill
 and intangible assets (Note 11)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,244</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Trade and other receivables (Notes 3 and 14)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>417</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">736</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Inventories and supplies (Note 15)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>243</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">211</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Reversal of
 impairment in investment in debt securities (Notes 9 and 13)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(</b><b>616)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Property, plant and equipment (Note 8)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,402</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Notes
 receivable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">346</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt' style="margin-top:0;margin-bottom:0">Other
 assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>29</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">21</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,317</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,766</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;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_LINK40"></a><a name="OLE_LINK39">&nbsp;</a></p>

</div>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6.   Income Tax</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='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The net components of deferred income tax assets (liabilities)
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:96.0%;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;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;height:13.9pt'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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;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;height:9.35pt'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>13,757</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">20,538</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net
 liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(2,066)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(402)</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 components of the consolidated
net deferred income tax assets and liabilities are 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:96.0%;margin-left:18.4pt;border-collapse:collapse;width:96.0% !msorm;
 border-collapse:collapse !msorm'>

 <tr>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-top:3.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.0pt' style='page-break-inside:
 avoid !msorm;height:8.0pt !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:8.0pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:8.0pt'>
 <p align=center style='margin-left:63.0pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million
 pesos)</p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Net assets:</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Net
 operating loss carryover, or NOLCO</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>6,055</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">4,983</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Accumulated
 allowance for doubtful accounts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,428</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">4,746</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Derivative
 financial instruments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,308</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,878</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Unearned
 revenues</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,789</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,955</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Pension
 and other employee benefits</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,096</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,568</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Unamortized
 past service pension costs</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>985</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">871</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Asset
 impairment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>824</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,432</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">MCIT</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>645</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">982</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Unrealized
 foreign exchange losses</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>544</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,632</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Provisions
 for impaired assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>494</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">732</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Accumulated
 write-down of inventories to net realizable values</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>224</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">321</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Leases</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>160</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">304</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Executive
 stock option plan</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>32</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">106</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Intangible
 assets and fair value adjustments on assets acquired</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(391)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Excess
 of fair value over cost of investment properties</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-left:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(80)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(77)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Preferred
 stock subject to mandatory redemption</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-left:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(100)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(109)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Capitalized
 taxes and duties &#150; net of amortization</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-left:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(376)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(446)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Capitalized
 foreign exchange differential</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-left:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(783)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(988)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Undepreciated
 capitalized interest charges</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-left:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(3,572)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(4,607)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Gain
 on debt exchange and debt restructuring transactions</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,650)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Asset
 retirement obligation &#150; net of undepreciated capitalized asset</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">191</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Others
 </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>82</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">105</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;
 background:#F3F3F3;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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>13,757</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">20,538</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:.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;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:right;
 text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:right;
 text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Net liabilities:</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Unearned
 revenues</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>914</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Provisions
 for impaired assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>348</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Asset
 retirement obligation &#150; net of undepreciated capitalized asset</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>332</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Accumulated
 provision for doubtful accounts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>304</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Asset
 impairment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>277</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Pension
 and other employee benefits</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>217</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Leases</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>42</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Unamortized
 past service pension costs</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>7</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Excess
 of fair value over cost of investment properties</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-left:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(60)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(38)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Derivative
 financial instruments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-left:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(164)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest
 charges capitalized</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-left:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(718)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Intangible
 assets and fair value adjustments on assets acquired</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-left:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(736)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(357)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Gain
 on debt exchange and debt restructuring transactions</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-left:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,228)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Unrealized
 foreign exchange gains</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-left:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,</b><b>613)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>12</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#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;
 background:#E0E0E0;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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-left:9.0pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>(2,066)</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(402)</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Provision for corporate income tax 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:96.0%;margin-left:18.4pt;border-collapse:collapse;width:96.0% !msorm;
 border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style='margin-top: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;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid;height:6.2pt' style='page-break-inside:
 avoid !msorm;height:6.2pt !msorm'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.0pt !msorm;
 padding:0in 0in 0in 0in !msorm;height:6.2pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:6.2pt'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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"><b>10,776</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,035</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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;background:#F3F3F3;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"><b>8,031</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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">(4,367)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;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"><b>18,807</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,668</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The reconciliation between the provision for income
tax at the applicable statutory tax rates and the actual provision for
corporate income tax is 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:96.0%;margin-left:18.4pt;border-collapse:collapse;width:96.0% !msorm;
 border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-top:3.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.0pt' style='page-break-inside:
 avoid !msorm;height:3.0pt !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:3.0pt'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Provision for corporate income tax at the applicable statutory tax
 rates</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>20,328</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,387</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;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:#F3F3F3;
 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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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"><b>333</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">751</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Equity share in net loss of investees</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>4</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">18</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(Income) loss subject to lower tax rate</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>(106)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">326</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;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:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(420)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,375)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Income
 subject to final tax</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(509)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(550)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net movement in unrecognized deferred income tax assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(823)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(5,889)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Actual
 provision for corporate income tax (Note 4)</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>18,807</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,668</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Mabuhay Satellite and SubicTel are registered as Subic
Bay Freeport Enterprises while ClarkTel is registered as a Clark Special Economic
Zone Enterprise under Republic Act No. 7227, or R.A. 7227, otherwise known as
the Bases Conversion and Development Act of 1992.  As registrants, Mabuhay
Satellite, SubicTel and ClarkTel are entitled to all the rights, privileges and
benefits established thereunder including tax and duty-free importation of
capital equipment and a special income tax rate of 5% of gross income, as
defined in R.A. 7227.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">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 enjoyed, among other incentives, a six-year income tax holiday,
or ITH, starting January 2001 until January 2007.</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">On January
3, 2007, the BOI approved ePLDT&#146;s application for pioneer status for its new
data center facility as a new IT service firm in the field of services related
to Internet Data Center.  ePLDT was granted a six-year ITH for its new data
center facility from the earlier of January 2007 and the actual start of
operations.  ePLDT started commercial operations of its new data center
facility in February 2007.</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 August
13, 2007, ePLDT received approval from the Philippine Economic Zone Authority,
or PEZA, to declare the Vitro Data Center Building as a PEZA-registered IT
Building EcoZone facility enabling prospective clients to apply for fiscal
incentives should they qualify as a PEZA-registered entity.  However, ePLDT as
a developer/operator of Vitro Data Center Building is not entitled to PEZA
incentives under R.A. No. 7916, or R.A. 7916, otherwise known as &#147;The Special
Economic Zone Act of 1995&#148;, as amended by Republic Act No. 8748, or R.A. 8748.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">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 is entitled to certain tax incentives,
including an ITH for six years starting in June 2002.  Parlance is required to
comply with specific terms and conditions stated in its BOI registration.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">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 non-tax
incentives which include, among other things, tax and duty-free importations,
exemption from local tax and an 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, of 5% gross income less allowable deductions as defined under
R.A. 7916.  The 5% final tax must be paid and remitted in accordance with the
amendments contained in R.A. 8748, as follows: (a) 3% to the National
Government; and (b) 2% which will 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-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">On
December 5, 2005, Vocativ received approval from PEZA for the adjustment of the
start of its commercial operations, effectively extending the ITH to end of
March 2006.  On June 30, 2006, PEZA approved Vocativ&#146;s ITH extension for
another year until April 2007.  On September 3, 2007, PEZA again approved
Vocativ&#146;s ITH extension for another year until March 2008.</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">Ventus
and two of its call center projects are registered with the BOI as a new IT
export service firm in the field of customer interaction center on a pioneer
status.  Under their registrations, Ventus, Ventus Iloilo and Pasig call center
projects are entitled to certain tax incentives such as an ITH for six years
starting March 2005 for Ventus and Ventus Iloilo call center and August 2006
for Ventus Pasig call center.  In relation to this, they are required to comply
with specific terms and conditions stated in their BOI registration.</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">iPlus Intelligent Network, Inc.,
or iPlus, is a wholly-owned subsidiary of ePLDT and 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.</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">mySecureSign, Inc., or mSSI, is a
wholly-owned subsidiary of ePLDT and 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 enjoyed, among other incentives,
a six-year ITH from August 1, 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">Digital Paradise is registered with the BOI as a new IT service firm in the field of community
access on a non-pioneer status.  Under the provisions of the registration,
Digital Paradise&#146;s sales generated from its own community access activity and
franchise fees are entitled to an ITH for a period of four years beginning
December 2002.  In December 2006, the BOI approved Digital Paradise&#146;s
application for a status upgrade from non-pioneer to pioneer, accordingly
extending the ITH period for another two years starting January 2007.</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">Level Up! was
originally registered with the BOI as a new IT service firm in the field of
application service provider on a non-pioneer status.  Under such registration,
Level Up! is entitled to certain tax incentives, which includes a four-year ITH
from January 2003 and a tax credit for taxes on duties on materials used in
export products for ten years starting January 2003.  In April 2004, the BOI
approved Level Up!&#146;s request for upgrading its status from non-pioneer to
pioneer in connection with its IT service activity in the field of application
service provider for entertainment and educational project.  Accordingly, the
ITH period was extended from four years to six years to expire on January 2009.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">In September 2006, PEZA approved SPi&#146;s application for
registration as an ecozone information technology enterprise to provide IT
enabled services with emphasis on the creation of electronic discovery,
presentation of content in electronic information formats, data analysis,
capture, abstracting and data processing, design, development and
implementation of healthcare documentation solutions.  As a registered
enterprise, SPi is entitled to certain tax and non-tax incentives which
include, among other things, tax and duty-free importations, exemption from
local tax and an ITH for four years starting from June 2002.  After the ITH period, SPi is liable for a final
tax, in lieu of all taxes.  The final tax is computed at 5% of gross income
less allowable deductions as defined under R.A. 7916 and will be paid and
remitted in accordance with the amendments contained in R.A. 8748, as follows:
(a) 3% to the National Government; and (b) 2% which will 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-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">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 other things, an ITH for four years starting
February 2004.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">On
November 29, 2007, the BOI approved Wolfpac&#146;s application for a one year
extension of ITH incentive on the basis that the capital equipment to labor
ratio did not exceed US$10 million as provided under Article 39 of Executive
Order, or E.O. 226.  The approved bonus year is for the period from February
13, 2008 to February 12, 2009.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">Smart
Broadband, Inc., or SBI, has three registered activities with the BOI on a
pioneer status, namely: (i) a new operator of telecommunications systems
(inter-exchange carrier for data services); (ii) new information technology
service firm in the field of providing internet services; and (iii) a new
operator of telecommunications facilities (nationwide broadband wireless
access).  Under the terms of these registrations, SBI is entitled to certain
tax and non-tax incentives which include, among other things, an ITH for six
years until February 2007, August 2007 and July 2011, respectively.  After the
ITH period, SBI is liable for a 30% regular corporate income tax or 2% MCIT,
whichever is higher.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">Income
derived from non-registered activities with the BOI is subject to the regular income
tax rate enacted as at the balance sheet date.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">Consolidated
tax incentives that we availed for the years ended December 31, 2007 and 2006
amounted to Php766 million and Php142 million, respectively.</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">On May 24, 2005, the President of the Philippines signed into law Republic Act No. 9337, or R.A. 9337, amending certain sections
of the National Internal Revenue Code, which took effect on November 1, 2005.
R.A. 9337, among others, introduced the following changes:</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
regular corporate income tax rate for domestic corporations and
resident/non-resident foreign corporations increased from 32% to 35% effective
November 1, 2005 and will be reduced to 30% effective January 1, 2009;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
VAT rate increased from 10% to 12% effective February 1, 2006; and</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
 The input VAT on capital goods should be spread evenly over the
estimated useful life or sixty months, whichever is shorter, if the acquisition
cost, excluding the VAT component thereof, exceeds Php1 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">Our
deferred income tax assets have been recorded to the extent that such deferred
income tax assets are expected to be utilized against sufficient future taxable
profit.  We had unrecognized deferred income tax assets of <br>
Php1,122 million and Php299 million largely pertaining to MCIT and asset
impairments as at December 31, 2007 and 2006, respectively.</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">The breakdown of our consolidated unutilized NOLCO as
at December 31, 2007 is 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: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;page-break-after:
 avoid' 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;
 page-break-after:avoid' 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=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2005</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;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">2008</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,383</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,424</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">2010</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">931</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;
 background:#F3F3F3;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;
 background:#F3F3F3;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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;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">17,738</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:9.45pt'>
 <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;background:
 #E0E0E0;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:none;background:
 #E0E0E0;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">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Tax benefit from NOLCO</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <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=' background:#F3F3F3;
 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">6,060</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 6.75pt'>
 <p style='margin-left:13.1pt;text-indent:-13.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Unrecognized deferred income tax assets
 from NOLCO as at December 31, 2007</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 6.75pt'>
 <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;background:#E0E0E0;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">(5)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:6.75pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:6.75pt'>
 <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;background:#F3F3F3;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">6,055</p>
 </td>
 </tr>
</table></center></div>

<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">The breakdown of our consolidated excess MCIT as at
December 31, 2007 is 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:96.94%;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' 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;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">2005</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">484</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">499</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">2010</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">645</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;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;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,628</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Unrecognized
 deferred income tax assets from MCIT as at December 31, 2007</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(983)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='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;background:#F3F3F3;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;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 645</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%;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-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 presents
information necessary to calculate the earnings per common share:</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:96.94%;margin-left:18.4pt;border-collapse:collapse;width:96.94% !msorm;
 border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid;height:7.1pt' style='page-break-inside:
 avoid !msorm;height:7.1pt !msorm'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm;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=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:7.1pt'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:7.1pt'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&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;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-left:.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Basic</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Diluted</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Basic</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Diluted</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-top:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:0in;;
 margin-bottom:0in;margin-left:18.05pt;margin-bottom:.0001pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt' style="margin-top:0;margin-bottom:0">Consolidated net income attributable to equity
 holders <br>
 of PLDT</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>39,289</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>39,289</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">32,385</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">32,385</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Dividends on convertible
 preferred shares</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(457)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(457)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(455)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(455)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Dividends on dilutive preferred stock subject to
 mandatory redemption charged to interest expense for the year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>17</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Accretion of preferred stock subject to mandatory
 redemption</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>131</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Foreign exchange gains on preferred stock subject to mandatory redemption</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(182)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Consolidated net income applicable to common shares</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>38,832</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>38,798</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>31,930</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>31,930</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:10.2pt' style='page-break-inside:
 avoid !msorm;height:10.2pt !msorm'>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:10.2pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm;
 height:10.2pt'>
 <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' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-top:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;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;border:none !msorm;border-top:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-top:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=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;border:none !msorm;border-top:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;border-top:
 solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:.05in;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=' background:#E0E0E0;
 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 at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>188,435</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>188,435</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">180,789</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">180,789</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Effect of issuance of common shares during the year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>221</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>221</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3,667</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3,667</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Average incremental number of shares under ESOP <br>
 during the year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>38</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">98</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Common shares equivalent of convertible preferred
 shares deemed dilutive:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:4.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.0pt'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Preferred Stock Series VI (Note 18)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>680</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Weighted average number of common shares for the year</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>188,656</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>189,374</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">184,456</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">184,554</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.1pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:11.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php</b><b>205.84</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:11.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php</b><b>204.88</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:11.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php173.10</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:11.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">Php173.01</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">Basic EPS is calculated by
dividing the consolidated net income for the year attributable to common
shareholders (consolidated 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 year, after giving retroactive effect to any stock dividend declarations.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Diluted EPS is calculated in the same manner assuming
that, at the beginning of the year or at the time of issuance during the year,
all outstanding options are exercised and convertible preferred shares are
converted to common shares, and appropriate adjustments to consolidated net
income are effected for the related expenses and income on preferred shares.
Outstanding stock options will have a dilutive effect only when the average
market price of the underlying common share during the year exceeds the
exercise price of the option.</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">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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">When required
dividends 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, decreases the basic EPS, then such
convertible preferred shares are deemed dilutive.  As such, the diluted EPS is calculated
by dividing consolidated net income attributable to common shareholders
(consolidated net income, adding back any dividends and/or other charges
recognized in the year 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 number of 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-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Series VI
Convertible Preferred Stocks in 2007 and Series A to EE, VI and VII Convertible
Preferred Stocks in 2005 were deemed dilutive based on a calculation of the
required dividends on these preferred shares divided by the number of
equivalent common shares assuming such preferred shares are converted into
common shares, including the effect of shares under ESOP, and compared against
the basic EPS.  Since the amount of dividends on the Series A to EE and Series
V Convertible Preferred Stocks in 2007 and Series A to EE, V and VI Convertible
Preferred Stocks in 2006 over its equivalent number of common shares increased
the basic EPS, these Convertible Preferred Stocks were anti-dilutive.</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">On January
29, 2008, our board of directors approved a share buyback program of up to two
million shares of PLDT&#146;s common stock, representing approximately 1.1% of PLDT&#146;s
total outstanding shares of common stock.  As at March 25, 2008, we acquired a
total of 98,000 shares of common stock based on the buyback program.  The
subsequent acquisition of shares of PLDT&#146;s common stock pursuant to the buyback
program has no effect on our basic and diluted earnings per common share for
the years ended December 31, 2007 and 2006. See <i>Note 17 &#150; Equity</i> for
further discussion.</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>Dividends Declared For The Year
Ended December 31, 2007</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:96.94%;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<br>
 </b>(in million pesos)</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">&nbsp;</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Preferred Stock Subject to Mandatory Redemption</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">March 6, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">March 20, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">April 15, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php4.675</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">June 12, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">June 28, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">July 15, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4.675</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">September 14, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">September 28, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">October 15, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4.675</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">December 1, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">December 21, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">January 15, 2008</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4.675</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">March 6, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">March 20, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">April 15, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">US$0.09925</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">June 12, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">June 28, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">July 15, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">0.09925</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">September 14, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">September 28, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">October 15, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">0.09925</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;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;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">December 1, 2007</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">December 21, 2007</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">January 15, 2008</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">0.09925</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;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:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">  13</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>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 <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=' background:#E0E0E0;
 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 Stock</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">January 30, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">February 28, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">March 30, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">January 31, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">February 15, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">February 28, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 EE</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">March 27, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">April 26, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">May 31, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 A, I, R, W, AA and BB</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">July 10, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">August 1, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">August 31, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 B, F, Q, V and Z</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">August 7, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">September 3, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">September 28, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">91</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series E, K, O and U</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">September 14, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">October 4, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">October 31, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series C, D, J, T and X</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">September 14, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">October 14, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">November 27, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">57</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 G, N, P and S</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">November 6, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">December 6, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">December 28, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">27</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Series
 H, L, M and Y</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">December 1, 2007</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">December 28 2007</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">January 31, 2008</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">41</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0"> 408</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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><a
 name="OLE_LINK38"><b>Cumulative Non-Convertible
 Redeemable Preferred Stock</b></a></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">January 30, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">February 23, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">March 15, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">May 8, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">May 25, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">June 15, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">July 10, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">August 9, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">September 15, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">November 6, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">November 23, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">December 15, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">  49</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Regular
 Dividend</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">March 6, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">March 20, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">April 20, 2007</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php50.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">9,429</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">August 7, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">August 24, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">September 24, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">60.00</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">11,322</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">Special
 Dividend</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">August 7, 2007</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">August 24, 2007</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">September 24, 2007</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">40.00</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">7,548</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">28,299</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;
 background:#F3F3F3;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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p 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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right' style="margin-top:0;margin-bottom:0">28,756</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 amount paid up</i></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"><b>Dividends
Declared After December 31, 2007</b></p>

<p style='margin-left:.25in;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:96.94%;margin-left:18.4pt;border-collapse:collapse;width:96.94% !msorm;
 border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-top:3.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='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>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;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:2.9pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Class</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Approved</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' 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;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Payable</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Per Share</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:.05pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total<br>
 </b>(in million pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.0pt' style='page-break-inside:
 avoid !msorm;height:3.0pt !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=right style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.5pt;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;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=right style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.5pt;text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=right style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.5pt;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;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=right style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:40.5pt;text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:3.0pt'>
 <p align=center style='margin-bottom:1.0pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Cumulative Non-convertible Redeemable
 Preferred Stock</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Series IV*</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">January 29, 2008</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">February 22, 2008</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">March 15, 2008</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:26.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>10% Cumulative Convertible <br>
 Preferred Stock </b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Series CC</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">January 29, 2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">February 28, 2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">March 31, 2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php1.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Series DD</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">January 29, 2008</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">February 15, 2008</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">February 29, 2008</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1.00</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  19</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Convertible Preferred Stock </b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Series V</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">March 4, 2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">March 20, 2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">April 15, 2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php4.675</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;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;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt;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;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">March 4, 2008</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">March 20, 2008</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">April 15, 2008</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$0.09925</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;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=' border:none;padding:0in 0in 0in 0in'>
 <p style='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'>
 <p align=right style='margin-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-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-right:26.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Common Stock</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Regular Dividend</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">March 4, 2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">March 19, 2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">April 21, 2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php68.00</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,834</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Special Dividend</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">March 4, 2008</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">March 19, 2008</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">April 21, 2008</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56.00</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,570</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">23,404</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-indent:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">23,438</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"><i>*     </i><i>Dividends
are declared based on total amount paid up</i></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"><a
name="OLE_LINK79"></a><a name="OLE_LINK78"></a><a name=cashandcash></a><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%;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"><i>&nbsp;</i></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"><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: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   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 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   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 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   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 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 network 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   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 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 and termination equipment</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 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   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 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' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 5.4pt 0in 5.4pt;
 border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=16 valign=bottom style=' border:none;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p align=center style='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=17 valign=bottom style=' background:
 #E0E0E0;padding:0in 5.4pt 0in 5.4pt;height:8.05pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>At December 31, 2005</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">107,781</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">82,353</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">61,043</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">19,727</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">27,923</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,560</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,918</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,438</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,794</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">331,537</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 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 and
 amortization</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(41,262)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(46,259)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(29,410)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(5,196)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(21,056)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,083)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(5,048)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(249)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(154,563)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">66,519</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,094</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31,633</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,531</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,867</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,477</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,870</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,189</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,794</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">176,974</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   colspan=17 valign=bottom style=' border:none;
 padding:0in 5.4pt 0in 5.4pt;border:none !msorm;padding:0in 5.4pt 0in 5.4pt !msorm'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=17 valign=bottom style=' background:
 #E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Year Ended December 31, 2006</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Net book value at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">66,519</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,094</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31,633</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,531</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,867</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,477</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,870</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,189</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,794</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">176,974</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;text-indent:-8.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Additions/Transfers &#150; net</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,900</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,277</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,562</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">601</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,193</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,351</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">230</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,084</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20,198</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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/Retirements</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(38)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(158)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(103)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(71)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">99</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(4)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(223)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(500)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;text-indent:-8.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Translation differences charged directly
 to cumulative translation adjustments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(35)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(7)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(73)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(311)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(426)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Acquisition through business combination</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(13)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">273</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">903</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,215</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;text-indent:-8.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Reclassifications</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">91</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(99)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Impairment losses recognized during the
 year (Note 5)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(5)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,391)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,402)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 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 (Note 4)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(5,356)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(12,941)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,459)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,189)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(4,406)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(619)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(880)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(19)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><br>
 (31,869)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;text-indent:-8.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net book value at end of year (Note 3)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">66,027</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">26,312</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31,534</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,141</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,578</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,156</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,340</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,416</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">12,686</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">164,190</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=17 valign=bottom style=' background:
 #E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Year Ended December 31, 2007</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:8.1pt;text-indent:-8.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Net book value at beginning of year</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">66,027</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">26,312</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">31,534</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">14,141</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">5,578</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">2,156</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">3,340</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">2,416</p>
 </td>
 <td   colspan=3 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">12,686</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">164,190</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;text-indent:-8.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Additions/Transfers &#150; net</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,769</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,254</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,018</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">408</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,811</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,633</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,914</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">24,808</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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/Retirements</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(183)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(55)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(75)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(11)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(45)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(41)</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(31)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(441)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;text-indent:-8.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Translation differences charged directly
 to cumulative translation adjustments</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(77)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(103)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(495)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(84)</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(754)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Acquisition through business combination</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">99</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">146</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(32)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(7)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 224</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;text-indent:-8.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Reclassifications</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">894</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,923</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">888</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,709)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=3 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(5,030)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 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 (Note 4)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8,449)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,063)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(7,530)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,138)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3,426)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(556)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(1,448)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3)</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><br>
 (28,613)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 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">Net book value at end of year (Note 3) </p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">63,058</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">22,555</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31,870</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,372</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,849</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,105</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,784</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,289</p>
 </td>
 <td   colspan=3 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18,532</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">159,414</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=17 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"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=17 valign=bottom style=' background:
 #E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>At December 31, 2007</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cost</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">117,081</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">86,841</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">70,045</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20,695</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">32,572</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,454</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,191</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,561</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18,532</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">364,972</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:8.1pt;text-indent:-8.1pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Accumulated depreciation and
 amortization</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(54,023)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(64,286)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(38,175)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(7,323)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(27,723)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(7,349)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,407)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(272)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(205,558)</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;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net book value (Note 3)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">63,058</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">22,555</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">31,870</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,372</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,849</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,105</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,784</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,289</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18,532</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">159,414</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' style="margin-top:0;margin-bottom:0">Substantially, all our
telecommunications equipment is purchased from outside the Philippines.  Our significant sources of financing for such purchases are foreign loans requiring
repayment in currencies other than Philippine pesos, principally in U.S.
dollars.  See <i>Note 18 &#150; Interest-bearing Financial Liabilities</i>.
Interest, using an average capitalization rate of 10%, and net foreign exchange
losses capitalized to property, plant and equipment qualified as borrowing
costs for the years ended December 31, 2007 and 2006 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:96.0%;margin-left:18.4pt;border-collapse:collapse'>
 <tr style='page-break-inside:avoid;height:14.7pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:14.7pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:14.7pt'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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:14.7pt'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:3.95pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;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=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:3.95pt'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Interest (Notes 2 and 5)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>542</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">549</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.45pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign exchange gains &#150; net</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>63</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">521</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">As
at December 31, 2007 and 2006, the undepreciated capitalized net foreign
exchange losses which qualified as borrowing costs amounted to Php2,533 million
and Php3,117 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"><a
name="OLE_LINK72"></a><a name="OLE_LINK67">The consolidated useful lives of the
assets are estimated as follows:</a></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:81.22%;margin-left:54.9pt;border-collapse:collapse'>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 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=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">25
 years</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cable
 and wire facilities </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">10
 &#150; 25 years</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 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=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">10
 &#150; 20 years</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">Communications satellite</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">15 years</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 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=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3
 &#150; 15 years</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">Land
 improvements</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">10
 years</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">Vehicles,
 furniture and other network equipment</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3
 &#150; 10 years</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style=';page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cellular
 facilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">3
 &#150; 10 years</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">We recognized additional depreciation charge of Php796
million and Php8,624 million in 2007 and 2006, respectively, due to a change in
the estimated useful lives of certain of our network assets owing to continuing
network upgrade and expansion.  The acceleration of depreciation is expected to
result in a reduction of future monthly depreciation charge amounting to Php10
million moving forward.</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>SBI&#146;s Acquisition
of Cluster 3 Assets from Cruz Telephone Company, Inc., or Cruztelco</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">On February
1, 2008, SBI completed the acquisition of the Cluster 3 assets from Cruztelco
at a price of Php371 million.  Cruztelco is a Local Exchange Carrier operator
offering fixed line services in three geographical clusters, namely:  (i)
Cluster 1 covering certain areas in Visayas and Luzon; (ii) Cluster 2 North
Western Mindanao, and (iii) Cluster 3 North Eastern Mindanao.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">The
fair value of the Cluster 3 assets, determined provisionally, was assessed to
be equal to its book value allocated as follows: (a) equipment Php318 million;
(b) land Php31 million; and  (c) buildings and improvements Php22 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">SBI intends
to engage an independent appraiser to establish the fair values of the acquired
assets.</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>Asset
Impairment Review</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
December 31, 2006, management determined that due to Mabuhay Satellite&#146;s
difficulty in generating cash flows with the satellite nearing its end-of-life
and other events affecting its business, Mabuhay Satellite&#146;s Agila II
transponder was considered impaired.  This impairment review was based on the net
present value of future cash flows from the continued use of this asset group
using the discount factor of 10% as applied on cash flow projection from 2008
until 2010.  An impairment loss of Php1,391 million was charged to the carrying
value of this satellite as at December 31, 2006 and included in the accumulated
depreciation and amortization account in the consolidated balance sheets as at December
31, 2006.  In 2007, we performed an impairment update review on Mabuhay
Satellite&#146;s Agila II and no additional impairment was recognized.</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">Property,
plant and equipment include the following amounts for capitalized leases as at
December 31, 2007 and 2006:</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='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>2007</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">2006</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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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>354</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>1,190</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>1,544</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">354</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,183</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,537</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Less accumulated depreciation</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>333</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.25in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,109</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,442</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">310</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">950</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,260</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>  21</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.25in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>  81</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 102</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.4pt;text-align:right;
 text-indent:4.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">  44</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.4pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 233</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 277</p>
 </td>
 </tr>
</table></center></div>

<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">The following table summarizes all changes to the
liabilities on asset retirement obligations as at December 31, 2007 and 2006:</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:96.94%;margin-left:18.4pt;border-collapse:collapse'>
 <tr style='height:11.6pt'>
 <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-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-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-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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;height:11.6pt'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:63.0pt;text-align:center' style="margin-top:0;margin-bottom:0">(in
 million pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asset retirement obligations
 at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>831</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">752</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accretion expenses</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>81</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">87</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Additional liability
 recognized during the year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>48</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">45</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Settlement of obligations</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(8)</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(53)</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Asset retirement obligations
 at end of year (Notes 3 and 19)</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 952</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;
 background:#E0E0E0;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"> 831</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>9.   Investments in Associates and Joint Ventures</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;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:96.94%;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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:11.6pt'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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;height:11.6pt'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:63.0pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">ACeS
 International Limited</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>1,896</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">1,896</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Mabuhay
 Space Holdings Limited</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>791</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">937</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Blue Ocean Wireless</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>724</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Philweb
 Corporation</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>712</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">712</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">BayanTrade
 Dotcom, Inc.</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>97</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">97</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">ePDS,
 Inc.</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>6</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">6</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;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"><b>4,226</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 background:#E0E0E0;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">3,648</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Less accumulated impairment losses and
 equity share in net losses of associates</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,875</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,012</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,351</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;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"> 636 </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">Movements
in the accumulated equity share in net losses of associates 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:96.94%;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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:11.6pt'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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;height:11.6pt'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:63.0pt;text-align:center' style="margin-top:0;margin-bottom:0">(in
 million pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>82</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">134</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Equity in net losses (gain) of
 associates for the year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>11</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(52)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance at end of year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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"><b>  93</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;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">  82</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">Movements
in the accumulated impairment losses are 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:96.94%;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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:11.6pt'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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;height:11.6pt'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:63.0pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million
 pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance
 at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>2,930</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">2,725</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Translation
 adjustments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(</b><b>148)</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(77)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Impairment
 losses for the year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">282</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance
 at end of year</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;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"><b>2,782</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;
 background:#F3F3F3;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">2,930</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 Philippines in ACeS International Limited, or AIL </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">As at
December 31, 2007, ACeS Philippines had a 36.99% 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">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 has been significantly
lower than budgeted.  These factors raised substantial doubt about AIL&#146;s ability
to continue as a going concern.  On this basis, we recognized a full impairment
provision in respect of our investment in AIL in 2003.</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">For further details as to the
contractual relationships in respect of AIL.  See <i>Note 22 &#150; Related Party
Transactions </i>and <i>Note 24 &#150; Contractual Obligations and Commercial
Commitments</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"><b><i>Investment of Mabuhay
Satellite in Mabuhay 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' 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 to the Agila II
Satellite.  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;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 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 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 other things, 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-top:0;margin-bottom:0">In accordance with
the settlement agreement, Mabuhay Satellite and SS/L are required to proceed to
dissolve the joint venture under a separate agreement, for which each of the
parties will receive title over a number of transponders owned by the joint
venture in proportion to their respective interests.  On the basis of the joint
venture dissolution, we recognized full impairment provision in respect of our
investment in MSHL 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
of Smart in Blue Ocean Wireless, or BOW</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">On August
3, 2007, Smart (through its subsidiary, SCH) acquired a 30% equity interest in
BOW, a Dublin-based company delivering GSM communication capability for the
merchant maritime sector.  Total acquisition cost amounted to US$16 million, or
Php724 million, of which US$13 million, or Php601 million, was paid in cash and
US$3 million, or Php123 million, worth of equipment and services was delivered
by Smart in accordance with the subscription agreement.  BOW provides GSM network
on the seas through Altobridge, a patented GSM technology that will complement
Smart&#146;s prepaid wireless satellite phone service, <i>SmartLink</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>Investment of ePLDT in
Philweb Corporation, or Philweb</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 May 2006, ePLDT subscribed to
newly issued common shares of Philweb, an internet-based online gaming company,
equivalent to 20% of the total outstanding capital stock of Philweb at a price
of Php0.020 per share or an aggregate amount of Php503 million.  Of the total
subscription price, Php427 million was paid by ePLDT on the closing date.  The
portion of the unpaid subscription price amounting to Php25 million will be
paid by ePLDT at the same time as the Philweb majority stockholders pay the
remaining unpaid portion of the subscription pursuant to a general call on
subscription to be made by Philweb&#146;s board of directors.  The balance of Php50
million will be paid upon the lapse of certain post-closing price adjustment
periods.  The unpaid subscription of Php75 million was recorded as part of accrued
expenses and other current liabilities in the consolidated balance sheet.</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 October 2006, ePLDT acquired an
additional 8,037,692,308 shares of Philweb at a price of Php0.026 per share or
an aggregate amount of Php209 million.  This represents an additional 6.2% of
the outstanding shares of Philweb, raising ePLDT&#146;s total equity stake to 26.87%
and 25.5% as at December 31, 2007 and 2006, 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' style="margin-top:0;margin-bottom:0">Philweb is primarily engaged in
internet-based online gaming, through its appointment as Principal Technology Service
Provider under the Marketing Consultancy Agreement for Internet Sports Betting
and Internet Casino with the Philippine Amusement and Gaming Corporation, or
PAGCOR.  As at the end of December 2007, Philweb offers Internet Sports Betting
in over 200 PAGCOR Internet Sports Betting Stations and over 70 Internet Casino
Stations nationwide.  As at December 31, 2007 and 2006, the market value of
ePLDT&#146;s investments in Philweb amounted to Php1,492 million and Php1,028
million, 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"><b><i>Investment
of ePLDT in BayanTrade Dotcom, Inc., or BayanTrade</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">BayanTrade was incorporated and
registered with the Philippine SEC on August 8, 2000 to provide:  (a) a
business-to-business electronic purchasing market place to link buyers and
suppliers of goods and 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) 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 20.5%, which was subsequently diluted to 19.17%
in August 2004 due to an equity call to which ePLDT did not subscribe.  The
dilution did not affect the degree of our representation on the board of
directors of BayanTrade and significant influence was therefore retained.</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">In
September 2005, ePLDT received 4,794,615 bonus warrants from BayanTrade which
entitles ePLDT to purchase 2,794,615 common shares at a price of Php0.50 per
share at any time on or before August 31, 2010.</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>Investment of ePLDT in ePDS,
Inc., or ePDS</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">ePLDT entered into a joint venture
agreement with DataPost Pte Ltd., or DataPost, a subsidiary of Singapore Post,
or Spring, and G3 Worldwide ASPAC pursuant to which the parties formed ePDS, a
bills printing company that does laser printing and enveloping services for
statements, bills and invoices, and other value-added services for 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">&nbsp;</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Summarized
Financial Information of Equity Investees and Joint Ventures</i></b></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</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">The following
table presents the summarized financial information of our investments in
associates in conformity with IFRS for equity investees for which we have
significant influence as at and for the years ended December 31, 2007 and 2006.</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:96.94%;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 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-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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='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;height:3.0pt'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Consolidated Balance
 Sheets:</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Noncurrent assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>1,383</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">1,333</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Current assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>1,084</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,122</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Capital deficiency</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>(8,340)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">(9,618)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Noncurrent liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>10,162</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">10,029</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Current liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>645</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,044</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Consolidated Statements
 of Income</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Revenues</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>863</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,194</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Revenues less cost of
 revenues</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>746</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">654</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Expenses</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>578</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,066</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net income (loss)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>168</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(412)</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%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p 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:96.94%;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;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2007</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=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">2006</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=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:13.85pt'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Balance at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>587</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">701</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Net gains (losses) from fair
 value adjustments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>3</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Disposals</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(13)</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(112)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#F3F3F3;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 year (Notes 3 and 26)</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>577</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">587</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">Investment
properties are stated at fair values, which have been determined based on the
latest valuations performed by Asian Appraisal Company, Inc., an independent
firm of appraisers, which is an industry specialist in valuing these types of
investment properties.  The valuation undertaken was based on an open market
value, supported by a 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 dates of valuation.  None of our investment
properties are being leased to third parties that earn rental 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">&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">Movements in goodwill and
intangible assets are 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:96.86%;margin-left:18.4pt;border-collapse:collapse;width:96.86% !msorm;
 border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid;height:13.9pt' style='page-break-inside:
 avoid !msorm;height:13.9pt !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:13.9pt'>
 <p align=right style='margin-top:3.0pt;text-align:right' 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;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:13.9pt'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   colspan=3 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:13.9pt'>
 <p align=center style='margin-top:3.0pt;text-align:center' style="margin-top:0;margin-bottom:0">2006</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='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:9.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' 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-right:.05pt;text-align:center' 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=right style='margin-right:.05in;text-align:right' 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=right style='margin-right:.05in;text-align:right' 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-right:.05pt;text-align:center' 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=right style='margin-right:.05in;text-align:right' 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-left:0in;text-indent:0in;page-break-after:
 auto' 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' 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.0pt'>
 <p style='margin-left:0in;text-indent:0in;page-break-after:
 auto' style="margin-top:0;margin-bottom:0">Cost:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style='margin-left:9.0pt;text-indent:0in;page-break-after:
 auto' style="margin-top:0;margin-bottom:0">Balance at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>10,137</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,456</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>13,593</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,942</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,991</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3,933</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:9.0pt;text-indent:0in;page-break-after:
 auto' style="margin-top:0;margin-bottom:0">Additions during the year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,231</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>607</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,838</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">8,498</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,540</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">10,038</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:9.0pt;text-indent:0in;page-break-after:
 auto' style="margin-top:0;margin-bottom:0">Translation adjustments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,489)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(242)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(1,731)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(303)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(75)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(378)</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;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p style='margin-left:0in;text-indent:0in;page-break-after:
 auto' style="margin-top:0;margin-bottom:0">Balance at end of year</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>10,879</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,821</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>14,700</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">10,137</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3,456</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">13,593</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: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:.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;
 height:3.5pt'>
 <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;
 height:3.5pt'>
 <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;
 height:3.5pt'>
 <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;
 height:3.5pt'>
 <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;
 height:3.5pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:5.85pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p style='margin-left:0in;text-indent:0in;page-break-after:
 auto' style="margin-top:0;margin-bottom:0">Accumulated amortization and
 impairment:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.45pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style='margin-left:9.0pt;text-indent:0in;page-break-after:
 auto' style="margin-top:0;margin-bottom:0">Balance at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>438</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>941</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,379</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">438</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">446</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 884</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:9.0pt;text-indent:0in;page-break-after:
 auto' style="margin-top:0;margin-bottom:0">Amortization during the year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>390</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b> 390</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">450</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 450</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:9.0pt;text-indent:0in;page-break-after:
 auto' style="margin-top:0;margin-bottom:0">Impairment during the year (Note 5)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,191</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>53</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,244</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">  50</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:9.0pt;text-indent:0in;page-break-after:
 auto' style="margin-top:0;margin-bottom:0">Translation adjustments </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(34)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(34)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(5)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(5)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:7.6pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:7.6pt'>
 <p style='margin-left:0in;text-indent:0in;page-break-after:
 auto' style="margin-top:0;margin-bottom:0">Balance at end of year</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,629</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,350</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,979</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' 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;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 941</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,379</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:6.25pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p style='margin-left:0in;text-indent:0in;page-break-after:
 auto' style="margin-top:0;margin-bottom:0">Net balance (Notes 3 and 26)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>9,250</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,471</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>11,721</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">9,699</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,515</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">12,214</p>
 </td>
 </tr>
</table></center></div>

<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>2006
Acquisitions</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:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>ePLDT&#146;s
Acquisition of Level Up!</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 February
16, 2006, ePLDT entered into a sale and purchase agreement to acquire a 60%
equity interest of Level Up!, a leading publisher of online games in the Philippines, for a total consideration of US$7 million, or Php383 million.  The transaction
was completed on April 30, 2006.  In August 2006, the shareholders agreement
and share purchase agreement between ePLDT and Level Up! were amended to
reflect the removal of earn-out and price adjustment provisions thereby fixing
the acquisition for 60% equity interest of Level Up! at the aforementioned
original purchase price of US$7 million, or Php383 million.  As at April 30,
2006, the net cash outflow related to the acquisition was Php350 million,
representing cash payments of Php383 million, net of cash acquired from Level
Up! of Php35 million. Total cash payments include a purchase price consideration
of Php381 million and incidental cost of Php2 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">The
purchase consideration has been allocated to the assets and liabilities on the
basis of fair values at the date of acquisition.  The fair values of the
identifiable acquired assets and liabilities of Level Up! as at April 30, 2006
and the corresponding carrying amounts immediately before the acquisition 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:97.02%;margin-left:.25in;border-collapse:collapse'>

 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:.05pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Previous Carrying Value</p>
 </td>
 <td   style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Fair Value Recognized on Acquisition</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"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 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">(in million pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Assets:</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Property,
 plant and equipment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">129</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">129</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Goodwill</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">597</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Intangible
 assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">84</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">185</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Prepayments and advances
 and refundable deposits &#150;net of current portion</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Trade and other receivables</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Inventories and supplies</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Current portion of
 prepayments and advances and refundable deposits</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 284</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 982</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Liabilities:</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deferred income tax liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Finance lease</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accounts payable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">21</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">21</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accrued expenses and other
 current liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">104</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Due to related parties</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">110</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">110</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 284</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 344</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Minority
 interest</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">255</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net assets
 acquired</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:36.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:31.5pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">383</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">Intangible
assets, as determined by American Appraisal China, Limited, an independent
appraiser, pertaining to Level Up!&#146;s game license agreements for certain of its
services amounted to Php185 million with an estimated remaining useful life of
5.67 years.  Level Up! was accounted for in our consolidated financial
statements using the purchase method of accounting, which resulted in goodwill
amounting to Php597 million in 2006.  Goodwill pertains to the assembled
workforce and other unidentified intangible assets that did not qualify as
intangible assets under<i> IAS 38, &#147;Intangible Assets&#148;</i>.  As at December 31,
2006, ePLDT provided impairment in value of its intangible assets in Level Up!
amounting to Php50 million, representing a write-down of such intangible assets
to recoverable amounts using the value in use approach.  The impairment was a
result of projected decline on revenues related to certain license agreements.
Value in use was based on the discounted cash flow projections using the most
recent financial forecast approved by our management.</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 consolidated revenues would
have been increased by Php140 million while our net income would have been
decreased by Php6 million for the year ended December 31, 2006 if the acquisition
of Level Up! had actually taken place on January 1, 2006.  Total net loss of
Level Up! included in our 2006 consolidated statement of income from the time
of acquisition until December 31, 2006 amounted to Php34 million.</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>ePLDT&#146;s
Acquisition of SPi</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 July 11, 2006, ePLDT acquired a
100% equity interest in SPi and its direct and indirect Philippine and offshore
subsidiaries for a total cash consideration of US$136 million.  As part of the
transaction, ePLDT also assumed a US$7 million debt owed by SPi to the seller
at face value.  In addition, ePLDT advanced US$16 million to SPi in order for
SPi to fully pay its debt owed to DBS Bank Singapore.  As at December 31, 2006,
the net cash outflow related to the acquisition was Php7,028 million,
representing cash payments of Php7,114 million, net of cash acquired from SPi
of Php86 million.  Total cash payments include a purchase price consideration
of Php7,024 million and incidental cost of Php90 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">The
purchase consideration has been allocated to the assets and liabilities on the
basis of fair values at the date of acquisition.  The fair values of the
identifiable acquired assets and liabilities of SPi as at the time of the
acquisition and the corresponding carrying amounts immediately before the
acquisition 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:94.2%;margin-left:.25in;border-collapse:collapse'>

 <tr>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Previous Carrying Value</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Fair Value Recognized on Acquisition</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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">In U.S. Dollar</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:.05in;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">In Php(1)</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">In U.S. Dollar</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">In Php(1)</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=4 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Assets:</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Property, plant and equipment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">862</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">19</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,019</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Goodwill</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">72</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,830</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">130</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,906</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Intangible assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">18</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">972</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Prepayments and advances and <br>
 refundable deposits &#150; net of current portion</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">51</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">86</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">86</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Trade and other receivables</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,915</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,915</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Current portion of prepayments and
 advances and refundable deposits</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">96</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">96</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">129</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,840</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">208</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,045</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Liabilities:</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deferred income tax liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">395</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin:0in;margin-bottom:.0001pt;line-height:normal;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deferred credits and
 other noncurrent liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">182</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">182</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accounts payable</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,942</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,942</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accrued expenses and other current liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">412</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">66</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,574</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">72</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,931</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net assets acquired</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">63</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,266</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 136</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,114</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>   Converted to
Philippine Peso using the exchange rate at the time of purchase of Php</i><i>53.11</i><i> to
US$1.00</i><i>.</i></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">Intangible
assets, as determined by an independent appraiser, amounted to Php972 million
relating to SPi&#146;s customer relationships and self-developed software with estimated
remaining useful lives of seven and four years, respectively.</p>

<p style='text-indent:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">SPi was accounted for in the
consolidated financial statements using the purchase method of accounting,
which resulted in goodwill amounting to Php6,906 million.  Goodwill pertains to
the assembled workforce of SPi and other unidentified intangible assets that
did not qualify as intangible assets under IAS 38.</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 consolidated revenues would
have been increased by Php1,724 million while our net income would have been
decreased by Php295 million for the year ended December 31, 2006 if the acquisition
of SPi and its direct and indirect Philippine offshore subsidiaries had actually
taken place on January 1, 2006.  Total net income of SPi and its direct and
indirect Philippine offshore subsidiaries included in our 2006 consolidated
statement of income from the time of acquisition until December 31, 2006
amounted to Php68 million.</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>ePLDT&#146;s
Acquisition of CyMed</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 August 11, 2006, ePLDT, through
its direct subsidiary SPi, acquired 100% equity interest of CyMed for an
aggregate purchase price of US$37 million, inclusive of certain debt
obligations.  As at August 15, 2006, the net cash outflow related for this acquisition
was Php1,774 million, representing cash payments of Php1,831 million, net of
cash acquired from CyMed of Php57 million.  Total cash payments include a purchase
price consideration of Php1,716 million, working capital amounts and other net
debt adjustments totaling Php102 million and incidental cost of Php13 million.</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">The purchase
consideration has been allocated to the assets and liabilities on the basis of
fair values at the date of acquisition.  The fair values of the identifiable
acquired assets and liabilities of CyMed as at the time of the acquisition and
the corresponding carrying amounts immediately before the acquisition 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:94.22%;margin-left:.25in;border-collapse:collapse'>

 <tr>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:0in;margin-right:4.65pt;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Previous Carrying
 Value</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Fair Value Recognized on Acquisition</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-right:4.65pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">In U.S. Dollar</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:.25in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">In Php(1)</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">In U.S. Dollar</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">In Php(1)</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=4 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Assets:</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Property, plant and equipment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">39</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Goodwill</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">108</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">25</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,223</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Intangible assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">336</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deferred income tax assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">57</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">57</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Trade and other receivables</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">148</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">148</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Notes receivable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">108</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">108</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:-13.5pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Current portion of advances and <br>
 refundable deposits</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">20</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-right:44.95pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">510</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">41</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,961</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Liabilities:</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;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=' background:#F3F3F3;
 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">Interest-bearing financial liabilities &#150;
 <br>
 net of current portion</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">72</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;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:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accounts payable and other current liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">58</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">58</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">130</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">130</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net assets acquired</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;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:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">380</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">37</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,831</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"><i>(1)</i><i>   Converted
to Philippine Peso using the exchange rate at the time of purchase of Php49.03</i><i> to US$1.00</i><i>.</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">CyMed was accounted for in the
consolidated financial statements using the purchase method of accounting,
which resulted in goodwill amounting to Php1,223 million.  Goodwill pertains to
assembled workforce of CyMed and other unidentified intangible assets that did
not qualify as intangible assets under IAS 38.</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">Intangible assets pertaining to CyMed&#146;s
customer relationship was determined at Php336 million with an estimated useful
life of five years.  Intangible assets were valued by an independent appraiser.</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">Our
consolidated revenues would have been increased by Php681 million while our net
income would have been decreased by Php40 million for the year ended December
31, 2006 if the acquisition of CyMed had actually taken place on January 1, 2006.
Total net loss of CyMed included in our 2006 consolidated statement of income
from the time of acquisition until December 31, 2006 amounted to 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"><b><i>2007
Acquisitions</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:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>SPi&#146;s
Acquisition of Springfield Service Corporation, or Springfield</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">On April 12,
2007, SPi acquired, through a wholly-owned U.S. subsidiary, a 100% equity
interest in Springfield for an aggregate purchase price of US$35 million, or
Php1,664 million, plus possible future earn-out payments with an aggregate fair
value at acquisition date of US$18 million, or Php855 million.  As at date of
acquisition, the net cash outflow related to acquisition was US$35 million, or
Php1,664 million, representing cash payments of US$34 million, or Php1,616
million,  net of cash acquired from Springfield of US$1 million, or Php48
million, and incidental cost amounted to US$1.3 million, or Php63 million.
Total purchase price consideration including the fair value of possible future
earn-out payments at acquisition date amounted to US$53 million, or Php2,520
million, inclusive of  other net debt adjustments totaling US$8 million, or
Php380 million.  As at December 31, 2007, the fair value of possible future
earn-out payments, as revised after effecting adjustments on forecasted
earn-out and accretion, amounted to US$25 million, or Php1,048 million.  See <i>Note
19 &#150; Deferred Credits and Other Noncurrent Liabilities </i>and <i>Note 21 &#150;
Accrued Expenses and Other Current Liabilities</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
purchase consideration has been allocated to the assets and liabilities on the
basis of fair values at the date of acquisition.  The fair values of the
identifiable acquired assets and liabilities of Springfield as at the time of
the acquisition and the corresponding carrying amounts immediately before the
acquisition 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:94.22%;margin-left:.25in;border-collapse:collapse'>

 <tr>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:4.65pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Previous Carrying
 Value</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Fair Value Recognized on Acquisition</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-right:4.65pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">In U.S. Dollar</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:18.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php(1)</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">In U.S. Dollar</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:18.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php(1)</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=4 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid;height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Assets:</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:26.45pt;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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Property, plant and equipment</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">143</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">143</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Goodwill</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;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'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Intangible assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">333</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">380</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Trade and other receivables</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">143</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">143</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">667</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">60</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,853</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Liabilities:</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Deferred income tax liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">190</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Noncurrent liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accounts payable and other current liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">475</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">95</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-right:44.95pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">523</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">333</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net assets acquired</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.65pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">144</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">53</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:26.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,520</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"><i>(1)</i>   <i>Converted
to Philippine Peso using the exchange rate at the time of purchase of Php47.536
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' style="margin-top:0;margin-bottom:0">Springfield was accounted for in
our consolidated financial statements using the purchase price method of
accounting, which resulted in goodwill amounting to Php2,139 million.  Goodwill
pertains to the assembled workforce of Springfield and other unidentified
intangible assets that did not qualify as intangible assets under IAS 38.</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">Intangible assets pertaining to Springfield customer relationship was determined at Php380 million with an estimated useful
life of seven years.  Intangible assets was valued by an independent appraiser
based on multiple excess earnings approach using a discount rate of 15%.</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">Our
consolidated revenues would have been increased by Php333 million while our net
income would have been decreased by Php11 million for the year ended December
31, 2007 if the acquisition of Springfield had actually taken place on January
1, 2007.  Total net income of Springfield included in our 2007 consolidated
statement of income from the time of acquisition until December 31, 2007
amounted to Php164 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>Smart&#146;s
Investment in 3rd Brand</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 2007, Smart
also recognized intangible assets for technology and license costs in 3rd Brand
amounting to US$4 million, or Php172 million.  Said technology and license
costs were estimated to have a useful life of 10 years.</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>Smart&#146;s
Supply Agreement with THISS Technologies Pte. Ltd., or THISS</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 2007, Smart recognized
intangible assets for technology and license costs incurred in connection with
SCH&#146;s GSM connectivity service for the commercial shipping sector.  Smart
(through SCH) engaged the services of THISS as developer and supplier for this
service.  As at December 31, 2007, US$1 million, or Php41 million, has been recognized
as intangible assets for this project.</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>Other
Intangible Assets</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">Other
intangible assets consist 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:96.64%;margin-left:.25in;border-collapse:collapse'>

 <tr>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <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: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   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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <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   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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">2006</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 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"><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>Gross</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>Net</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   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">Gross</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">Net</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Estimated <br>
 Useful Lives</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Remaining <br>
 Useful Lives</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:9.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Carrying <br>
 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=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Accumulated
 Amortization</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>&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='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:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Carrying Amount</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:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accumulated
 Amortization</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">&nbsp;</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='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:8.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=7 valign=bottom style=' border: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">(in million pesos)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Customer list</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1 &#150; 10 years</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4 &#150; 6 years</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,486</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.1pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">384</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>1,102</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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=bottom style=' background:#E0E0E0;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">1,332</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">195</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.1in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,137</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Spectrum</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>15 years</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:8.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>12 years</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:13.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,205</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:22.1pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">268</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 937</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.0pt'>
 <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=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:4.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,205</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:22.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">187</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.1in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,018</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Technology application</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4 &#150; 10 years</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2 &#150; 10 years</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">812</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.1pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">516</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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> 296</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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=bottom style=' background:#E0E0E0;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">601</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">471</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.1in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 130</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Licenses</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.55pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>5 &#150; 17 years</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4 &#150; 15 years</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">318</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.1pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">182</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 136</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.5pt;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;background:#F3F3F3;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">318</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">88</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.1in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 230</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:17.45pt;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:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:17.45pt;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:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:8.9pt;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:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.25pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,821</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.1pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,350</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,471</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:6.5pt;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:
 double windowtext 1.5pt;background:#E0E0E0;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">3,456</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:22.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 941</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.1in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,515</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 future amortization of other
intangible assets as at December 31, 2007 is 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:96.98%;margin-left:.25in;border-collapse:collapse'>

 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-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">(in
 million pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right' style="margin-top:0;margin-bottom:0">382</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right' style="margin-top:0;margin-bottom:0">378</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">2010</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right' style="margin-top:0;margin-bottom:0">347</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">2011</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right' style="margin-top:0;margin-bottom:0">317</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">2012 and onwards</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right' style="margin-top:0;margin-bottom:0">1,047</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Balance at end of year</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:56.2pt;text-align:right' style="margin-top:0;margin-bottom:0">2,471</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>Impairment
Testing of 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:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Goodwill
from Acquisition of SBI</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 test
for recoverability of goodwill recognized in connection with the acquisition of
SBI was applied to our wireless asset group, representing the lowest level for
which identifiable cash flows are largely independent of the cash flows of
other groups of assets and liabilities.</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">Although
revenue streams may be segregated between Smart and SBI through subscribers
availing themselves of their respective cellular and wireless broadband
services, the cost items and cash flows are difficult to carve out, largely due
to the significant portion of shared and common-used networks/platforms.  In
the case of SBI, it provides broadband wireless access to its subscribers using
Smart&#146;s cellular base stations, fiber optic and IP backbone.  With the common
use of wireless assets of Smart in providing wireless services, the lowest
asset group for SBI for which cash flows could be clearly identified from other
groups of assets is Smart&#146;s wireless business segment.</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">Our
wireless business segment is our largest revenue and cash flow contributor.  As
such, there is no impairment of our wireless business segment.  As at December
31, 2007, the recoverable amount of this segment is determined on the basis of
value in use calculations using cash flow projections based on the financial
budgets approved by the board of directors, covering a 5-year period from 2008
to 2012.  The pre-tax discount rate applied to cash flow projections is 8.4%
and cash flows beyond the 5-year period are determined using a 2.5% growth rate
that is the same as the long-term average growth rate for the
telecommunications industry.</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>Goodwill from Acquisition of SPi
and its Subsidiary, CyMed</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 goodwill acquired through the
SPi and CyMed transactions was allocated for impairment testing to each of the
cash-generating units of those businesses, namely medical transcription,
litigation and publishing.  The recoverable amount of goodwill was determined
using the value in use approach.  Value in use was based on the cash flow
projections of the most recent financial budgets/forecasts approved by the board
of directors, which management believes are reasonable and are management&#146;s
best estimate of the ranges of economic conditions that will exist over the
remaining useful life of the asset.  The discount rate applied was 15% which
was based on the weighted cost of capital adjusted for the difference in
currency and specific risks associated with the assets or business of a cash-generating
unit.</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
recognized an impairment loss of Php908 million in 2007 pertaining to the medical
transcription business of SPi, since the carrying amount of the individual
assets pertaining to the medical transcription business exceeded the
recoverable amount in 2007.</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>Goodwill from Acquisition of
Level Up!</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">Goodwill acquired from our acquisition
of a 60% equity interest in Level Up! was tested for impairment where the
recoverable amount was determined using the value in use approach.  Value in
use was based on the cash flow projections on the most recent financial budgets/forecasts
approved by the board of directors.  The discount rate applied was 22% which
was based on the weighted cost of capital.  We recognized an impairment loss of
Php254 million pertaining to the goodwill of ePLDT&#146;s acquisition of Level Up!
in 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>Goodwill
from Acquisition of Digital Paradise</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">Goodwill acquired from the
acquisition of Digital Paradise was tested for impairment based on the
recoverable amount of the long lived assets where recoverable amount was
determined based on the cash flow projections on the most recent financial
budgets/forecast approved by the board of directors.  The discount rate applied
was 22%.  We impaired goodwill acquired from ePLDT&#146;s acquisition of Digital
Paradise amounting to Php29 million in 2007.</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%;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. Cash and Cash Equivalents</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;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"><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:96.94%;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;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:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:13.85pt'>
 <td   valign=bottom style=' border:none;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=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:13.85pt'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash on
 hand and in banks (Note 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>3,944</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">3,416</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Temporary
 cash investments (Note 26)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>13,503</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,454</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 2.25pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>17,447</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 2.25pt;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,870</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">Cash in banks earns
interest at prevailing bank deposit rates.  Temporary cash investments are made
for varying periods of up to three 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 cash investments.</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>13. Investment in Debt Securities</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;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b><i>Investment
of ePLDT 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='page-break-after:avoid' style="margin-top:0;margin-bottom:0">ePLDT has a 22.5% interest in convertible securities
of SIHI, the parent company of Stradcom Corporation, or Stradcom, 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&#146;s continuous losses and recurring excess of current
liabilities over current assets.  On this basis, we recognized an impairment
provision in respect of our total investment in SIHI of Php616 million in 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">In 2007, Stradcom entered into a
Lenders&#146; Agreement for the issuance of Asset-Backed Bonds amounting to Php1.6
billion.  The proceeds were used to payoff all of Stradcom&#146;s debts and trade
payables and capital expenditures for upgrade in its new inter-connectivity
business, which is expected to contribute significantly to Stradcom&#146;s operating
results in future years. </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 December 10, 2007, ePLDT and SIHI agreed to extend the redemption
date of the convertible securities of SIHI owned by ePLDT to January 31, 2008
and fixed the redemption price at Php1,170 million as at December 31, 2007
(original maturity date) plus an additional amount of Php256,760 per day from
December 31, 2007 until actual redemption of such shares.  The redemption date
was further extended to February 28, 2008, on which date SIHI paid Php1,187
million in final redemption amount.</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 December 31, 2007, with the
foregoing development with Stradcom, the provision for impairment from
investment in SIHI amounting to Php616 million was reversed to profit or loss.
See <i>Note 5 &#150; Income and Expenses</i>.  Cumulative dividends and interest
recognized in the consolidated statement of income amounted to Php499 million
in 2007.  As at December 31, 2007, the balance of investment in SIHI amounted to
Php1,115 million.  Investment in SIHI as at December 31, 2006 was carried at
nil value.</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 accumulated impairment losses are 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:96.94%;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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:11.6pt'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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;height:11.6pt'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>616</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">616</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Reversal of impairment provision
 for the year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(</b><b>616)</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;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;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance at end of year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;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"> 616</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>14. Trade and Other Receivables</b></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">This
account consists of receivables from:</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:96.94%;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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Retail subscribers (Note 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>8,179</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">7,874</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Corporate subscribers (Notes
 22 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>7,915</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,160</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign administrations (Note
 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>5,371</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">6,342</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Domestic carriers (Note 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>1,884</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">1,965</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Dealers, agents and others
 (Notes 22 and 26)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,151</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,587</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;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"><b>25,500</b></p>
 </td>
 <td   valign=top style=' border:none;background:#F3F3F3;
 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">26,928</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Less allowance for doubtful
 accounts</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>12,855</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,770</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>12,645</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">10,158</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">Movements in the allowance for
doubtful accounts are 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:96.94%;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   valign=bottom 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:4.5pt;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Total</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:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Retail Subscribers </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:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Corporate Subscribers</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:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Foreign Administrations </b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:.05in;text-align:center' style="margin-top:0;margin-bottom:0"><b>Domestic Carriers</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:.05in;text-align:center' style="margin-top:0;margin-bottom:0"><b>Dealers, Agents and Others</b></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="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='margin-right:.05in;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:.05in' style="margin-top:0;margin-bottom:0"><b>December
 31, 2007</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Balance
 at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">16,770</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,847</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">6,418</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,506</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">504</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,495</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Provisions for the year<br>
 (Notes 3 and 5)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">417</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">226</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">151</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">40</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Translation
 adjustments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(91)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(91)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Reversals/reclassifications</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(889)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">213</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(603)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(175)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(123)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(201)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Write-offs
 </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(3,352)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,968)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,284)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(100)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Balance
 at end of year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">12,855</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">4,318</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,875</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,047</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">381</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,234</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' 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>
 <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>
 <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>
 <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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Individual
 impairment</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">12,115</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3,944</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,509</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,047</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">381</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,234</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Collective
 impairment</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">740</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">374</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">366</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">12,855</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">4,318</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,875</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,047</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">381</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,234</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <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'>
 <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>
 <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>
 <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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Gross
 amount of receivables, individually impaired, before deducting any
 individually assessed impairment allowance</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">12,168</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3,951</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,555</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,047</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">381</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,234</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;text-indent:-8.5pt' 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:.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>
 <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>
 <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 style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:.05in' style="margin-top:0;margin-bottom:0"><b>December
 31, 2006</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Balance
 at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">18,525</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">7,657</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">6,196</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,497</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">780</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,395</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Provisions for the year<br>
 (Notes 3 and 5)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">736</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">273</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">324</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">25</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">114</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Translation
 adjustments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(24)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(24)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Business
 combination </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"> 71</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">71</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Reversals/reclassifications</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(654)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(317)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(45)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(16)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(276)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Write-offs
 </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,884)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1,766)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(104)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(14)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Balance
 at end of year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">16,770</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,847</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">6,418</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,506</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">504</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,495</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' 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>
 <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>
 <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>
 <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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Individual
 impairment</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">15,828</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,180</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">6,143</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,506</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">504</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,495</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Collective
 impairment</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">942</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">667</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">275</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">16,770</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,847</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">6,418</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,506</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">504</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,495</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' 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>
 <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>
 <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>
 <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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Gross
 amount of receivables, individually impaired, before deducting any
 individually assessed impairment allowance</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">15,895</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,190</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">6,200</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,506</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">504</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,495</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">Receivables
from carriers represent receivables arising from interconnection agreements
with other telecommunication carriers.  The aforementioned amount of receivable
is shown net of related payable to the same telecommunications carriers because
a legal right of offset exists.</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">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 up to September 30, 2007 for an advance payment of US$50
million 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.  The RPD expired on December 4, 2007.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Sale of receivables under the RPD amounted to US$4
million, or Php167 million, and US$6 million, or Php272 million, for the years
ended December 31, 2007 and 2006, respectively.  Loss on sale of receivables
under the RPD included in other expenses account amounted to US$0.1 million, or
Php6 million and US$0.5 million, or Php27 million for the years ended December
31, 2007 and 2006, 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">&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' 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:96.96%;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 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'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2007</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=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">2006</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=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:63.0pt;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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;text-align:justify' style="margin-top:0;margin-bottom:0">At net
 realizable value</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>554</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">556</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;text-align:justify' style="margin-top:0;margin-bottom:0">At cost</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>808</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">719</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Spare parts and supplies:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;text-align:justify' style="margin-top:0;margin-bottom:0">At net
 realizable value</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>502</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">513</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;text-align:justify' style="margin-top:0;margin-bottom:0">At cost</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,385</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,397</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">Others:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;text-align:justify' style="margin-top:0;margin-bottom:0">At net
 realizable value</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>111</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">161</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;text-align:justify' style="margin-top:0;margin-bottom:0">At cost</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>112</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">161</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">At lower of cost or net
 realizable value (Note 26)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,167</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,230</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>16. Prepayments</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:96.96%;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 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-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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;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=center style='margin-top:0in;margin-right:0in;
 margin-bottom:1.0pt;margin-left:53.95pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Prepaid
 taxes (Notes 6 and 25)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>3,995</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">4,844</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Prepaid
 fees and licenses (Notes 5 and 25)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>236</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">24</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Prepaid
 insurance (Note 22)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>184</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">189</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Prepaid
 rent (Note 24)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>61</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">128</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Other
 prepayments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>173</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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">150</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,649</b></p>
 </td>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 background:#F3F3F3;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">5,335</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Less &#150;
 current portion of prepayments</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,368</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,967</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net of
 noncurrent portion of prepayments</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,281</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,368</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">Prepaid
taxes include creditable withholding taxes, input VAT and real property taxes.</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>17.     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
accounts for the years ended December 31, 2006 and 2007 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:95.18%;margin-left:23.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid 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=3 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Preferred Stock</b>
 &#150; <br>
 Php10 par value per share</p>
 </td>
 <td   colspan=4 valign=bottom style=' border:none;
 border-top:solid 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 HH</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>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>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=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 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; <br>
 Php5 par value per share</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=2 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>&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='margin-right:2.95pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Amount</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'>
 <p style='' 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"><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=7 valign=bottom style=' border:none;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 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;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:13.7pt;text-align:right' style="margin-top:0;margin-bottom:0">823</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <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;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:17.25pt;text-align:right' style="margin-top:0;margin-bottom:0">234</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <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=bottom style=' border:none;background:#F3F3F3;
 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;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:20.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <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;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:17.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <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=' background:#E0E0E0;
 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, 2006</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.15in;text-align:right' style="margin-top:0;margin-bottom:0">407</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:12.6pt;text-align:right' style="margin-top:0;margin-bottom:0">36</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:13.7pt;text-align:right' style="margin-top:0;margin-bottom:0"> 443</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php4,433</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:17.25pt;text-align:right' style="margin-top:0;margin-bottom:0">181</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php904</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:12.6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.15in;text-align:right' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(11)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:17.25pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:.05in' style="margin-top:0;margin-bottom:0">Issuance</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.15in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:12.6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:13.7pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:17.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Balance at
 December 31, 2006</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.15in;text-align:right' style="margin-top:0;margin-bottom:0"> 406</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:12.6pt;text-align:right' style="margin-top:0;margin-bottom:0">  36</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:13.7pt;text-align:right' style="margin-top:0;margin-bottom:0"> 442</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php4,424</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:17.25pt;text-align:right' style="margin-top:0;margin-bottom:0"> 188</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php942</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: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='margin-right:.15in;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='margin-right:12.6pt;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='margin-right:20.5pt;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='margin-right:17.25pt;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=bottom style=' background:#E0E0E0;
 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, 2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.15in;text-align:right' style="margin-top:0;margin-bottom:0"> 406</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:12.6pt;text-align:right' style="margin-top:0;margin-bottom:0">  36</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:13.7pt;text-align:right' style="margin-top:0;margin-bottom:0"> 442</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php4,424</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:17.25pt;text-align:right' style="margin-top:0;margin-bottom:0"> 188</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php942</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:7.5pt;text-align:right' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:12.6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.15in;text-align:right' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">(8)</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:17.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <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=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.15in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:12.6pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:13.7pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:17.25pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Balance at
 December 31, 2007</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.15in;text-align:right' style="margin-top:0;margin-bottom:0"> 405</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:12.6pt;text-align:right' style="margin-top:0;margin-bottom:0">  36</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:13.7pt;text-align:right' style="margin-top:0;margin-bottom:0"> 441</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php4,417</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:17.25pt;text-align:right' style="margin-top:0;margin-bottom:0"> 188</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">Php943</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>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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The Series A to EE 10% Cumulative Convertible Preferred
Stocks earn cumulative dividends at an annual rate of 10%.  After the lapse of
one 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 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,
2007, was Php5.00 per share.  The number of shares of Common Stock issuable at
any time upon conversion of one share of the subscriber investment plan, or
SIP, or the 10% Cumulative Convertible Preferred Stock is determined by
dividing Php10.00 by the then applicable conversion price.</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">In case the shares of
Common Stock at anytime outstanding are subdivided into a greater or
consolidated into a lesser number of shares, then the minimum conversion price
per share of Common Stock will be proportionately decreased or increased, as
the case may be, and in the case of a stock dividend, such price will 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 will 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' 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 its sole discretion, shall deem appropriate.</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">At PLDT&#146;s
option, the Series A to EE 10% Cumulative Convertible Preferred Stocks are
redeemable at par value plus accrued dividends five years after the year of
issuance.</p>

<p style='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 January 30, 2007, the board of
directors designated 150,000 shares of serial preferred stock as Series HH 10%
Cumulative Preferred Stock for issuance from January 1, 2007 up to December 31,
2009.</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_LINK77"></a><a name="OLE_LINK76">The issuance of SIP Series FF, GG
and HH is an exempt transaction under Section 10.2 of the Securities Regulation
Code, as confirmed by the Philippine SEC on April 2, 2007.</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">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.</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
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"><b><i>Common Stock</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">On January 29, 2008, our board of
directors approved a share buyback program of up to two million shares of
PLDT&#146;s common stock, representing approximately 1.1% of PLDT&#146;s total
outstanding shares of common stock.  The share buyback program reflects PLDT&#146;s
commitment to capital management as an important element in enhancing
shareholder value.  This also reinforces initiatives that PLDT has already
undertaken such as the declaration of special dividends in addition to the
regular dividend pay out of 70% on common shares, after having determined that
PLDT has the capacity to pay additional returns to shareholders.  The share
buyback program contemplates that PLDT will reacquire shares on an
opportunistic basis, direct from the open market through the trading facilities
of the PSE and NYSE.</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 March 25, 2008, we acquired a
total of 98,000 shares of common stock based on the buyback program.  See also <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:.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. Interest-bearing Financial 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 the following:</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:96.94%;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;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:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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-bottom:1.0pt;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:53.95pt;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=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Long-term portion of interest-bearing
 financial liabilities - <br>
 net of current portion:</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' background:#E0E0E0;
 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=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term debt (Note 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>53,372</b></p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 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">63,769</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Obligations under finance lease (Notes 8 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>15</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">106</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Preferred stock subject to mandatory redemption (Note
 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">1,369</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;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"><b>53,387</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;
 background:#E0E0E0;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=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">65,244</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=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"><b>&nbsp;</b></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=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Current portion of interest-bearing
 financial liabilities:</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right;
 text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
 margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.05in;margin-bottom:0in;
 margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Notes payable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>493</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.0pt;margin-bottom:.0001pt;text-align:right;
 text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">201</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term debt maturing within one year (Note 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>6,775</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">16,184</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Obligations under finance lease maturing within one
 year (Notes 8 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>481</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">924</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Preferred stock subject to mandatory redemption (Note
 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>1,015</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">&#150;</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;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"><b>8,764</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <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=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,309</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Unamortized debt discount, representing debt issuance
costs and any difference between the fair value of consideration given or
received on initial recognition, included in the 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:96.94%;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;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:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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=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=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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:53.95pt;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=' background:#E0E0E0;
 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=bottom style=' background:#E0E0E0;
 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"><b>4,472</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">5,953</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Obligations under finance lease (Notes 8 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>444</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">540</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Preferred stock subject to mandatory redemption</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>56</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">260</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total unamortized debt discount at end of year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,972</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,753</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">The
following table describes all changes to unamortized debt discount as at
December 31, 2007 and 2006.</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:96.94%;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;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>2007</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=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=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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:53.95pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Unamortized debt discount at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6,753</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">13,347</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Additions
 during the year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>59</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">48</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Settlements and conversions during the year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(96)</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(2,733)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Revaluations during the year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(678)</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(595)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accretion
 during the year charged to interest expense</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(1,066)</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(3,314)</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total unamortized debt discount at end of year</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,972</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&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;
 background:#F3F3F3;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">6,753</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>Long-term
Debt</b></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term debt 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 align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Description</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Interest Rates</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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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='margin-left:.25in;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 style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>U.S. Dollar Debt:</i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=top style=' background:#E0E0E0;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=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Export Credit Agencies-Supported Loans:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Kreditanstalt f&#252;r Wiederaufbau, or KfW</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">5.65% - 7.58% and US$ LIBOR + 0.55% - 2.5% in 2007
 and 2006</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$130</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php5,365</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$201</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php9,877</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Finnvera, Plc, or Finnvera</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$ LIBOR + 0.05% in 2007 and 7.53% - 7.75% and US$
 LIBOR + 0.05% in 2006</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>49</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,048</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">69</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,381</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:27.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Nippon Export and Investment <br>
 Insurance of Japan, or NEXI</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$ LIBOR + 1% in 2007 <br>
 and in 2006</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">25</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,215</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">6.60% and US$ LIBOR + 0.15% - 0.65% and GOVCO&#146;s cost
 + 0.20% in 2007 and 5.83% - 6.6% and US$ LIBOR + 0.15% - 1.60% and GOVCO&#146;s
 Cost + 0.20% in 2006</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>47</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">508</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p 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;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 180</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>7,460</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 305</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">14,981</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Fixed Rate Notes</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">7.85% - 11.375% in 2007 <br>
 and 2006</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>676</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>28,016</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">835</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">40,971</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Term Loans:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Debt Exchange Facility</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2.25% and US$ LIBOR + 1% <br>
 in 2007 and 2006</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>187</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>7,742</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">176</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,615</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">GSM Network Expansion Facilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">4.49% - 4.70% and US$ LIBOR <br>
 + 0.75% - 0.815% in 2007 and 4.49% - 4.70% and US$ LIBOR + 0.815% - 3.25% in
 2006</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>194</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>8,024</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">194</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">9,509</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$ LIBOR + 0.40% and 6% - 10% in 2007 and US$ LIBOR <br>
 + 0.40% - 3.625% and 1.75% - 10% in 2006</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>153</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">487</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Satellite Acquisition Loans</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">5.66% and US$ LIBOR + 1.75% - 2.75% in 2007 and 2006</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>28</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,145</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">42</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,083</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$1,269</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>52,540</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$1,562</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">76,646</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 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'>
 <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"><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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Philippine Peso Debt:</i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Peso Fixed Rate Corporate Notes</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">5.625% - 15% in 2007 and 15% - 15.816% in 2006</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,967</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">808</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Term Loans:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Secured Term Loans</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">7.09%, MART1 + 5.70% and 90-day PHILBOR + 3% in 2007
 and 7.09% &#150; 15% and 90-day PHILBOR + 3% in 2006</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <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>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Unsecured Term Loans</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">6.125% and MART1 + 0.75% <br>
 in 2007 and MART1 + 0.75% in 2006</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,634</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,488</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right: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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>7,607</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,307</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total long-term debt</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;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=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>60,147</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">79,953</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Less portion maturing within one year (Note 26)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;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=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 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;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6,775</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,184</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=left style='margin:0in;margin-bottom:.0001pt;
 text-align:left;page-break-after:avoid;punctuation-wrap:hanging;text-autospace:
 ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">Noncurrent portion of long-term debt (Note 26)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php53,372</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php63,769</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"><i>Note:  Amounts presented are net of 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">&nbsp;</p>

<br clear=all
style='page-break-before:always'>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The
scheduled maturities of our outstanding consolidated long-term debt at nominal
values as at December 31, 2007 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:96.94%;margin-left:18.4pt;border-collapse:collapse;width:96.94% !msorm;
 border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;border:none !msorm;border-top:solid windowtext 1.5pt !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p style='margin-top: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;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:2.85pt;
 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   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top: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;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=center style='margin-top:3.0pt;margin-right:2.85pt;
 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>Year</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 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=4 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>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">152</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">6,315</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">558</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">6,873</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">274</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">11,353</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">570</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">11,923</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2010</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">82</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">3,391</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">568</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">3,959</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2011</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">26</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">1,075</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">568</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">1,643</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">2012 and onwards</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">841</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">34,837</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">5,384</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">40,221</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;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">1,375</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">56,971</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:14.85pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,648</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:13.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">64,619</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>U.S.
Dollar Debt:</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"><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:.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>Kreditanstalt f&#252;r Wiederaufbau,
or KfW</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">KfW, a German state-owned
development bank, is PLDT&#146;s largest single creditor.  As at December 31, 2007,
we owed an aggregate principal amount of US$130 million, or Php5,365 million,
to KfW, as follows:</p>

<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='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>US$95
 million provided under various export credit agency-backed facilities, of
 which US$14 million was in connection with our expansion and service
 improvement programs, and US$81 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='punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other'>US$35
 million provided for the 15% downpayment portion and credit facilities
 without guarantee/insurance cover from the export credit agencies, of
 which US$22 million was in connection with the US$149 million refinancing
 facility discussed in the following paragraphs.</li>
</ul>

<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 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, or Php5,796 million, under this
facility as at December 31, 2007.  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' 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$55 million will mature in 2008, US$44 million will mature
in 2009 and US$31 million will mature in 2010.  Principal amortizations on
these loans are generally payable in equal semi-annual installments.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Finnvera, Plc, or Finnvera</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 December 31, 2007, a
principal amount of US$50 million (US$49 million, net of unamortized debt
discount of US$1 million), or Php2,070 million (Php2,048 million, net of
unamortized debt discount of Php22 million) of Smart&#146;s debt was provided by
various banks under an export credit agency-backed facility in connection with
Smart&#146;s GSM expansion program.  This facility is covered by a guarantee from
Finnvera, the Finnish Export Credit Agency, for 100% of political and
commercial risk for the refinancing facility of GSM Phases 5A and 5B.  </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 US$100
million refinancing facility was obtained on February 11, 2005 in relation to
Smart&#146;s GSM Phases 5A and 5B loans which were prepaid on 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' style="margin-top:0;margin-bottom:0">Of the amount outstanding under
the remaining Finnvera guaranteed loan, US$20 million will mature in 2008,
US$20 million will mature in 2009 and US$10 million will mature in 2010.
Principal amortization on this loan is payable in equal semi-annual
installments.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Nippon Export and Investment
Insurance of Japan, or NEXI</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 November 28, 2002, Smart signed
a US$100 million term loan facility supported by NEXI, of which US$60 million
was drawn on November 28, 2003 and US$40 million on April 5, 2004.  This loan
is payable semi-annually over four years in eight equal installments starting
May 28, 2004 with final repayment due in November 2007.  The outstanding balance
was fully paid in the amount of US$25 million on May 25, 2007.</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>Other Export Credit Agency
Supported Loans</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 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 and Italy, in the aggregate outstanding principal amount of
US$1 million, or Php47 million, as at December 31, 2007.  The outstanding
balance under this loan will mature on various dates from April 1, 2008 to
September 15, 2008.  Smart, likewise, obtained loans guaranteed by the export
credit agencies of Calyon (SACE) Hypo (GIEK).  The outstanding balance was
fully paid in the amounts of US$0.5 million and US$0.7 million on May 30, 2007
and October 1, 2007, 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><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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT has
the following non-amortizing fixed rate notes outstanding as at December 31,
2007 and 2006:</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:96.0%;margin-left:18.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid;height:6.6pt'>
 <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>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   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>Maturity<br>
 Date</b></p>
 </td>
 <td   colspan=3 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>2007</b></p>
 </td>
 <td   colspan=3 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">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=5 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$300,000,000</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 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   colspan=2 valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$296</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php12,273</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$296</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php14,523</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$250,000,000</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 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   colspan=2 valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>245</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>10,136</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">244</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,963</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$135,886,000</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:10.7pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10.500%</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:9.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">April 15, 2009</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>135</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>5,607</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">166</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,148</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$  19,310,000</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 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   colspan=2 valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">19</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">941</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$110,068,000</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 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   colspan=2 valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">110</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,396</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;
 background:#F3F3F3;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;
 background:#F3F3F3;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">&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;
 background:#F3F3F3;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>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <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>676</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Php28,016</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">US$835</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php40,971</p>
 </td>
 </tr>
 <tr height=0>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 <td  style='border:none'></td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>Consent Solicitation for the
US$175 Million 10.5% Notes due 2009, or 2009 Notes, US$250 Million 11.375%
Notes due 2012, or 2012 Notes, and US$300 Million 8.35% Notes due 2017, or 2017
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 2007, we conducted a consent
solicitation of holders of our 11.375% Notes due 2012, 10.5% Notes due 2009 and
8.35% Notes due 2017, or the Notes, in respect of amendments to the terms of
the Notes that allow PLDT greater flexibility to make certain restricted
payments, pay dividends or make distributions, while reducing PLDT&#146;s permitted
leverage ratios pursuant to the terms of the Notes.  These amendments to the
terms of the Notes became effective on December 3, 2007, the date on which PLDT
made the applicable consent payments, after holders of more than 51% of the
aggregate principal amount of the Notes gave their consents for these
amendments to the terms of the Notes prior to the expiration of the consent
solicitation period and after the execution of relevant amendments to the
indentures governing the Notes on November 21, 2007.</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>Term
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:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>US$283
Million Term Loan Facility, or Debt Exchange Facility</i></p>

<p style='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 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.</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">The breakdown of the total outstanding amount of Smart
debt issued to participating Piltel creditors is as follows:</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;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;
2007 Facility in the amount of US$0.2 million which was payable
in full in December 2007;</p>

<p style='margin-left:.5in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;
2008 Facility in the amount of US$2.9 million will be payable in
full in December 2008; and</p>

<p style='margin-left:.5in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;
2014 Facility in the amount of US$280.1 million will be payable
in full in June 2014.</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 December 31, 2007,
outstanding balance of the 2008 Facility and the 2014 Facility amounted to
US$283 million (US$187 million, net of unamortized debt discount of US$96
million), or Php11,721 million (Php7,742 million, net of unamortized debt discount
of Php3,979 million).  The 2007 Facility was fully paid in the amount of US$0.2
million on December 28, 2007.</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">Interest for the 2008 Facility and the 2014 Facility
is payable every quarter at a floating rate of
three months US$ LIBOR plus 1.00% for the 2008 Facility, 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 in
December 2008 at 57.5% of the relevant debt amount.</p>

<p style='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>GSM </i><i>Network Expansion
Facilities</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">On September 13,
2004, Smart signed a US$104 million 5-year term loan facility to finance the
related Phase 7 GSM equipment and services.  The facility was awarded to ABN
AMRO Bank, Banque National de Paribas, Calyon, DBS Bank and Sumitomo Mitsui
Banking Corporation as the Lead Arrangers with Finnish Export Credit, Plc as
the Lender.  The full amount of the facility was drawn on November 22, 2004 at
a fixed rate of 4.49%, of which US$42 million, or Php1,723 million, remained
outstanding as at December 31, 2007.  The loan is payable over five years in
ten equal semi-annual payments starting May 2005 with final repayment in
November 2009.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">On August 8, 2005, Smart signed a
US$30 million commercial facility with NIB to partly finance the related Phase
8 GSM equipment and services contracts.  The facility is a 5-year term loan
payable semi-annually in ten equal installments commencing six months from the
first drawdown date at a floating interest rate of US$ LIBOR plus 0.815% margin
per annum.  The facility was drawn in full on July 11, 2006 for the full amount
of US$30 million at a floating interest rate of 6.21% (5.40% US$ LIBOR plus
0.815% per annum margin).  The first installment payment commenced on January
11, 2007 with final repayment on July 11, 2011.  The amount of US$24 million,
or Php994 million, remained outstanding as at December 31, 2007.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">On August 10, 2005, Smart signed a
loan facility for its GSM Phase 8 financing in the amount of US$70 million.
The facility was awarded to the Bank of Tokyo Mitsubishi Ltd., Mizuho Corporate
Bank Ltd., Standard Chartered Bank and Sumitomo Mitsui Banking Corporation as
the Lead Arrangers, with FEC as the Lender.  Smart opted to utilize only a
total of US$67 million which was drawn on February 15, 2006 and March 13, 2006
for US$10 million and US$57 million, respectively.  The undrawn balance of US$3
million was cancelled.  The facility is a 5-year term loan payable in 10 equal
semi-annual installments with final repayment on September 1, 2010.  Interest
is payable semi-annually at a fixed rate of 4.515% per annum.  As at December
31, 2007, US$44 million, or Php1,816 million, remained outstanding.</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 July 31,
2006, Smart signed a U.S. Dollar term loan facility for US$44.2 million to
partly finance the related Phase 9 GSM equipment and services contracts.  The
Lender is FEC with ABN AMRO Bank N.V., Standard Chartered Bank, Sumitomo Mitsui
Banking Corporation and Mizuho Corporate Bank Ltd. as the Lead Arrangers.  The
facility is a 5-year term loan payable in 10 equal semi-annual installments
commencing six months from the drawdown date at a commercial interest reference
rate, or CIRR, fixed rate of 4.05% per annum plus 0.65% margin.  The facility
was drawn on November 10, 2006 for the full amount of US$44.2 million.  The
first installment commenced on January 16, 2007 with final repayment on July
15, 2011.  As at December 31, 2007, US$35 million, or Php1,464 million,
remained outstanding.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">On October 16, 2006,
Smart signed a U.S. Dollar term loan facility with Metropolitan Bank and Trust
Company to finance the related Phase 9 GSM facility for an amount of US$50
million.  The facility is a 5-year loan payable in 18 equal and consecutive
quarterly installments commencing on the third quarter from the date of the
first drawdown.  Interest rate is floating at three-month US$ LIBOR plus 0.75% per annum margin.  The facility was drawn on October 10, 2007 for the full
amount of US$50 million.  The first installment will commence on July 10, 2008
with final repayment on October 10, 2012. As at December 31, 2007, US$50
million, or Php2,071 million, remained outstanding.</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">As at
December 31, 2007, the aggregate outstanding balance of these loans amounted to
US$195 million (US$194 million, net of unamortized debt discount of US$1
million), or Php8,068 million (Php8,024 million, net of unamortized debt
discount of Php44 million).</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>Other Term Loans</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">On July 1, 2004, CyMed availed itself
of a 5-year interest-bearing advance from an officer of CyMed to fund its
operating expenses, including salaries and other incidental expenses.  The
outstanding balance of this loan as at December 31, 2007 amounted to US$1
million, or Php26 million, which is payable quarterly until July 31, 2009.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">On October 10, 2007, Smart signed
a US$50 million 5-year term loan facility to finance the related Phase 10 GSM
equipment and service contracts.  The facility was awarded to Norddeutsche
Landesbank Girozentrale Singapore Brance (Nord/LB) as the original lender with
Standard Chartered Bank (Hong Kong) Ltd. as the facility agent.  The full
amount of the facility was drawn on March 10, 2008.  The loan is payable over
five years in ten equal semi-annual payments.</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>Satellite</i><i>
Acquisition Loans</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Mabuhay Satellite had a 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 2004, Ex-Im Bank 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.  On the extended
maturity date, the outstanding balance was fully paid in the amount of US$5
million, or Php236 million.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Mabuhay Satellite has an existing
Omnibus Agreement with a syndicate of local banks, or the Banks, which includes
issuance of irrevocable standby Letters of Credit in favor of Ex-Im Bank, as
security under the above credit agreement and a term loan to Mabuhay Satellite
which term loan will mature on various dates from 2007 to 2009.  The
irrevocable standby Letters of Credit have been cancelled after the above
described full payment of the Ex-Im loan.  As at December 31, 2007, the outstanding
amount under the term loan was US$28 million, or Php1,145 million.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' 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; <br>
(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-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">In 2006, the Banks have approved
Mabuhay&#146;s request to extend the maturity of the loan under the Omnibus
Agreement by two years to October 20, 2009, with a 1% increase in the margin on
the deferred amount.</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>Philippine
Peso Debt:</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:31.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Php2,</i><i>770
Million Peso Fixed Rate Corporate Notes</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 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.</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 was repaid on
November 11, 2002, Php500 million was repaid
on November 9, 2004 and Php770 million was
repaid 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;page-break-after:avoid' 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 was repaid on June 9,
2003, Php100 million was repaid on June 9,
2005 and Php810 million was repaid on June 12,
2007.</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>Php5
Billion Peso Fixed Rate Corporate Notes</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">On February
15, 2007, Smart issued Php5 billion unsecured fixed rate corporate notes,
comprised of Series A notes amounting to Php3.8 billion and Series B notes
amounting to Php1.2 billion with five and ten year terms, respectively.  Series
A notes were priced at 5.625%, while Series B notes were priced at 6.500%.
Funds raised from the issuance of these notes have been used primarily for
Smart&#146;s capital expenditures for network improvement and expansion.  The amount
of Php5 billion remained outstanding as at December 31, 2007.</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</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">&nbsp;</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:.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 a 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.  This loan was
fully paid on March 31, 2007.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:31.5pt' style="margin-top:0;margin-bottom:0"><i>Unsecured</i><i> Term Loans</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:45.0pt' style="margin-top:0;margin-bottom:0"><i>Php2,500 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 August 14, 2006, Smart signed a
Philippine Peso term loan facility with Metropolitan Bank and Trust Company to
finance the related Phase 9 GSM facility for an amount of Php2,500 million.
The facility is a five-year loan payable in 18 equal consecutive quarterly
installments commencing on the third quarter from the date of the first
drawdown.  Interest rate is floating at three-month MART plus 0.75% per annum
margin.  The facility was drawn on December 11, 2006 for the full amount of
Php2,500 million at a floating interest rate of 6.02% (5.27% three-month MART1
plus 0.75% per annum margin).  The first installment commenced on September 11,
2007 with final repayment on December 9, 2011.  The outstanding balance of this
loan as at December 31, 2007 amounted to Php2,222 million (Php2,214 million,
net of unamortized debt discount of Php8 million).</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:45.0pt' style="margin-top:0;margin-bottom:0"><i>Php400 Million and Php20
Million Refinancing Loans</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 May 22, 2007, PLDT signed loan
agreements with The Philippine American Life and General Insurance Company for
Php400 million and The Philam Bond Fund, Inc. for Php20 million, respectively,
to refinance their respective participations in the Ten-Year Note under the
Php1,270 million Peso Fixed Rate Corporate Notes which were repaid on June 12,
2007.  Interest is payable quarterly.  Both refinancing loans will mature on
June 12, 2014.</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>Debt
Covenants</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">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 IFRS, 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='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 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 expense.  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 88% 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-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) creating any lien or security interest; (i) permitting
set-off against amounts owed to PLDT; (j) merging or consolidating with any
other company; <br>
(k) entering into transactions with stockholders and affiliates; and (l)
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.</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 (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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Smart&#146;s debt
instruments contain certain restrictive covenants 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 consolidated debt to consolidated equity ratio of not more
than 1.5:1.0, a consolidated debt to consolidated EBITDA ratio of not more than
3:1 and a debt service coverage ratio of not less than 1.5:1.0.  As at December
31, 2007, 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; and (c) the occurrence of any material adverse
change in circumstances that the lender reasonably believes materially impairs
Smart&#146;s ability to perform its obligations or impair guarantors&#146; ability to
perform their obligations under its loan agreements.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The Omnibus Agreement
of Mabuhay Satellite imposes several negative covenants which, among other
things, 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-top:0;margin-bottom:0">As at December 31,
2007, we are in compliance with all of our debt 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 Finance 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 finance
leases as at December 31, 2007 are 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;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>(in
 million pesos)</b></p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0">925</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Total minimum lease payments (Note 24)</p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0"> 940</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Less amount representing interest</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0">444</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Present value of net minimum lease payments (Note 3)</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0"> 496</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Less obligations under finance lease maturing within one
 year (Notes 8 and 26)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0">481</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Long-term portion of obligations under finance lease (Notes 8
 and 26)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.5in;text-align:right' style="margin-top:0;margin-bottom:0">  15</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"><i>Municipal
Telephone Projects </i></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">In 1993, PLDT entered into two (2) lease agreements
(the &#147;Financial Lease Agreements, or FLAs&#148;) with the Philippine Department of
Transportation and Communications, or DOTC, covering telecommunications
facilities in the provinces of Bohol and Batangas established under the
Municipal Telephone Act.  Under these FLAs, PLDT was granted the exclusive
right to provide telecommunications management services, to expand
telecommunications services, and to promote the use of the DOTC-contracted
facilities in certain covered areas for a period of 15 years.  Title to the
telecommunications facilities/properties shall be transferred to PLDT upon
expiration of the lease term.  As at December 31, 2007, PLDT&#146;s aggregate
remaining obligation under this agreement was approximately Php393 million.  In
case of cancellation, PLDT is liable to pay Php100 million under each of the
two contracts as liquidated damages.</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">On
June 1, 2004, PLDT served the DOTC a notice of termination of the FLA in
respect of the telecommunications system in Bohol which state of deterioration,
obsolescence and disrepair has 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 Bohol
telecommunications system as PLDT had 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 its originally
projected profitability, thereby rendering it impossible for PLDT to continue
fulfilling its obligations under the FLA.</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Although several discussions
have been held since 2002, no mutually acceptable agreement has been reached
between the parties.  On June 30, 2004, DOTC advised PLDT that the request for
termination of the FLA for Bohol telecommunications system has been referred to
the Department of Justice, or DOJ, as government agencies such as the DOTC 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 DOTC the quarterly installments under the FLA.</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">Due to
the failure of the parties to amicably settle their dispute, the dispute was referred
to arbitration.  On October 11, 2007, the arbitral committee issued a final award
which held that the FLA relating to Bohol was validly terminated effective July
1, 2004.  In spite of the valid pre-termination of the FLA, however, the arbitral
committee decreed that there remained particular payments due from PLDT to
DOTC, particularly on the lease rentals that have accrued as of the date of termination
of the FLA, and the net present value of the facilities.  Moreover, the
arbitral committee decreed that payment by PLDT of the net present value of the
facilities and the transfer fee will result in the transfer of ownership of the
facilities to PLDT.  Hence, under the final award, the arbitral committee awarded
in favor of DOTC a total amount of Php293 million, which amount PLDT has fully
paid on various dates between September 26, 2007 and January 8, 2008.  The
arbitral committee&#146;s final award was confirmed by the Regional Trial Court
(Branch 121) of Mandaluyong City in an Order dated November 20, 2007.</p>

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">As at December 31, 2007, the telecommunications system
in Bohol, including PLDT&#146;s additional capital expenditure relating to the
telecommunications system has been fully depreciated, while the net book value
of corresponding finance lease obligation amounted to Php277 million.</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">Piltel
entered into an agreement for the financial lease of the Palawan
Telecommunications System of the Municipal Telephone Public Office with the
DOTC on September 3, 1994.  The Municipal Telephone Public Office Contract is a
30-year contract for Piltel to lease facilities for public call office stations
in the Palawan area, with revenues going to Piltel.  In consideration, Piltel
pays the DOTC an escalating annual lease fee.  The total lease payment for
thirty years is Php483 million.  As at December 31, 2007, Piltel&#146;s aggregate
remaining obligation under this agreement was approximately Php43 million.</p>

<p style='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>Other
Long-term Finance Lease Obligations</i> </p>

<p style='text-indent:0in;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">The
PLDT Group has various long-term lease contracts for a period of three years
covering various office equipment.  In particular, PLDT, Smart and ePLDT have finance
lease obligations in the aggregate amount of Php504 million as at December 31,
2007 in respect of office equipment.</p>

<p style='text-indent:0in' 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='text-indent:0in' 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='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">The
movements of PLDT&#146;s preferred stock subject to mandatory redemption for 2007
and 2006 are as follows:</p>

<p style='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:463.5pt;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=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: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>2007</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">2006</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>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=7 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-bottom:1.0pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance at beginning of year</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>61</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;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>1,308</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;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>1,369</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;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">272</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;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">6,321</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;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">5,381</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;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">11,974</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accretion</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;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>10</b></p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;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>131</b></p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;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>141</b></p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;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</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;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">481</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;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">282</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;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">776</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Conversion </p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;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>(22)</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(291)</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(313)</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(224)</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;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">(5,253)</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;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">(5,543)</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;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">(11,020)</p>
 </td>
 </tr>
 <tr style='height:.1in'>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:.1in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Revaluation </p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(182)</b></p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(182)</b></p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(241)</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(120)</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:1.45pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(361)</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance at end of year (Notes 24 and 26)</p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 49</b></p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>966</b></p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,015</b></p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 61</p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,308</p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right;
 page-break-after:avoid' 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:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;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">1,369</p>
 </td>
 </tr>
</table></center></div>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">PLDT had issued 3 million shares
of Series V Convertible Preferred Stock, 5 million shares of Series VI
Convertible Preferred Stock and 4 million shares of Series VII Convertible
Preferred Stock in exchange for a total of 58 million shares of Series K Class
I Convertible Preferred Stock of Piltel, pursuant to the debt restructuring
plan of Piltel adopted in June 2001.  As discussed below, as at December 31,
2006, all Series VII Convertible Preferred Stock had been converted.  Shares of
Series V and VI Convertible Preferred Stock are entitled to receive annual
dividends of Php18.70 per share and US$0.397 per share, respectively.  Each
share of Series V and VI Convertible Preferred Stock is convertible at any time
at the option of the holder into one share of PLDT&#146;s common stock.  Shares of Series
V and Series VI Convertible Preferred Stock which are outstanding on June 4,
2008, the seventh anniversary of the issue date thereof, will be mandatorily
converted into shares of PLDT&#146;s common stock on the date immediately following
such anniversary date.  Under a put option exercisable for 30 days following
the mandatory conversion, holders of shares of PLDT&#146;s common stock received on
mandatory conversion of the Series V and VI Convertible Preferred Stock, will
be able to require PLDT to purchase such shares of PLDT&#146;s common stock for Php1,700
per share and US$36.132 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 Convertible
Preferred Stock was designated as a compound instrument consisting of liability
and equity components.  The fair value of the Series V Convertible Preferred
Stock was determined on the issue date, of which the fair value of the
liability component as at date of issuance is recorded as &#147;Preferred Stock
Subject to Mandatory Redemption&#148; and 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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The cost
of each foreign currency component of the Series VI and VII Convertible
Preferred Stock Series VI and VII was designated as a debt instrument with
embedded call options.  The fair value of the Series VI and VII Convertible
Preferred Stock was determined on the issue date, of which the fair value of embedded
call options was bifurcated and accounted for separately.  See <i>Note 2 &#150;
Summary of Significant Accounting Policies and Practices </i>and<i> Note 26 &#150;
Financial Assets and Liabilities</i>.  The residual amount was assigned as a liability
component and recorded as &#147;Preferred Stock Subject to Mandatory Redemption&#148; and
is included under the &#147;Interest-bearing Financial Liabilities&#148; account in the
consolidated balance sheets.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The difference between the amount designated as
liability components 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 years ended December 31, 2007 and 2006 amounted to Php141 million and
Php776 million, respectively.</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">&#147;Preferred Stock Subject to Mandatory Redemption&#148;
amounted to Php1,015 million and Php1,369 million as at December 31, 2007 and
2006, 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
December 31, 2007 and 2006, 11,147,451 shares and 10,937,309 shares,
respectively, of the Series V, VI and VII Convertible Preferred Stock had been
voluntarily converted into PLDT common shares.  <a name="OLE_LINK44">On August
18, 2006, all of the remaining 3,842,000 shares of the Series VII Convertible
Preferred Stock had been voluntarily converted into shares of PLDT&#146;s common </a>stock.
As at December 31, 2007, 30,790 shares of the Series V and 680,303 shares of
the Series VI Convertible Preferred Stock remained outstanding.  On March 4,
2008, PLDT issued a notice to the effect that all of the Series V and VI
Convertible Preferred Stock originally issued on June 4, 2001 and outstanding
as at June 4, 2008 will be mandatorily converted on June 5, 2008 to shares of PLDT&#146;s
common stock.  The aggregate redemption value of the outstanding shares of the Series
V and VI Convertible Preferred Stock amounted to Php1,070 million and Php1,629
million as at December 31, 2007 and 2006, respectively.  See <i>Note 24 &#150;
Contractual Obligations and Commercial Commitments</i>.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The corresponding dividends on these shares charged as
interest expense amounted to Php17 million and Php130 million for the years ended
December 31, 2007 and 2006, respectively.  See <i>Note 5 &#150; Income and Expenses</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"><a
name="OLE_LINK56"></a><a name="OLE_LINK55">Notes
Payable</a></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">In 2006, SPi obtained unsecured dollar-denominated
short-term notes payable from various local commercial banks amounting to
US$4.09 million.  In 2007, additional short-term unsecured dollar-denominated
notes payable were obtained from various banks totaling US$4.8 million.
Interest on the notes range from 6.9% to 7.5% of the outstanding balance per
annum and the notes are payable within 90 to 360 days from the availment date.
The outstanding balance of US$10 million, or Php416 million, as at December 31,
2007 will mature on various dates from January 31, 2008 to December 8, 2008.</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">In 2006, CyMed obtained two-year interest bearing
notes payable amounting to US$3.4 million from its previous shareholders.
Interest on the notes payable is 6.2% per annum.  The outstanding balance of
US$2 million, or Php67 million, as at December 31, 2007 will mature in August
2008.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">On June 1, 2007, SPi
America LLC obtained short-term interest-bearing notes payable amounting to
US$0.5 million, or Php22 million, in payment for software license.  The loan is
payable within one year in four equal quarterly payments of principal and
interest commencing on September 1, 2007.  Interest on the loan is 5% per
annum.  The outstanding balance of US$.02 million, or Php10 million, as at
December 31, 2007 will mature on various dates from March 1, 2008 to June 1,
2008.</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>19. Deferred Credits and 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:96.96%;margin-left:18.3pt;border-collapse:collapse;width:96.96% !msorm;
 border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=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-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 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;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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;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:53.95pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accrual
 of capital expenditures under long-term financing</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>7,554</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">5,646</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Liabilities on asset retirement obligations
 (Notes 3 and 8)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>952</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">831</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Future earn-out
 payments &#150; net (Notes 2 and 11)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>782</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Unearned revenues (Note 21)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>290</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">985</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Prepayments received under a receivables
 purchase facility (Note 14)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">205</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>54</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">836</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;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"><b>9,632</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;
 background:#E0E0E0;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=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,503</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">Accrual of capital expenditures
under long-term financing represent expenditures related to the expansion and
upgrade of our network facilities which are not expected to be settled within
one year and refinanced by long-term debt.</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>20. Accounts Payable</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:96.96%;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 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-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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=right style='margin-top:3.0pt;margin-right:.05in;
 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:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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;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:53.95pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Suppliers
 and contractors (Notes 24 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>8,672</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">5,428</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Carriers
 (Note 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>1,843</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">1,593</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Taxes
 (Note 25)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>1,648</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">1,286</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Related
 parties (Note 22)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>29</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">133</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>61</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">194</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;
 background:#F3F3F3;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;
 background:#F3F3F3;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"><b>12,253</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;
 background:#F3F3F3;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=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,634</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%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style="margin-top:0;margin-bottom:0"><b>21. Accrued Expenses
and Other Current Liabilities</b></p>

<p style='margin-left:.25in' 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' 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:96.94%;margin-left:18.4pt;border-collapse:collapse;width:96.94% !msorm;
 border-collapse:collapse !msorm'>
 <tr style='height:13.9pt' style='height:13.9pt !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;border-top:
 solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;height: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;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:13.9pt'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:13.9pt'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:13.9pt'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">2006</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:53.95pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt' style="margin-top:0;margin-bottom:0">Accrued
 utilities and related expenses (Note 22)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>10,823</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">8,078</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Unearned
 revenues (Note 2)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>4,024</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">4,033</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Accrued
 employee benefits (Note 23)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,837</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">7,474</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Accrued interests and other related costs (Notes 18 and
 22)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,234</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,768</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 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
 (Notes 24 and 25)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>977</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">756</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Current portion of future earn-out
 payments (Notes 2 and 11)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>266</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Payable in installment purchase of
 equity investment (Note 11)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>123</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,645</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,026</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>21,929</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">23,135</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">Unearned revenues represent
advance payments for leased lines, installation fees, monthly service fees and
unused and/or unexpired portion of prepaid loads.</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>22. Related Party Transactions</b></p>

<p style='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"><i>a.   Air Time Purchase Agreement between PLDT and AIL and Related
Agreements</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Under the Founder
NSP Air Time Purchase Agreement, or ATPA, entered into with AIL in March 1997,
which was amended in December 1998 (as amended, the &#147;Original ATPA&#148;), PLDT was
granted the exclusive right to sell AIL services as national service provider,
or NSP, in the Philippines.  In exchange, the Original ATPA required PLDT to
purchase from AIL a minimum of US$5 million worth of air time (the &#147;Minimum Air
Time Purchase Obligation&#148;) annually over ten years commencing on January 1,
2002 (the &#147;Minimum Purchase Period&#148;), the purported date of commercial
operations of the Garuda I Satellite. In the event that AIL&#146;s aggregate billed
revenue was less than US$45 million in any given year, the Original ATPA also
required PLDT to make supplemental air time purchase payments not to exceed
US$15 million per year during the Minimum Purchase Period (the &#147;Supplemental
Air Time Purchase Obligation&#148;).</p>

<p style='margin-left:.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">Under the
Original ATPA, the Minimum Air Time Purchase Obligation and the Supplemental
Air Time Purchase Obligation terminated upon the earlier of (i) the expiration
of the Minimum Purchase Period and <br>
(ii) the date on which all indebtedness incurred by AIL to finance the AIL
System has been repaid.  AIL indebtedness consists of: (1) loans with several
financial institutions (the &#147;Banks&#148;) under the Credit Agreement dated March 12,
1997, as amended from time to time, including the amendment through the
rescheduling agreement, dated September 30, 2002, which extended the principal
repayment dates to agreed periods with final maturity date on January 31, 2012
(collectively, the &#147;Amended Credit Agreement&#148;); and (2) amounts owing to MMOC
under the Spacecraft Contract dated August 28, 1995, as amended on December 30,
1998.</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">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 NSPs
inability to generate the amount of revenues originally expected as the growth
in subscriber numbers has been significantly lower than budgeted.</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">On September 1, 2006, AIL, PT Asia
Cellular Satellite, a 95%-owned subsidiary of AIL, and Inmarsat Global Limited,
or Inmarsat, reached an agreement to pool their resources to develop powerful
and novel product and service offerings in the Asian region, founded on their
respective mobile satellite communications networks, with (a) Inmarsat
performing the role of satellite and network operator and wholesale product and
services developer and (b) AIL performing the role of wholesale and retail
distributor of products and services.  </p>

<p style='margin-left:.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">Inmarsat
operates a constellation of geostationary satellites that extend mobile phone,
fax and data communications to nearly every part of the world through the
services it offers to end users through its established chain of distribution
partners and satellite communications service providers.</p>

<p style='margin-left:.5in;line-height:8.0pt;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">On September
1, 2006, PLDT entered into a gateway services agreement with Inmarsat, under
which PLDT committed to provide gateway infrastructure in Subic Bay up to a
maximum amount of US$5 million.  In exchange, PLDT will earn US$0.015 per
minute for interconnection services to be provided to Inmarsat distribution
partners for traffic going through the gateway facility in Subic Bay.</p>

<p style='margin-left:.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">On September
1, 2006, AIL and PT Asia Cellular Satellite entered into a term sheet, as
amended on October 20, 2006 and further amended on November 20, 2006 (the &#147;Banks
Terms Sheet&#148;), with a majority of the banks, as the basis for negotiations
between the parties thereto with a view to enter into an agreement to further
amend the Amended Credit Agreement with AIL&#146;s bank creditors.  Under the Banks
Terms Sheet, a majority of the banks agreed, subject to satisfaction of certain
conditions, among other things, to amend the Original ATPA as set forth in an
attachment to the Banks Terms Sheet and to restructure AIL&#146;s indebtedness.
Pursuant to the business collaboration arrangements between AIL and Inmarsat,
on September 1, 2006, Inmarsat made the first payment of US$4 million to AIL
which was used to pay principal and interest payable to the banks in accordance
with the Banks Terms Sheet.</p>

<p style='margin-left:.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">On February
1, 2007, the parties to the Original ATPA entered into an amendment to the
Original ATPA on substantially the terms attached to the Banks Terms Sheet (the
&#147;Amended ATPA&#148;).  Under the Amended ATPA, the Minimum Air Time Purchase
Obligation was amended and replaced in its entirety with an obligation of PLDT
(the &#147;Amended Minimum Air Time Purchase Obligation&#148;) to purchase from AIL a
minimum of US$500,000 worth of air time annually over a period ending upon the
earlier of (i) the expiration of the Minimum Purchase Period and (ii) the date
on which all indebtedness incurred by AIL to finance the AIL System is repaid.
Furthermore, the Amended ATPA unconditionally released PLDT from any
obligations arising out of or in connection with the Original ATPA prior to the
date of the Amended ATPA, except for obligations to pay for billable units used
prior to such date.  Moreover, pursuant to a letter of confirmation, dated
February 1, 2007, the banks released and discharged PLDT and ACeS Philippines
and their respective subsidiaries from any and all obligations and liabilities
under the Original ATPA and related agreements. </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">Moreover, in accordance with the
above contractual arrangements, ACeS Philippines acquired (i) from LMGT
Holdings (ACeS), Inc., or LMGT, 50% of its equity interest in AIL for a
consideration of US$0.75 million pursuant to a sale and purchase agreement
entered into on February 1, 2007 and (ii) from Tera Global Investment Ltd., or
TGIL, for a nominal consideration, 50% of TGIL&#146;s interest in a promissory note
issued by AIL, which 50% interest represents an aggregate amount of US$44
million, or the Transferred AIL Note, together with related security interests
pursuant to a sale agreement entered into on February 1, 2007.  Immediately
thereafter, a portion of the Transferred AIL Note was converted into shares of
AIL and the balance was converted into non-interest bearing convertible bonds
of AIL.  As a result of these transactions, ACeS Philippines equity holdings in
AIL increased from 20% in 2006 to 36.99% as at the date of this report.</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">Total fees
under the Amended ATPA amounted to Php160 million and Php199 million for the
years ended December 31, 2007 and 2006, respectively.  The Amended ATPA did no
longer qualify as an onerous contract under the provision of <i>IAS 10, &#147;Events
After the Balance Sheet Date&#148;</i>, since the cost of meeting the obligations
under the Amended ATPA is below or within the estimated benefits that PLDT is
expected to receive by it.  Net provisions for onerous contact amounting to
US$72 million, or Php3,529 million, were reversed on December 31, 2006,
excluding the amount paid or to be paid in relation to the Amended ATPA.  As a
result, as at December 31, 2007 and 2006, outstanding obligations of PLDT under
the Amended ATPA amounted to Php93 million and Php24 million, respectively.</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:-.25in' style="margin-top:0;margin-bottom:0"><i>b.   Transactions
with Major Stockholders, Directors and Officers </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">Material transactions to which PLDT
or any of its subsidiaries is a party, in which a director, key officer or
owner of more than 10% of the outstanding common stock of PLDT, or any member
of the immediate family of a director, key officer or owner of more than 10% of
the outstanding common stock of PLDT had a direct or indirect material
interest, as at and for the years ended December 31, 2007 and 2006 are as
follows:</p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0"><i>1.   Cooperation Agreement with First Pacific and certain affiliates,
or the FP Parties, NTT Communications and NTT DoCoMo</i></p>

<p style='margin-left:.5in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-top:0in;margin-right:0in;
margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;text-indent:0in;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">In connection with the transfer by NTT Communications
of approximately 12.6 million shares of PLDT&#146;s common stock to NTT DoCoMo
pursuant to a Stock Sale and Purchase Agreement dated January 31, 2006 between
NTT Communications and NTT DoCoMo, the FP Parties, NTT Communications and NTT DoCoMo
entered into a Cooperation Agreement, dated January 31, 2006.  Under the
Cooperation Agreement, the relevant parties extended certain rights of NTT
Communications under the Stock Purchase and Strategic Investment Agreement
dated September 28, 1999, as amended, and the Shareholders Agreement dated
March 24, 2000, to NTT DoCoMo, including:</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:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
certain contractual veto rights over a number of major decisions
or transactions; and</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:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
rights relating to the representation on the board of directors
of PLDT and Smart, respectively, and any committees thereof.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-bottom:0in;margin-bottom:.0001pt;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Moreover, key provisions of the Cooperation Agreement
pertain to, among other things:</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Restriction on Ownership of Shares of PLDT by NTT
Communications and NTT DoCoMo. </i> Each of NTT Communications and NTT DoCoMo
has agreed not to beneficially own, directly or indirectly, in the aggregate
with their respective subsidiaries and affiliates, more than 21% of then issued
and outstanding shares of PLDT&#146;s common stock.  If such event does occur, the
FP Parties, as long as they own in the aggregate not less than 21% of then
issued and outstanding shares of PLDT&#146;s common stock, have the right to
terminate their respective rights and obligations under the Cooperation
Agreement, the Shareholders Agreement and the Stock Purchase and Strategic
Investment Agreement.</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Limitation on Competition.</i>  NTT Communications, NTT DoCoMo
and their respective subsidiaries are prohibited from investing in excess of
certain thresholds in businesses competing with PLDT in respect of customers
principally located in the Philippines and from using their assets in the Philippines in such businesses. Moreover, if PLDT, Smart or any of Smart&#146;s subsidiaries
intends to enter into any contractual arrangement relating to certain competing
businesses, PLDT is required to provide, or to use reasonable efforts to
procure that Smart or any of Smart&#146;s subsidiaries provide, NTT Communications
and NTT DoCoMo with the same opportunity to enter into such agreement with PLDT
or Smart or Smart&#146;s subsidiaries, as the case may be.</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Business Cooperation.</i>  PLDT and NTT DoCoMo agreed in principle
to collaborate with each other on the business development, roll-out and use of
a wireless-code division multiple access mobile communication network.  In
addition, PLDT agreed, to the extent of the power conferred by its direct or
indirect shareholding in Smart, to procure that Smart will (i) become a member
of a strategic alliance group for international roaming and corporate sales and
services and (ii) enter into a business relationship concerning preferred
roaming and inter-operator tariff discounts with NTT DoCoMo.</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:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Additional Rights of NTT DoCoMo.  </i>Pursuant to amendments
effected by the Cooperation Agreement to the Strategic Agreement and the
Shareholders Agreement, upon NTT Communications and NTT DoCoMo and their
respective subsidiaries owning in the aggregate 20% or more of PLDT&#146;s shares of
common stock and for as long as they continue to own in the aggregate at least
17.5% of PLDT&#146;s shares of common stock then outstanding, NTT DoCoMo has
additional rights under the Strategic Agreement and Shareholders Agreement,
including that:</p>

<p style='margin-left:.75in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:85.5pt;text-indent:-13.5pt;
punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">1.&nbsp;&nbsp;&nbsp;&nbsp;
NTT DoCoMo is entitled to nominate
one additional NTT DoCoMo nominee to the board of directors of each PLDT and
Smart;</p>

<p style='margin-left:1.0in;text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:85.5pt;text-indent:-13.5pt;
punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">2.&nbsp;&nbsp;&nbsp;&nbsp;
PLDT must consult NTT DoCoMo no
later than 30 days prior to the first submission to the board of PLDT or
certain of its committees of any proposal of investment in an entity that would
primarily engage in a business that would be in direct competition or
substantially the same business opportunities, customer base, products or
services with business carried on by NTT DoCoMo, or which NTT DoCoMo has
announced publicly an intention to carry on;</p>

<p style='margin-left:1.0in;text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:85.5pt;text-indent:-13.5pt;
punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">3.&nbsp;&nbsp;&nbsp;&nbsp;
PLDT must procure that Smart does
not cease to carry on its business, dispose of all of its assets, issue common
shares, merge or consolidate, or effect winding up or liquidation without PLDT
first consulting with NTT DoCoMo no later than 30 days prior to the first
submission to the board of PLDT or Smart, or certain of its committees; and </p>

<p style='margin-left:.75in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:85.5pt;text-indent:-13.5pt;
punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">4.&nbsp;&nbsp;&nbsp;&nbsp;
PLDT must first consult with NTT
DoCoMo no later than 30 days prior to the first submission to the board of PLDT
or certain of its committees for the approval of any transfer by any member of
the PLDT Group of Smart common capital stock to any person who is not a member
of the PLDT Group.  </p>

<p style='margin-left:.75in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in' style="margin-top:0;margin-bottom:0">As at February 29, 2008, NTT
Communications and NTT DoCoMo together beneficially owned 20.86% of the
outstanding shares of PLDT&#146;s common stock.</p>

<p style='margin-left:.75in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Change in Control.</i>  Each of NTT Communications, NTT DoCoMo
and the FP Parties agreed that to the extent permissible under applicable laws
and regulations of the Philippines and other jurisdictions, subject to certain
conditions, to cast its vote as a shareholder in support of any resolution
proposed by the board of directors of PLDT for the purpose of safeguarding PLDT
from any Hostile Transferee.  A <i>&#147;Hostile Transferee&#148;</i> is defined under
the Cooperation Agreement to mean any person (other than NTT Communications, NTT
DoCoMo, First Pacific or any of their respective affiliates) determined to be
so by the board of directors of PLDT and includes, without limitation, a person
who announces an intention to acquire, seeking to acquire or acquires 30% or
more of PLDT common shares then issued and outstanding from time-to-time or
having (by itself or together with itself) acquired 30% or more of the PLDT
common shares announces an intention to acquire, seeking to acquire or acquires
a further 2% of such PLDT common shares: (a) at a price per share which is less
than the fair market value as determined by the board of directors of PLDT as
advised by a professional financial advisor; (b) which is subject to conditions
which are subjective or which could not reasonably be satisfied; (c) without
making an offer for all PLDT common shares not held by it and/or its affiliates
and/or persons who, pursuant to an agreement or understanding (whether formal
or informal), actively cooperate to obtain or consolidate control over PLDT;
(d) whose offer for the PLDT common shares is unlikely to succeed or (e) whose
intention is otherwise not <i>bona fide</i>; provided that, no person will be
deemed a Hostile Transferee unless prior to making such determination, the board
of directors of PLDT has used reasonable efforts to discuss with NTT
Communications and NTT DoCoMo in good faith whether such person should be
considered a Hostile Transferee.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;punctuation-wrap:
hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Termination.</i>  If NTT Communications, NTT DoCoMo or their
respective subsidiaries cease to own, in the aggregate, full legal and
beneficial title to at least 10% of the shares of PLDT&#146;s common stock then
issued and outstanding, their respective rights and obligations under the
Cooperation Agreement and the Shareholders Agreement will terminate and the
Strategic Arrangements (as defined in the Stock Purchase and Strategic
Investment Agreement) will terminate.  If the FP Parties and their respective
subsidiaries cease to have, directly or indirectly, effective voting power in
respect of shares of PLDT&#146;s common stock representing at least 18.5% of the
shares of PLDT&#146;s common stock then issued and outstanding, their respective
rights and obligations under the Cooperation Agreement, the Stock Purchase and
Strategic Investment Agreement, and the Shareholders Agreement will terminate.</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>2.   Integrated i-mode Services Package Agreement between NTT DoCoMo
and Smart</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">An Integrated i-mode Services
Package Agreement was entered into by Smart and NTT DoCoMo on February 15,
2006, under which NTT DoCoMo agreed to grant Smart, on an exclusive basis
within the territory of the Philippines for a period of five years, an
integrated i-mode services package including a non-transferable license to use
the licensed materials and the i-mode brand, as well as implementation support
and assistance and post-commercial launch support from NTT DoCoMo. Pursuant to
this agreement, Smart is required to pay an initial license fee and running
royalty fees based on the revenue arising from i-mode subscription fees and
data traffic.  Smart has no outstanding obligation under this agreement as at
December 31, 2007.  Outstanding obligation under this agreement amounted to
Php53 million as at December 31, 2006.  Total royalty fees charged to
operations under this agreement amounted to Php88 million and Php53 million as
at December 31, 2007 and 2006, respectively. </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><a name="OLE_LINK71"></a><a
name="OLE_LINK70"><i>3.   Advisory Services Agreement between NTT DoCoMo and
PLDT</i></a></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">An Advisory Services Agreement was
entered into by NTT DoCoMo and PLDT on June 5, 2006, in accordance with the
Cooperation Agreement dated January 31, 2006.  Pursuant to the Advisory
Services Agreement, NTT DoCoMo will provide the services of certain key
personnel in connection with certain aspects of the business of PLDT and
Smart.  Also, said agreement governs the terms and conditions of the
appointments of such key personnel and the corresponding fees related thereto.
Total fees under this agreement amounted to Php73 million and Php44 million for
the years ended December 31, 2007 and 2006, respectively.  Outstanding
liability under this agreement amounted to Php12 million and Php32 million as
at December 31, 2007 and 2006, respectively.</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"><i>4.   Other
Agreements with NTT Communications and/or its Affiliates</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT is a party to the following agreements with NTT
Communications and/or its affiliates:</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>Advisory Services Agreement</i>.   On March 24, 2000, PLDT
entered into an agreement with NTT Communications, as amended on March 31,
2003, March 31, 2005 and June 16, 2006, under which NTT Communications provides
PLDT with technical, marketing and other consulting services for various
business areas of PLDT starting April 1, 2000;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.75in;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<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:54.7pt;text-indent:-.25in;page-break-after:
avoid;punctuation-wrap:hanging;text-autospace:ideograph-numeric ideograph-other' style="margin-top:0;margin-bottom:0">&bull;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<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 Php177 million and Php184 million for the
years ended December 31, 2007 and 2006, respectively.  As at December 31, 2007
and 2006, outstanding obligations of PLDT under these agreements amounted to
Php28 million and Php18 million, respectively.</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>5.   Agreements
between Smart and Asia Link B.V., or ALBV.  </i>Smart has an existing Technical
Assistance Agreement with ALBV, a subsidiary of the First Pacific Group.  ALBV
provides technical support services and assistance in the operations and
maintenance of Smart&#146;s cellular business.  The agreement, which is effective until
February 23, 2008 and is subject to renewal upon mutual agreement of the
parties, provides for payment of technical service fees equivalent to 1% of the
consolidated net revenues of Smart.  Total service fees charged to operations
under this agreement amounted to Php656 million and Php591 million for the
years ended December 31, 2007 and 2006, respectively.  As at December 31, 2007,
Smart had advanced the payment of service fees to ALBV amounting to Php87
million.  Smart&#146;s outstanding liability to ALBV amounted to Php128 million as
at December 31, 2006.</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"><i>6.   Agreements Relating to Insurance Companies.</i>  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 under these agreements amounted to
Php339 million and Php360 million for the years ended December 31, 2007 and
2006, respectively.  Two directors of PLDT have direct/indirect interests in or
serve as a director/officer of Gotuaco and Malayan, 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_LINK58"></a><a name="OLE_LINK57"><b><i>Compensation of Key Management
Personnel of the PLDT Group</i></b></a></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">PLDT Group&#146;s compensation of key management personnel
by benefit type follows:</p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:96.94%;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:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2007</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-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">2006</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;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:10.25pt'>
 <p align=center style='margin-left:54.05pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Short-term employee benefits</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>781</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">698</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Share-based payments (Note 23)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>299</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">978</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Post-employment benefits (Note 23)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>58</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">30</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:.4pt;text-indent:-.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,138</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;
 background:#F3F3F3;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">1,706</p>
 </td>
 </tr>
</table></center></div>

<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">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.  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-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">There are no agreements between PLDT Group and any of its key
management personnel providing for benefits upon termination of employment,
except for such benefits to which they may be entitled under PLDT Group&#146;s
retirement and incentive plans.</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>23. Share-based
Payments and Employee Benefits</b></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>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 shares of common stock of PLDT had been reserved as
underlying option shares under the ESOP in 1999.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Movements in the number of stock options outstanding
under the ESOP are as follows:</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:6.5in;margin-left:.25in;border-collapse:collapse'>
 <tr style='height:2.5pt'>
 <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:2.5pt'>
 <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;height:2.5pt'>
 <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>2007</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;height:2.5pt'>
 <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;height:2.5pt'>
 <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">2006</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance at beginning of year</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;
 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"><b>119,034</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;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=' background:#E0E0E0;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">197,500</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Exercised shares*</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(92,276)</b></p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;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=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(78,466)</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Balance at end of year</p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;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"><b>26,758</b></p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;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;
 background:#E0E0E0;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">119,034</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"><i>*    </i><i>Based
on the date of payment of exercised shares.</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>&nbsp;</i></b></p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Under ESOP, option grants were made for a total of
1,541,360 shares of PLDT&#146;s common stock, all of which were made to executives
of PLDT and 206,942 of which were made to &#147;key officers&#148;.  All outstanding
stock options became fully vested in December 2004.  As at December 31, 2007, a
total of 843,092 shares were acquired by certain officers and executives who
exercised their options, at an exercise price of Php814 per share and 671,510
share option grants were cancelled due to resignation of PLDT executives.</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 fair value of the ESOP was
estimated at the date of grant using an option pricing model, which considered
annual stock volatility, risk-free interest rate, expected life of the option,
exercise price of Php814 per share, and a weighted average price of Php870 and
Php315 per share for the 1999 and 2002 grants, respectively, as at valuation
date.  Total fair value of shares granted amounted to Php359 million as at
December 31, 2007.  No fair value of share options were recognized as an
expense for the years ended December 31, 2007 and 2006.</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:.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;
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 a Long-term Incentive
Plan, or Original LTIP, for eligible key executive officers and advisors of
PLDT and its subsidiaries, which is administered by the Executive Compensation
Committee.  The Original LTIP was a four-year cash-settled share based plan
covering the period from January 1, 2004 to December 31, 2007, or the
Performance Cycle.  The payment was intended to be made at the end of the
Performance Cycle (without interim payments) and contingent upon the achievement
of an approved target increase in PLDT&#146;s common share price by the end of the
Performance Cycle and a cumulative consolidated net income target for the
Performance Cycle.</p>

<p style='margin-left:.25in' 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 28, 2006, PLDT&#146;s
board of directors approved, in principle, the broad outline of the PLDT
Group&#146;s strategic plans for 2007 to 2009 focusing on the development of new
revenue streams to drive future growth while protecting the existing core
communications business.  To ensure the proper execution of the three-year
plan, particularly with respect to the manpower resources being committed to
such plans, a new LTIP, or New LTIP, upon endorsement of the Executive
Compensation Committee, was approved by the board
of directors to cover the period from
January 1, 2007 to December 31, 2009, or New Performance Cycle.  As a result of
the establishment of the New LTIP, the Board also approved the early vesting of
the Original LTIP by the end of 2006 for those of its participants who were
invited and chose to join the New LTIP.  The early vesting of the Original LTIP
in 2006 resulted in additional LTIP costs of Php1,339 million in 2006.  Participants
in the Original LTIP who were not invited to join the New LTIP, or who were
invited but chose not to join, remained subject to the Original LTIP and its
original vesting schedule.</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;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">The total number of SARs
outstanding under the Original LTIP as at December 31, 2007 was 17,445 which is
expected to be paid in May 2008.  The total number of SARs awarded under the New
LTIP as at December 31, 2007 was 4,319,585, which will be paid in 2010.</p>

<p style='margin-left:.25in;text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">The
fair value of the Original LTIP was estimated using an option pricing model,
which considered annual stock volatility, risk-free interest rates, dividends
yield, the remaining life of options and the share price capped at Php2,300 as
at December 31, 2006 for the Original LTIP and share price of Php3,175 as at
December 31, 2007 for the New LTIP.  Incentive cost per share as at December
31, 2007 for the existing Original LTIP and for the New LTIP amounted to Php1,500
and Php1,039, respectively, while incentive cost per share as at December 31,
2006 for the existing Original LTIP amounted to Php1,350.  The fair value of
the LTIP recognized as an expense for the years ended December 31, 2007 and
2006 amounted to Php1,448 million and Php3,150 million, respectively.  As at
December 31, 2007 and 2006, outstanding LTIP liability amounted to Php1,494
million and Php5,030 million, respectively.  See <i>Note 3 &#150; Management&#146;s Use
of Judgments, Estimates and Assumptions, </i>and<i> Note 5 &#150; Income and
Expenses</i>.</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"><b><i>Pension</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"><i>Defined Benefit Pension Plans</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">We have defined benefit pension
plans, covering substantially our permanent and regular employees, excluding
those of Smart and its subsidiary, I-Contacts, which require contributions to
be made to separate administrative funds.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p 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 liabilities, net pension cost and average
assumptions used in developing the valuation are 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:96.94%;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' 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>2007</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">2006</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=2 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;height:10.25pt'>
 <p align=center style='margin-left:54.05pt;text-align:center' style="margin-top:0;margin-bottom:0">(in
 million pesos)</p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Change in
 benefit obligation:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Benefit
 obligation at beginning of year</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>13,314</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">7,652</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Current
 service cost</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>777</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">479</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Interest cost</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>996</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">895</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Curtailment</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>427</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Benefits paid
 from assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(566)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(594)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Actuarial
 losses (gains) on obligation</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(4,788)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">4,826</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Liabilities of
 newly acquired subsidiaries</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">56</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Benefit obligation
 at end of year</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>10,160</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">13,314</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">&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' 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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Change in
 plan assets:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Fair value of
 plan assets at beginning of year</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>5,768</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">5,154</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Actuarial gain
 on plan assets</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,157</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">343</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Actual
 contribution</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,515</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">320</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Expected
 return on plan assets</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>644</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">541</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Actual
 benefits paid</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(565)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(590)</p>
 </td>
 </tr>
 <tr style='height:4.45pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:4.45pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Fair value of
 plan assets at end of year</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:4.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>8,519</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:4.45pt'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">5,768</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Unfunded
 status</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,641</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">7,546</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Unrecognized
 net actuarial gain (loss) (Note 3)</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,344</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(4,657)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Unrealized
 net transition obligation</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(1)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Accrued
 benefit cost (Note 3)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,985</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">2,888</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">&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' 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:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Components of
 net periodic benefit cost:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Interest cost</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>996</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">895</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Current
 service cost</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>777</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">479</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Curtailment
 loss</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>416</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Net actuarial
 loss recognized for the year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>89</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-.4pt' style="margin-top:0;margin-bottom:0">Expected
 return on plan assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(644)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(541)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">Amortizations
 of unrecognized net transition obligation</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">58</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' 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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,635</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"> 891</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">Actual return on plan assets amounted to Php1,801
million and Php884 million for the years ended December 31, 2007 and 2006,
respectively.</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">The weighted average assumptions
used to determine pension benefits as at December 31, 2007 and 2006 are as
follows:</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:6.5in;margin-left:.25in;border-collapse:collapse'>
 <tr style='height:2.5pt'>
 <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:2.5pt'>
 <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;height:2.5pt'>
 <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>2007</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:2.5pt'>
 <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">2006</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Average remaining working
 years of covered employee</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;
 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"><b>21</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;
 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">22</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Expected rate of return on
 plan assets</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 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"><b>10%</b></p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10%</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Discount rate</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;
 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"><b>8%</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8%</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Rate of increase in compensation</p>
 </td>
 <td  valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 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;background:#F3F3F3;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">9%</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">We have adopted mortality rates in accordance with the
1983 Group Annuity Mortality Table developed by the U.S. Society of Actuaries
Committee, which provides separate rates for males and females.</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">As at
December 31, 2007 and 2006, the assets of the beneficial trust fund established
for PLDT&#146;s pension plan include investments in shares of stocks of PLDT and
Piltel with total fair values aggregating Php2,651 million and Php2,185
million, respectively, which represent about 31% and 35%, respectively, of such
beneficial trust fund&#146;s net assets available for plan benefits.</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">The Board
of Trustees of the beneficial trust fund uses an investment approach of mixed
equity and fixed income investments to maximize the long-term expected return
of plan assets.  The investment portfolio has been structured to achieve the
objective of regular income with capital growth and out-performance of
benchmarks.  A majority of the investment portfolio consists of fixed income
debt securities and various equity securities, while the remaining portion
consists of multi-currency investments.</p>

<p style='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">The
allocation of the fair value of the beneficial trust fund&#146;s assets for the PLDT
pension plan as at December 31, 2007 and 2006 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:96.94%;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;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:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:3.0pt;margin-right:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Investments
 in equity securities</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>60%</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.4pt;margin-bottom:.0001pt;text-align:right;
 text-indent:-9.4pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">52%</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investments in debt and fixed income securities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>21%</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">23%</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investments in real estate</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>8%</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10%</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investments in mutual funds</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>6%<a name="OLE_LINK53"></a><a name="OLE_LINK50"></a></b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8%</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investments in temporary placements</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>5%</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">7%</p>
 </td>
 </tr>
 <tr style='height:3.5pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:3.5pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a name="OLE_LINK83"></a><a name="OLE_LINK82"></a><b>100%</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">100%</p>
 </td>
 </tr>
</table></center></div>

<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">Based on
the latest actuarial valuation report, the recommended cash contributions of
PLDT to its pension plan in 2008 amounted to approximately Php311 million.</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"><a
name="OLE_LINK62"></a><a name="OLE_LINK61"><i>Defined Contribution Plan</i></a></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">Smart and
I-Contacts contributions to the plan are made based on the employee&#146;s years of
tenure and range from 5% to 10% of the employee&#146;s monthly salary.
Additionally, an employee has an option to make a personal contribution to the
fund, at an amount not exceeding 10% of his monthly salary.  The employer then
provides an additional contribution to the fund ranging from 10% to 50% of the
employee&#146;s contribution based on the latter&#146;s years of tenure.  Although the plan
has a defined contribution format, Smart and I-Contacts regularly monitor
compliance with R.A. 7641, otherwise known as &#147;The Retirement Pay Law&#148;.  As at December
31, 2007 and 2006, Smart and <br>
I-Contacts were in compliance with the requirements of R.A. 7641.</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The plan&#146;s investment portfolio
seeks to achieve regular income and long-term capital growth and consistent
performance over its own portfolio benchmark.  In order to attain this
objective, the trustee&#146;s mandate is to invest in a diversified portfolio of
bonds and equities, both domestic and international.  The portfolio mix is kept
at 60% to 90% for fixed income securities while 10% to 40% is allotted to
equity securities.</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">The allocation of the fair value
of plan assets for Smart as at December 31, 2007 and 2006 follows:</p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0  style='width:6.5in;margin-left:.25in;border-collapse:collapse'>
 <tr style='height:2.5pt'>
 <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:2.5pt'>
 <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;height:2.5pt'>
 <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>2007</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:2.5pt'>
 <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">2006</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Investments in debt and fixed income securities</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>57%</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">68%</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Investments in equity securities</p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>35%</b></p>
 </td>
 <td  valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">29%</p>
 </td>
 </tr>
 <tr>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>8%</b></p>
 </td>
 <td  valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3%</p>
 </td>
 </tr>
 <tr style='height:3.5pt'>
 <td  valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:3.5pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td  valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>100%</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;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">100%</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">Total cash
contribution to pension plan for the year ended December 31, 2007 and 2006
amounted to Php143 million and Php114 million, respectively, of which Php5
million and Php3 million, respectively, are contributions to defined
contribution plans for key management personnel.</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 I-Contacts currently
expects to make approximately Php143 million of cash contributions to its
pension plan in 2008.</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"><i>Pension
Benefit Cost</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:.5in;text-indent:-.25in;page-break-after:
avoid' style="margin-top:0;margin-bottom:0">Total pension benefit cost 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:96.94%;margin-left:18.4pt;border-collapse:collapse'>

 <tr style='page-break-inside:avoid;height:13.35pt'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.5pt;
 padding:0in 0in 0in 0in;height:13.35pt'>
 <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;height:13.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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:13.35pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid;height:6.2pt'>
 <td   valign=top style=' border:none;border-top:solid windowtext 1.0pt;
 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=2 valign=top style=' border:none;
 padding:0in 0in 0in 0in;height:6.2pt'>
 <p align=center style='margin-left:54.05pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Expense recognized for defined benefit plans</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>1,635</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">891</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Expense recognized for defined contribution plans</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>138</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">112</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total (Notes 3 and 5)</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,003</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<br clear=all
style='page-break-before:always'>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0"><a
name="OLE_LINK104"></a><a name="OLE_LINK103">&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>24. Contractual
Obligations and Commercial Commitments</b></p>

<p style='margin-left:.5in;text-indent:-.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b><i>Contractual Obligations</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 discloses our
consolidated contractual undiscounted obligations outstanding as at December
31, 2007 and 2006:</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;width:96.2% !msorm;
 border-collapse:collapse !msorm'>

 <tr style='height:10.25pt' style='height:10.25pt !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:10.25pt'>
 <p style='margin-top:3.0pt' 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;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:10.25pt'>
 <p align=center style='margin-top:3.0pt;text-align:center' 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="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' 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='text-align:center' style="margin-top:0;margin-bottom:0"><b>Less than <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='text-align:center' style="margin-top:0;margin-bottom:0"><b>1</b><b>-</b><b>3 years</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:6.4pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>3</b><b>-</b><b>5 Years</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>More than<br>
 5 years</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=5 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>

 <tr style='height:8.1pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style="margin-top:0;margin-bottom:0"><b>December 31, 2007</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><i>Long-term
 debt(1):</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>86,334</i></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>11,441</i></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>22,662</i></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>21,218</i></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>31,013</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-align:justify' style="margin-top:0;margin-bottom:0">Principal</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">64,619</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,872</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">15,883</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">16,267</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">25,597</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-align:justify' style="margin-top:0;margin-bottom:0">Interest</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">21,715</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,569</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,779</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,951</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,416</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><i>Lease
 obligations: </i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>6,554</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>2,992</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>1,515</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>1,040</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>1,007</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-align:justify' style="margin-top:0;margin-bottom:0">Operating lease </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,614</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,067</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,500</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,040</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,007</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-align:justify' style="margin-top:0;margin-bottom:0">Finance lease </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 940</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">925</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><i>Unconditional
 purchase obligations(2)</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i> 776</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>113</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>41</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>249</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>373</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><i>Other
 obligations:</i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>49,488</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>28,023</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>10,835</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>4,294</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>6,336</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Mandatory
 conversion and purchase of shares</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,070</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,070</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Derivative
 financial liabilities(3):</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">11,638</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">   8</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,938</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,240</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,452</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Long-term
 currency swaps </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">11,170</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,527</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,191</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,452</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Long-term
 foreign currency options </p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 318</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">318</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Interest
 rate swap</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 142</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">93</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">49</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Forward
 foreign exchange contracts</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">   8</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Various
 trade and other obligations:</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">36,780</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">26,945</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7,897</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">  54</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,884</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Suppliers
 and contractors</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">16,371</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">8,816</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">7,555</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Utilities
 and related expenses</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,532</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,453</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">75</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Employee
 benefits </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,778</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,778</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Customers&#146;
 deposits </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,201</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">267</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">50</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,884</p>
 </td>
 </tr>
 <tr style='height:.1in'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Carriers
 </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,187</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,187</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Dividends</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,071</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,071</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,640</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,640</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><b>Total
 contractual obligations</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>143,152</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>42,569</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>35,053</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>26,801</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>38,729</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='height:8.1pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style="margin-top:0;margin-bottom:0"><b>December 31, 2006</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><i>Long-term
 debt(1):</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>117,375</i></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>22,343</i></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>32,550</i></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>13,068</i></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>49,414</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-align:justify' style="margin-top:0;margin-bottom:0">Principal</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">85,906</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">16,323</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">22,749</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,120</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">40,714</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-align:justify' style="margin-top:0;margin-bottom:0">Interest</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">31,469</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,020</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">9,801</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,948</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">8,700</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><i>Lease
 obligations: </i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>6,866</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>3,311</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>1,530</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>1,016</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>1,009</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-align:justify' style="margin-top:0;margin-bottom:0">Operating lease</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,296</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,837</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,435</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,015</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,009</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt;text-align:justify' style="margin-top:0;margin-bottom:0">Finance lease </p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,570</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,474</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">95</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><i>Unconditional
 purchase obligations(2)</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i> 834</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>25</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>49</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>172</i></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>588</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><i>Other
 obligations:</i></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>42,564</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>22,166</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>12,222</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>2,362</i></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><i>5,814</i></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Mandatory
 conversion and purchase of shares (Notes 18 and 26)</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,629</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,629</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Derivative
 financial liabilities(3):</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">10,718</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,381</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,284</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,053</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Long-term
 currency swaps</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">9,296</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">3,134</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,144</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">4,018</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Long-term
 foreign currency options</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 943</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">943</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Interest
 rate swaps </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 377</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">202</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">140</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">35</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Forward
 foreign exchange contracts </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 102</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">102</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Various
 trade and other obligations:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">30,217</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">22,166</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">6,212</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">  78</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,761</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Suppliers
 and contractors</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">11,455</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,809</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">5,646</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Utilities
 and related expenses </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">9,696</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">9,495</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">200</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:5.85pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Employee
 benefits </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,416</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,416</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in;
 height:5.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Customers&#146;
 deposit </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,205</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">366</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">77</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,761</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Carriers
 </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,407</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2,407</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Dividends
 </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"> 774</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">774</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,264</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">1,264</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' style="margin-top:0;margin-bottom:0"><b>Total
 contractual obligations</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>167,639</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>47,845</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>46,351</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>16,618</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>56,825</b></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>   Before deducting
unamortized debt discount and debt issuance costs.</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>(2)</i><i>   Based on the Amended
ATPA with AIL.</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>(3)</i><i>   Gross
liabilities before any offsetting application.</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"><i>Long-term Debt</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">For a detailed discussion of our
long-term debt.  See <i>Note 18 </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:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Operating
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"><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 10 to 25 years expiring at various dates.
As at December 31, 2007 and 2006, PLDT&#146;s aggregate remaining obligation under
these contracts amounted to approximately Php3 million and Php6 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>License
Agreement with Mobius Management Systems (Australia) 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, PLDT may
purchase maintenance services for a fee of 15% of the current published license
fee.  As at December 31, 2007 and 2006, PLDT&#146;s aggregate remaining obligation
under this agreement was approximately Php15 million and Php10 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
Operating Lease Obligations</i>.   The PLDT Group has various lease contracts
for periods ranging from one to ten years covering certain offices, warehouses,
cell sites telecommunication equipment locations and various office equipment
amounting to Php5,596 million and Php5,280 million as at December 31, 2007 and
2006, 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>Finance 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">For the detailed discussion of our
long-term finance lease obligations.  See <i>Note 18 &#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;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Unconditional
Purchase 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
detailed discussion of PLDT&#146;s obligation under the Original ATPA and the Amended
ATPA.  See <i>Note 22 &#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">As at
December 31, 2007 and 2006, PLDT&#146;s aggregate remaining minimum obligation under
the Amended ATPA was approximately Php776 million and Php834 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
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"><i>Mandatory
Conversion and Purchase of Shares</i>.  As discussed in <i>Note 18 &#150;
Interest-bearing Financial Liabilities</i>, PLDT had issued a total of 3
million shares of Series V Convertible Preferred Stock, 5 million shares of
Series VI Convertible Preferred Stock and 4 million shares of Series VII
Convertible Preferred Stock in exchange for a total of 58 million shares of Series
K Class I Convertible Preferred Stock of Piltel, pursuant to the debt
restructuring plan of Piltel adopted in June 2001.  As at December 31, 2007, 2,690,650
shares of the Series V Convertible Preferred Stock, 4,614,801 shares of the Series
VI Convertible Preferred Stock and all of the remaining 3,842,000 shares of the
Series VII Convertible Preferred Stock had been voluntarily converted into shares
of PLDT&#146;s common stock and 30,790 shares of the Series V and 680,303 shares of the
Series VI Convertible Preferred Stock remained outstanding.</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">Each share
of Series V and VI Convertible Preferred Stock is convertible at any time at
the option of the holder into one share of PLDT&#146;s common stock.  Shares of
Series V and Series VI Convertible Preferred Stock which are outstanding on
June 4, 2008, the seventh anniversary of the issue date thereof, will be
mandatorily converted into shares of PLDT&#146;s common stock on the date
immediately following such anniversary date.  Under a put option exercisable
for 30 days following the mandatory conversion, holders of shares of PLDT&#146;s common
stock received on mandatory conversion of the Series V and VI Convertible
Preferred Stock will be able to require PLDT to purchase such shares of PLDT&#146;s common
stock for Php1,700 per share and US$36.132 per share, respectively.  </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">The aggregate value of the put options based on
outstanding shares as at December 31, 2007 was Php1,070 million assuming all of
the outstanding shares of the Series V and VI Convertible Preferred Stock were
mandatorily converted on June 5, 2008 and all shares of PLDT&#146;s common stock issued
upon such conversion were put to PLDT at that time in accordance with the terms
of the put option.  The market value of the underlying shares of PLDT&#146;s common
stock was Php2,256 million, based on the market price of PLDT common shares of
Php3,175 per share as at December 31, 2007.  On March 4, 2008, PLDT issued a
notice to the effect that all of the shares of the Series V and VI Convertible
Preferred Stock originally issued on June 4, 2001 and outstanding as at June 4,
2008 will be mandatorily converted on June 5, 2008 to shares of PLDT&#146;s common
stock.  As a result of such mandatory conversion, holders of shares of PLDT&#146;s
common stock received on mandatory conversion of the Series V and VI
Convertible Preferred Stock will be able to exercise the above described put
option in accordance with its terms.</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>Derivative</i><i>
Financial Liabilities.</i>  For the detailed discussion of our derivative
financial liabilities.  See <i>Note 26 &#150; Financial Assets and Liabilities</i>.</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>Various
trade and </i><i>other obligations.  </i>PLDT Group has various obligations to
suppliers for the acquisition of phone and network equipment, contractors for
services rendered on various projects, foreign administrations and domestic
carriers for the access charges, shareholders for unpaid dividends
distributions, employees for benefits related obligations, and various business
and operational related agreements.  As at December 31, 2007 and 2006, total
obligations under these various agreements amounted to approximately Php36,780
million and Php30,217 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"><b><i>Commercial
Commitments</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
December 31, 2007, our outstanding commercial commitments, in the form of
letters of credit, amounted to Php3,782 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;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>25. Provisions and Contingencies </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"><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 1994, following the
rejection of PLDT&#146;s formal protest against the assessments by the NTC of SRF,
PLDT and the NTC had been involved in legal proceedings before the Court of
Appeals and the Supreme Court.  The principal issue in these proceedings was
the basis for the computation of the SRF.  PLDT&#146;s position, which was upheld by
the Court of Appeals, but, as set forth below, rejected by the Supreme Court,
was that the SRF should be computed based only on the par value of the
subscribed or paid up capital of PLDT, excluding stock dividends, premium or
capital in excess of par.  The Supreme Court, in its decision dated July 28,
1999, ordered the NTC to make a recomputation of the SRF based on PLDT&#146;s
capital stock subscribed and paid.  Subsequently, in February 2000, the NTC
issued an assessment letter for the balance of the SRF, but in calculating said
fees, the NTC used as a basis not only capital stock subscribed or paid but
also the stock dividends.  PLDT questioned the inclusion of the stock dividends
in the calculation of the SRF and sought to restrain the NTC from
enforcing/implementing its assessment until the resolution of the said issue.
Prior to the resolution of the issue mentioned above, PLDT paid the SRF due in
2000 together with the balance due from the recalculation of the SRF and had
been paying the SRF due in September of each year thereafter, excluding the
portion that was based on stock dividends.</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
December 31, 2007, PLDT has paid, since 1994, a total amount of Php2,541
million in SRF, of which Php2,251 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">The Supreme Court, in a resolution
promulgated on December 4, 2007, upheld the NTC assessment of SRF based on
outstanding capital stock of PLDT, including stock dividends.  On April 3,
2008, PLDT complied with the Supreme Court Resolution in paying the outstanding
principal balance relating to stock dividends in the amount of Php455 million
to the NTC.</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Local
Business and Franchise Tax Assessments</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
discussed below, PLDT currently expects that going forward, PLDT will pay local
franchise taxes on an annual basis based on the gross receipts received or
collected for services rendered within the jurisdiction of the respective
taxing authority.  For this reason, we have made the appropriate provisions in
our consolidated financial statements as at December 31, 2007.</p>

<p style='margin-left:.25in;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">The
Local Government Code of 1991, or Republic Act (R.A.) 7160, which took effect
on January 1, 1992, extended to local government units, or LGUs, the power to
tax businesses within their territorial jurisdiction granted under Batas
Pambansa 337, and withdrew tax exemptions previously granted to franchise
grantees under Section 12 of R.A. 7082.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">PLDT believes, based on the opinion of its legal
counsel, that the Public Telecommunications Policy Act, or R.A. 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. 7160, implicitly restored its local franchise and business
taxes exemption privilege under Section 12 of R.A. 7082, or the PLDT Franchise
pursuant to Section 23 thereof or the equality of treatment clause.  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. 7160.  However, on March 25,
2003, in a ruling relating to a tax assessment by the City of Davao, the
Supreme Court decided that PLDT was not exempt from the local franchise tax.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><a
name="OLE_LINK37">Although PLDT believes that it
is not liable to pay local franchise and business taxes, PLDT has entered into
compromise settlements with several LGUs, including the City of </a>Makati, in order to
maintain and preserve its good standing and relationship with these LGUs.
Under these compromise settlements, which have mostly been approved by the
relevant courts, as at December 31, 2007, PLDT has paid a total amount of
Php694 million for local franchise tax covering prior periods up to the end of
2006.</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">PLDT had no longer
contested assessments of LGUs for franchise taxes based on gross receipts
received or collected for services within their respective territorial
jurisdiction as at December 31, 2007.</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">However, PLDT continues to contest
the imposition of local business taxes in addition to local franchise tax by
the Cities of Tuguegarao, Balanga and Caloocan in the amounts of Php1.9
million, Php0.2 million and Php6.2 million, respectively, for the years 1998 to
2003 for the City of Tuguegarao, and for the years 2005 to 2007 for the Cities
of Balanga and Caloocan.  PLDT is likewise contesting the imposition of a
business tax on the transmission of messages by the Municipality of San Pedro in the amount of Php0.3 million for the years 2005 to 2007.  In addition, PLDT is
contesting the imposition of franchise tax by the Province of Cagayan based on gross receipts derived from outside its territorial jurisdiction in the amount
of Php3 million for the years 1999 to 2006.</p>

<p style='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">While Smart
had received and paid under protest the local franchise tax assessment issued
by the City of Makati totaling approximately Php312 million, the Regional Trial
Court, or RTC, of Makati declared Smart exempt from payment of local franchise
tax to the City of Makati and on June 9, 2005, the Court of Appeals 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">Also, Smart had received LFT
assessments issued by the City of Iloilo amounting to approximately Php1
million.  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.  To date, Smart has not received any notice that the said decision had been
appealed by the City of Iloilo.</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>26. Financial Assets and 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">Our
principal financial liabilities, other than derivatives, comprise of bank loans
and overdrafts, convertible preferred stock, finance leases, trade and
non-trade payables. The main purpose of these financial liabilities is to finance
our operations.  We have various financial assets such as trade and non-trade receivables
and cash and short-term deposits, which arise directly from our operations. We
also enter into derivative transactions, primarily principal only currency swap
agreements, currency options, interest rate swaps and forward foreign exchange contracts
to manage the currency and interest rate risks arising from our operations and
sources of financing. Our accounting policies in relation to derivatives are
set out 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:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table sets forth our financial assets
and financial liabilities as at December 31, 2007 and 2006.</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:96.18%;margin-left:.25in;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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0"><b>Loans and receivables</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>Held-to-maturity investments</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>Held-for-trading</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>Derivatives used for hedging</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>Available-for-sale financial investments</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>Liabilities carried at amortized cost </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 financial assets and liabilities </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>Non-financial assets and liabilities</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>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=9 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:.05pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos) </p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0"><b>Assets
 as at December 31, 2007<br>
 <i>Noncurrent:</i></b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Property, plant and equipment &#150; net</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">159,414</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">159,414</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Investments in associates</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,351</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,351</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Investments-available-for-sale</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">143</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 143</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 143</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Investment in debt securities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">273</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 273</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 273</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Investment properties</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">577</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 577</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.25pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Goodwill and intangible assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">11,721</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">11,721</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Deferred income tax assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">13,757</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">13,757</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Derivative financial assets</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">59</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">  59</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">  59</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Prepayments - net of current portion</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,281</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,281</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Advances and refundable deposits - <br>
 net of current portion</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">734</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 734</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">296</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,030</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0"><b><i>Current:</i></b><br>
 Cash and cash equivalents</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">17,447</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">17,447</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">17,447</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">11,366</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,049</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">13,415</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">13,415</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Investment in debt securities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,115</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,115</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,115</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Trade and other receivables </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">12,645</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">12,645</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">12,645</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.25pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Inventories and supplies</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,167</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,167</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.25pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Derivative financial assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">227</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">670</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 897</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 897</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Current portion of prepayments </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,368</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,368</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Current portion of advances and refundable deposits</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">498</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 498</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Total
 assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">43,307</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 273</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,335</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 670</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 143</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">46,728</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">193,430</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">240,158</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;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:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0"><b>Liabilities
 as at December 31, 2007<br>
 <i>Noncurrent:</i></b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Interest bearing financial liabilities - <br>
 net of current portion</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">53,387</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">53,387</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">53,387</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Deferred income tax liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,066</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,066</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Derivative financial liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">530</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">7,211</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">7,741</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">7,741</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Pension and other employee benefits </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">4,540</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">4,540</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Customers&#146; deposits</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,201</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,201</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,201</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.25pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Deferred credits and other noncurrent liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">7,608</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">7,608</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,024</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">9,632</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0"><b><i>Current:<br>
 </i></b>Accounts payable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">10,605</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">10,605</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,648</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">12,253</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Accrued expenses and other current liabilities </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">16,570</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">16,570</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">5,359</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">21,929</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Current portion of derivative financial liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">237</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">5</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 242</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 242</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.25pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Provisions for assessments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,112</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,112</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Current portion of interest-bearing financial
 liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">8,764</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">8,764</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">8,764</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Dividends payable</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,071</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,071</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,071</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Income tax payable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,875</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,875</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Total
 liabilities</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 767</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">7,216</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">100,206</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">108,189</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">19,624</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">127,813</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Net assets and
 liabilities</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>43,307</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 273</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,568</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(6,546)</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 143</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(100,206)</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(61,461)</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>173,806</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>112,345</b></p>
 </td>
 </tr>
 <tr>
 <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   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><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='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='text-align:right' 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-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>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0"><b>Assets
 as at December 31, 2006<br>
 <i>Noncurrent:</i></b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-right:2.15pt;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-right:2.15pt;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-right:2.15pt;text-align:justify' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Property, plant and equipment &#150; net </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">164,190</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">164,190</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Investments in associates</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">636</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 636</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Investments-available-for-sale </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">116</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 116</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 116</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Investment properties </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">587</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 587</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.25pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Goodwill and intangible assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">12,214</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">12,214</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Deferred income tax assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">20,538</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">20,538</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Derivative financial assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">434</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 434</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 434</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Prepayments - net of current portion</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,368</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,368</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Advances and refundable deposits - <br>
 net of current portion</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">646</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 646</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">420</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,066</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0"><b><i>Current:<br>
 </i></b>Cash and cash equivalents</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">16,870</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">16,870</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">16,870</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">5,520</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,807</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">8,327</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">8,327</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Trade and other receivables</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">10,158</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">10,158</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">10,158</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Inventories and supplies</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,230</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,230</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.25pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Derivative financial assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">47</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">  47</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">  47</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Current portion of prepayments </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">3,967</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">3,967</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Current portion of advances and refundable deposits </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">   1</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">155</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 156</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Total
 assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">33,195</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">3,288</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 116</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">36,599</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">205,305</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">241,904</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;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;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;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:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0"><b>Liabilities
 as at December 31, 2006<br>
 <i>Noncurrent:</i></b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p style='margin-right:2.15pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Interest bearing financial liabilities - <br>
 net of current portion </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">65,244</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">65,244</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">65,244</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Deferred income tax liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">402</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 402</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Derivative financial liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,680</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">5,192</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">6,872</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">6,872</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Pension and other employee benefits</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,982</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,982</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Customers&#146; deposits</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,204</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,204</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,204</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:.25pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Deferred credits and other noncurrent liabilities </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">6,483</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">6,483</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,020</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">8,503</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt' style="margin-top:0;margin-bottom:0"><b><i>Current:<br>
 </i></b>Accounts payable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">7,348</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">7,348</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,286</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">8,634</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Accrued expenses and other current liabilities </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">13,288</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">13,288</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">9,847</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">23,135</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Derivative financial liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">108</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 108</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 108</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Provisions for assessments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">446</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 446</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Current portion of interest-bearing financial
 liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">17,309</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">17,309</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">17,309</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Dividends payable</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">774</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 774</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"> 774</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-top:0in;margin-right:2.9pt;margin-bottom:
 0in;margin-left:9.0pt;margin-bottom:.0001pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Income tax payable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,438</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">2,438</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Total
 liabilities</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">1,788</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">5,192</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">112,650</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">119,630</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">19,421</p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0">139,051</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b>Net assets and
 liabilities</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>33,195</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.15pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,500</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(5,192)</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b> 116</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(112,650)</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(83,031)</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>185,884</b></p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>102,853</b></p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following table sets forth the carrying values and
estimated fair values of our financial assets and liabilities recognized as at
December 31, 2007 and 2006.</p>

<p style='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:96.36%;margin-left:18.4pt;border-collapse:collapse;width:96.36% !msorm;
 border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid;height:15.35pt' style='page-break-inside:
 avoid !msorm;height:15.35pt !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height: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;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:15.35pt'>
 <p align=center style='margin-top:3.0pt;margin-right:0in;
 margin-bottom:0in;margin-left:40.3pt;margin-bottom:.0001pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Carrying Value</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:15.35pt'>
 <p align=center style='margin-left:40.55pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Fair Value</b></p>
 </td>
 </tr>
 <tr style='height:12.1pt' style='height:12.1pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:12.1pt'>
 <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;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:12.1pt'>
 <p align=right style='margin-right:3.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:12.1pt'>
 <p align=right style='margin-right:3.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:12.1pt'>
 <p align=right style='margin-right:3.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:12.1pt'>
 <p align=right style='margin-right:3.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:11.5pt' style='page-break-inside:
 avoid !msorm;height:11.5pt !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:11.5pt'>
 <p align=center style='text-align:center' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in;border:none !msorm;padding:0in 0in 0in 0in !msorm;
 height:11.5pt'>
 <p align=center style='margin-left:45.05pt;text-align:center' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>

 <tr style='height:11.25pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.25pt'>
 <p style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial
 Assets</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:11.25pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style="margin-top:0;margin-bottom:0">Investments-available-for-sale:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Listed
 equity securities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>77</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">55</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>77</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">55</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Unlisted
 equity securities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>66</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">61</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>66</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">61</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style="margin-top:0;margin-bottom:0">Investment in debt
 securities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>273</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>283</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style="margin-top:0;margin-bottom:0">Derivative financial assets:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Long-term
 foreign currency options</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>59</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">434</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>59</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">434</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt' style="margin-top:0;margin-bottom:0">Advances and refundable deposits &#150; net of current
 portion </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>734</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">646</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>657</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">564</p>
 </td>
 </tr>
 <tr style='height:8.95pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.95pt'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Total
 noncurrent financial assets</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,209</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,196</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,142</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,114</p>
 </td>
 </tr>
 <tr style='height:9.85pt'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:9.85pt'>
 <p style="margin-top:0;margin-bottom:0"><b>Current Financial Assets</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:11.7pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.7pt'>
 <p style="margin-top:0;margin-bottom:0">Cash and cash equivalents:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.7pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Cash
 on hand and in banks</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,944</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3,416</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,944</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3,416</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Temporary
 cash investments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>13,503</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">13,454</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>13,503</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">13,454</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>13,415</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">8,327</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>13,415</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">8,327</p>
 </td>
 </tr>
 <tr style='height:8.1pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style="margin-top:0;margin-bottom:0">Investment in debt
 securities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,115</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,115</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style="margin-top:0;margin-bottom:0">Trade and other receivables:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Foreign
 administrations</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>4,324</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3,836</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>4,324</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3,836</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Retail
 subscribers</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,861</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,027</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>3,861</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,027</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Corporate
 subscribers</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,040</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,742</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,040</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,742</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Domestic
 carriers</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,503</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,461</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,503</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,461</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Dealers,
 agents and others</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>917</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,092</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>917</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,092</p>
 </td>
 </tr>
 <tr style='height:8.1pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <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">Derivative financial assets:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:8.1pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Forward
 foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>863</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>863</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 </tr>
 <tr style='height:8.1pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Bifurcated
 embedded derivatives</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>34</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>34</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 </tr>
 <tr style='height:8.1pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.1pt'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt' style="margin-top:0;margin-bottom:0">Current portion of advances and refundable deposits </p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1</p>
 </td>
 </tr>
 <tr style='height:8.95pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.95pt'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">Total
 current financial assets</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>45,519</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">35,403</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>45,519</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">35,403</p>
 </td>
 </tr>
 <tr style='height:10.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:10.75pt'>
 <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;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:10.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>46,728</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:10.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">36,599</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:10.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>46,661</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:10.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">36,517</p>
 </td>
 </tr>
 <tr style='height:6.6pt' style='height:6.6pt !msorm'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:6.6pt'>
 <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;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:6.6pt'>
 <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;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:6.6pt'>
 <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;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:6.6pt'>
 <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;
 border:none !msorm;padding:0in 0in 0in 0in !msorm;height:6.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:8.1pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial
 Liabilities</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:.1in'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:.1in'>
 <p style="margin-top:0;margin-bottom:0">Interest-bearing financial
 liabilities:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:.1in'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Long-term
 debt - net of current portion</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>53,372</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">63,769</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>58,044</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:.1in'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">70,420</p>
 </td>
 </tr>
 <tr style='height:4.5pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:4.5pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Obligations
 under finance lease</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:4.5pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>15</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:4.5pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">106</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:4.5pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>15</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:4.5pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">106</p>
 </td>
 </tr>
 <tr style='height:9.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Preferred
 stock subject to mandatory redemption</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,369</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.45pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,528</p>
 </td>
 </tr>
 <tr style='height:5.85pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p style="margin-top:0;margin-bottom:0">Derivative financial
 liabilities:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:5.85pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Long-term
 currency swap</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>7,211</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,192</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>7,211</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,192</p>
 </td>
 </tr>
 <tr style='height:5.85pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Long-term
 foreign currency options</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>390</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,043</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>390</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,043</p>
 </td>
 </tr>
 <tr style='height:5.85pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Interest
 rate swap</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>140</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">413</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>140</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">413</p>
 </td>
 </tr>
 <tr style='height:5.85pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Bifurcated
 equity call options</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">224</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">224</p>
 </td>
 </tr>
 <tr style='height:5.85pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p style="margin-top:0;margin-bottom:0">Customers&#146; deposits</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,201</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,204</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,481</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,439</p>
 </td>
 </tr>
 <tr style='height:5.85pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt' style="margin-top:0;margin-bottom:0">Deferred credits and other noncurrent liabilities </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>7,608</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">6,483</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>6,553</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:5.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,609</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;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p style='margin-left:17.6pt' 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;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>70,937</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">80,803</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>73,834</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">85,974</p>
 </td>
 </tr>
 <tr style='height:4.0pt'>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:4.0pt'>
 <p style="margin-top:0;margin-bottom:0"><b>Current Financial Liabilities</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:4.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:4.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:4.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #F3F3F3;padding:0in 0in 0in 0in;height:4.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:4.95pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p style="margin-top:0;margin-bottom:0">Accounts payable:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Suppliers
 and contractors</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>8,493</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,562</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>8,493</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">5,562</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Carriers</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,843</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,593</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,843</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,593</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>269</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">193</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>269</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">193</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt;text-indent:-8.6pt' style="margin-top:0;margin-bottom:0">Accrued expenses and other current liabilities:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Utilities
 and related expenses</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>10,780</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">8,078</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>10,780</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">8,078</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Employee
 benefits</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,795</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,416</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>2,795</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,416</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Interest
 and other related costs</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,234</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,768</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,234</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,768</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Others</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,761</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,026</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,761</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">1,026</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style="margin-top:0;margin-bottom:0">Derivative financial
 liabilities:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Bifurcated
 equity call options</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>231</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>231</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Forward
 foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">92</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">92</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Interest
 rate swap</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>4</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>4</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Long-term
 currency options</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:6.75pt'>
 <p style="margin-top:0;margin-bottom:0">Interest-bearing financial
 liabilities:</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Notes
 payable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>493</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">201</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>493</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">201</p>
 </td>
 </tr>
 <tr style='height:8.1pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Current
 portion of long-term debt</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>6,775</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">16,184</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>6,775</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">16,184</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Obligations
 under finance lease</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>481</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">924</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>481</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">924</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Preferred
 stock subject to mandatory redemption</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,015</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,015</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style="margin-top:0;margin-bottom:0">Dividends payable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,071</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">774</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,071</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">774</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;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:9.85pt'>
 <p style='margin-left:26.6pt;text-indent:-9.0pt' 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;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>37,252</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">38,827</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>37,252</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">38,827</p>
 </td>
 </tr>
 <tr style='height:6.25pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0"><b>Total
 </b><b>Financial Liabilities</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>108,189</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">119,630</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>111,086</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:6.25pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">124,801</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following methods and assumptions were used to
estimate the fair value of each class of financial instrument for which it is
practicable to estimate such value:</p>

<p style='text-indent:0in;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>Long-term
financial assets and liabilities: </i> Fair value is based on the following:</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=1 cellspacing=0 cellpadding=0
 style='width: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>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;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Noncurrent portion of advances and refundable
 deposits</p>
 </td>
 <td   valign=top style=' border-top:none;border-left:
 none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <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
 values of future cash flows using the applicable zero coupon rates plus
 credit spread.</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:solid windowtext 1.0pt;
 border-top:none;background:#F3F3F3;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:13.5pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">U.S. dollar notes/convertible debt</p>
 <p style='margin-left:13.5pt;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;
 background:#F3F3F3;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 CIRR and Philippine Dealing System
 Treasury Fixing rates for similar types of loans.</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' border:solid windowtext 1.0pt;
 border-top:none;background:#E0E0E0;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;
 background:#E0E0E0;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>
 <tr>
 <td   valign=top style=' border:solid windowtext 1.0pt;
 border-top:none;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:13.5pt;text-indent:-10.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Customers&#146; deposits, deferred credits
 and other noncurrent liabilities</p>
 </td>
 <td   valign=top style=' border-top:none;border-left:
 none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <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
 values of future cash flows using the applicable zero coupon rates plus
 credit spread.</p>
 </td>
 </tr>
</table></center></div>

<p style='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>Preferred stock subject to
mandatory redemption:</i> The fair values were determined using a discounted
cash flow model.</p>

<p style='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">Derivative Financial
Instruments:</p>

<p style='text-indent:0in;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"><i>Foreign currency options:</i>
The fair values were computed using an option pricing model using market
volatility rates of the U.S. dollar and Philippine peso exchange rate as at
valuation date.</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Forward foreign exchange contracts, bifurcated foreign
currency forwards, foreign currency and interest rate swaps:</i>  The fair values were computed as the present value
of estimated future cash flows using market U.S. dollar and Philippine peso
interest rates as at valuation date.</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Bifurcated equity call options:  </i>The fair values were computed using an option pricing model using
market volatility rates of the PLDT share price as at valuation date.</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0"><i>Investments-available-for sale:  </i>Fair values were determined using quoted prices.</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='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, investment in debt securities, trade and
other receivables, current portion of advances and refundable deposits,
accounts payable, accrued expenses and other current liabilities, current
portion of interest-bearing financial liabilities, and dividends payable approximate
the carrying values as at the balance sheet date.</p>

<p style='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='text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='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 financial asset or liability
and exposures arising from forecast transactions.  Changes in the fair value of
these instruments representing effective hedges 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='text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<br clear=all
style='page-break-before:always'>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">The
table below sets out the information about our derivative financial instruments
as at December 31, 2007 and 2006:</p>

<p style='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' 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' style="margin-top:0;margin-bottom:0"><b>2007</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' style="margin-top:0;margin-bottom:0">2006</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>
 <p style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:9.35pt;
 margin-bottom:0in;margin-left:.2pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Maturity</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:6.4pt;text-align:center' style="margin-top:0;margin-bottom:0"><b>Notional</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' style="margin-top:0;margin-bottom:0"><b>Mark-to-market Gains (Losses)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p align=center style='margin-left:6.4pt;text-align:center' style="margin-top:0;margin-bottom:0">Notional</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">Mark-to-market Gains
 (Losses)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=4 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='margin-right:2.9pt;text-align:center' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b><i>PLDT</i></b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in'>
 <p 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' 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=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Forward
 foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:20.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>US$</b><b>134</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>Php296</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">US$&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">Php&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Transactions not designated as
 hedges:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='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' 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-top:0in;margin-right:20.9pt;
 margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:right' 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' style="margin-top:0;margin-bottom:0"><b>300</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>(</b><b>3,714)</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">300</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">(2,716)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.1pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-top:0in;margin-right:20.9pt;
 margin-bottom:0in;margin-left:5.05pt;margin-bottom:.0001pt;text-align:right' style="margin-top:0;margin-bottom:0">2012</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>250</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(3,496)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">250</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(2,475) </p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Long-term foreign currency bought <br>
 call options</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:20.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>136</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(389)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">167</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(747)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Long-term foreign currency sold <br>
 call options</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:20.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2009</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>136</b>(1)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>58</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:4.3pt;text-align:right' style="margin-top:0;margin-bottom:0">136(1)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">138</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Forward
 foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:20.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>16</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>20</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">202</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(90)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Interest
 rate swap</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:20.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2012</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>31</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(144)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">63</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(423)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Bifurcated
 equity call options</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:20.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>1 share</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(231)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">1 share</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(224)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Short-term
 currency options</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:20.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2007</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&#150;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='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:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(7,600)</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(6,543)</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b><i>Smart</i></b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:8.1pt'>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style="margin-top:0;margin-bottom:0">Cash flow hedges:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Forward
 foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:20.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>171</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>265</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid' style='page-break-inside:avoid !msorm'>
 <td   colspan=2 valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' padding:0in 0in 0in 0in 0in 0in 0in 0in !msorm'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Transactions not designated as
 hedges:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Forward
 foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:20.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">On
 loan proceeds</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:20.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>50</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>100</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:17.6pt' style="margin-top:0;margin-bottom:0">On
 gross U.S. dollar revenues</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:20.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>55</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>70</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Bifurcated
 embedded derivatives</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:20.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>5</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>34</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">15</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border:none;
 border-bottom:solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>469</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0"><b><i>ePLDT</i></b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style="margin-top:0;margin-bottom:0">Cash flow hedges:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:20.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Forward
 foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:20.9pt;text-align:right' style="margin-top:0;margin-bottom:0">2008</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>36</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>104</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='text-align:justify' 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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:11.5pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>(Php</b><b>7,027)</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <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-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">(Php6,499)</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:31.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0"><i>(1)</i><i>   Sold
call options of 2009 long-term foreign currency options based on the same
notional amount as the long-term foreign currency bought call option.</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:96.94%;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:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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=right style='margin-top:3.0pt;margin-right:.05in;
 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:.05in;
 margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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:53.95pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Presented
 as:</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Noncurrent
 assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>59</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;
 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">434</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Current
 assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>897</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 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">47</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Noncurrent
 liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(7,741)</b></p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,872)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Current
 liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(242)</b></p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(108)</p>
 </td>
 </tr>
 <tr style='height:3.5pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:3.5pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net
 liabilities</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(7,027)</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;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:3.5pt'>
 <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=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,499)</p>
 </td>
 </tr>
</table></center></div>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:31.5pt;text-indent:-13.5pt' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Analysis of losses (gains) on derivative financial
instruments for the years ended December 31, 2007 and 2006 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:96.94%;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   valign=bottom 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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>
 <tr style='height:8.0pt'>
 <td   valign=bottom 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=2 valign=top style=' border:none;
 padding:0in 0in 0in 0in;height:8.0pt'>
 <p align=center style='margin-left:54.05pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>
 <tr style='height:8.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 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 losses at end of year</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>(7,027)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">(6,499)</p>
 </td>
 </tr>
 <tr style='height:4.95pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net
 mark-to-market losses at beginning of year</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p align=right style='text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>(6,499)</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;
 height:4.95pt'>
 <p align=right style='text-align:right;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(3,284)</p>
 </td>
 </tr>

 <tr style='height:7.6pt'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;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;background:
 #E0E0E0;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>(528)</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 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">(3,215)</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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
 losses charged to cumulative translation adjustments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>(570)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='text-align:justify;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Settlements,
 accretion and conversion</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>(622)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">(3,643)</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Ineffective portion
 recognized in the profit or loss for the cash flow hedge</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>(4)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</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;
 background:#E0E0E0;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
 losses on derivative financial instruments (Note 5)</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(1,724)</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(6,858)</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>PLDT</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' 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 swap agreements, 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:.5in;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' style="margin-top:0;margin-bottom:0">To manage hedging costs, the
currency swap agreement relating to the 2009 fixed rate notes with a notional
amount of US$175 million 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 the option 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 U.S. dollar spot exchange rate is lower than the exchange
rate of Php52.50 to US$1.00, PLDT will have 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 4.34% and 6.17% per annum as at December 31, 2007 and 2006,
respectively. </p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">In December 2006, the currency option agreement was
partially terminated, thereby reducing the outstanding currency options
notional amount to US$167 million.  The total amounts settled for the unwinding
was Php40 million.</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">In January
2007, the currency option agreement was again partially terminated, thereby
further reducing the outstanding currency options notional amount to US$136
million.  The total amounts settled for the unwinding was Php177 million.</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">Concurrent with the above swap
agreement relating to the 2009 fixed rate notes, PLDT 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 above mentioned long-term currency option contract,
PLDT has the obligation to purchase U.S. dollars at an exchange rate of
Php52.50 to US$1.00 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:.25in' style="margin-top:0;margin-bottom:0">In December 2006, the currency
option agreement was partially terminated, thereby reducing the notional amount
to US$167 million.  Since changes in fair value have already been recognized as
profit or loss in prior periods, the corresponding proceeds from the partial
termination of the currency option contract amounted to Php7 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">In January
2007, the currency option agreement was again partially terminated, thereby
further reducing the outstanding notional amount to US$136 million.  The proceeds
from this transaction amounted to Php33 million.</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">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 exchange rate
at maturity, whichever is lower, and the option currency contract relating to
the counterparty&#146;s option to purchase foreign currency from PLDT at Php90.00 to
US$1.00 are not designated as a hedge.  Both option contracts have been
structured to include credit-linkage with PLDT as the reference entity similar
to the long-term currency swaps. </p>

<p style='margin-left:.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"><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='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 2012 and 2017.  As at December 31, 2007 and 2006, 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 Philippine peso-denominated loan exposures at agreed swap
exchange rates.  The agreed swap exchange rates are reset to the lowest U.S.
dollar/Philippine peso spot exchange rate during the term of the swaps, subject
to a minimum exchange rate.  In March and April 2004, PLDT entered into
amendments to keep the lowest reset exchange rate and unwind the downward
resettable feature of US$550 million of its long-term principal only currency
swap agreements in order to lower the running hedging cost of the swaps.  As at
December 31, 2007 and 2006, the outstanding swap contracts have an agreed
average swap exchange rate of Php50.76.</p>

<p style='text-indent:0in' 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,
these swaps included a credit-linkage feature with PLDT as the reference
entity.  The specified credit events include bankruptcy, failure to pay, obligation
acceleration, moratorium/repudiation, and restructuring of PLDT bonds or all or
substantially all of PLDT&#146;s obligations.  Upon the occurrence of any of these
credit events, subject to 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.  As at December 31, 2007 and 2006, US$686
million and US$717 million, respectively, 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 3.93% and 5.18%
per annum as at December 31, 2007 and 2006, respectively.</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:0in' style="margin-top:0;margin-bottom:0"><i>Forward Foreign Exchange Contracts</i></p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style="margin-top:0;margin-bottom:0">In 2007, PLDT entered
into short-term U.S. dollar forward foreign exchange sale contracts to hedge a
portion of monthly dollar revenues maturing monthly in 2008.  As at December
31, 2007, outstanding forward foreign exchange contracts not accounted for
under hedge accounting amounted to US$16 million with an average exchange rate
of Php43.19.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">PLDT entered into
short-term U.S. dollar forward foreign exchange purchase contracts to hedge
short-term foreign currency obligations.  There were no outstanding forward
foreign exchange contracts as at December 31, 2007.  As at December 31, 2006,
outstanding forward foreign exchange contracts amounted to US$202 million with
an average exchange rate of Php49.50.</p>

<p style='margin-left:.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"><i>Interest Rate Swap</i></p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:0in;page-break-after:avoid' 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, in April 2003, PLDT entered
into an agreement to swap the coupon on US$125 million of its 2012 fixed rate
notes into a floating rate Japanese yen amount.  Under this agreement, PLDT is
entitled to receive a fixed coupon rate of 11.375%, provided the Japanese yen
to U.S. dollar exchange rate stays above JP&yen;99.90 to US$1.00.  Below this
level, a reduced fixed coupon rate of 3% will be due to PLDT.  In order to
mitigate the risk of the Japanese yen strengthening below the agreed threshold,
in December 2003, PLDT 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% such that the fixed coupon rate due to PLDT when the Japanese yen
strengthens below the agreed threshold will be 8.375%.  Both swap agreements
include a credit-linkage feature with PLDT as the reference entity.</p>

<p style='text-indent:0in' 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">In March
2006, the interest rate and overlay swap agreements were partially terminated
to effectively lower the outstanding interest rate swap notional amount to US$63
million.  Since changes in fair values have already been recognized as profit or
loss in prior periods, the corresponding liability settled by PLDT amounted to
Php804 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">In April
2007, the interest and overlay swap agreements were again partially terminated
where outstanding notional amount was lowered to US$31 million.  Total amounts
settled for the unwinding is Php276 million.  </p>

<p style='margin-left:.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"><i>Bifurcated Equity Call Options</i></p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Pursuant to Piltel&#146;s debt restructuring plan, PLDT
issued its Series VI and VII Convertible Preferred Stock.  See <i>Note 18 &#150;
Interest-bearing Financial Liabilities</i>.  Each share of Series VI and VII
Convertible Preferred Stock is convertible at any time at the option of the
holder into one share of PLDT&#146;s common stock.  On the date immediately
following the seventh anniversary of the issue date of the Series VI
Convertible Preferred Stock and on the eighth anniversary of the issue date of
the Series VII Convertible Preferred Stock, the remaining outstanding shares
under these series will be mandatorily converted into shares of PLDT common
stock.  For 30 days thereafter, the holders of these mandatorily converted
shares of PLDT&#146;s common stock have the option to sell such shares of PLDT&#146;s common
stock back to PLDT for US$36.132 per share and JPY4,071.89 per share for
Series VI and VII, respectively.  On August 18, 2006, all of the remaining 3,842,000
shares of the Series VII shares were converted to PLDT common stock.  As at
December 31, 2007 and 2006, the negative fair market value of these embedded
call options amounted to Php231 million and Php224 million, respectively.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.5in;text-indent:0in' style="margin-top:0;margin-bottom:0"><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' style="margin-top:0;margin-bottom:0">In 2006, PLDT entered into
short-term U.S. dollar currency option contracts to hedge our other short-term
foreign currency obligations.  There were no outstanding currency option
contracts as at December 31, 2007.  As at December 31, 2006, outstanding U.S.
dollar currency option contracts amounted to US$7 million with an average
rating of US$50.40.</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"><a name="OLE_LINK66"></a><a
name="OLE_LINK52"></a><a name="OLE_LINK51"><b>Smart</b></a></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">Smart entered in U.S. dollar
forward foreign exchange sale contracts to hedge a portion of monthly dollar
revenues maturing in 2008.  As at December 31, 2007, outstanding forward
foreign exchange sale contracts not accounted for under hedge accounting
amounted to US$55 million with an average exchange rate of Php42.997.</p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Smart also entered into short-term U.S. dollar forward
foreign exchange sale contracts for a total amount of US$50 million as at
December 31, 2007 to hedge 100% of the total expected loan proceeds from the
undrawn US$50 million Nord/LB Facility with average exchange rate of Php43.561.</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in' style="margin-top:0;margin-bottom:0">Smart&#146;s
other embedded derivatives were bifurcated from service and purchase
contracts.  As at December 31, 2007 and 2006, outstanding contracts included
service contracts with foreign equipment suppliers and various suppliers
covering handset importations denominated in U.S. dollars, which is not the
functional currency of a substantial party to the contract or the routine
currency of the transaction.</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>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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The main
risks arising from our financial instruments are liquidity risk, foreign
exchange risk, interest rate risk and credit risk.  The importance of managing
those risks has significantly increased in light of the considerable change and
volatility in both the Philippine and international financial markets.  Our board
of directors reviews and approves policies for managing each of these risks.
Our policies for managing these risks are summarized below.  We also monitor
the market price risk arising from all financial instruments.</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"><i>Liquidity Risk</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">We need to manage our
liquidity profile to be able to finance our operations and capital
expenditures, service our maturing debts and meet our other financial
obligations.  To cover our financing requirements, we 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' style="margin-top:0;margin-bottom:0">As part of our liquidity risk
management program, we regularly evaluate our projected and actual cash flows,
including our loan maturity profiles, and continuously assess conditions in the
financial markets for opportunities to pursue fund-raising initiatives.  These
activities may include bank loans, export credit agency-guaranteed facilities,
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;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Any excess
funds are primarily invested in short-dated and principal-protected bank
products that provide flexibility of withdrawing the funds anytime.  We also
allocate a portion of our cash in longer tenor investments such as fixed income
securities issued or guaranteed by the Republic of the Philippines, or ROP, and Philippine banks and corporates, managed funds and other structured
products linked to the ROP.  We regularly evaluate available financial products
and monitor market conditions for opportunities to enhance yields at acceptable
risk levels.  Our investments are also subject to certain restrictions
contained in our debt covenants.  Our funding arrangements are designed to keep
an appropriate balance between equity and debt and to provide financing
flexibility while enhancing our businesses. </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 summary
of the maturity profile of our financial liabilities as at December 31, 2007
and 2006 based on contractual undiscounted payments is set out in <i>Note 24 &#150;
Contractual Obligations and Commercial Commitments</i>.</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>Foreign Currency Exchange
Risk</i></b></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The revaluation of
our foreign currency-denominated financial assets and liabilities as a result
of the appreciation or depreciation of the Philippine peso is recognized as
foreign exchange gains or losses as at the balance sheet date.  The extent of
foreign exchange gains or losses is largely dependent on the amount of foreign
currency debt and hedges we carry.  While
a certain percentage of our revenues are either linked to or denominated in
U.S. dollars, most 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.  As
such, a strengthening or weakening of the Philippine peso against the U.S. dollar
will decrease or increase in Philippine peso terms both the principal amount of
our unhedged foreign currency-denominated debts and the related interest
expense of our foreign currency-denominated capital expenditures and operating
expenses as well as our U.S. dollar-linked and U.S. dollar-denominated
revenues.  In addition, many of our financial ratios and other financial tests
are affected by the movements in the Philippine peso to U.S. dollar exchange
rate.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">To manage our foreign exchange
risks and to stabilize our cash flows to improve investment and cash flow
planning, we enter into forward foreign exchange contracts, currency swap
contracts, currency option contracts 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.  We use forward foreign exchange
purchase contracts, currency swap contracts and foreign currency option
contracts to manage the foreign currency risks associated with our foreign
currency-denominated loans.  We also enter into forward foreign exchange sale
contracts to manage foreign currency risks associated with our U.S. dollar-linked
and U.S. dollar-denominated revenues.  In order to manage hedge costs of these
contracts, we utilize structures that include credit-linkage with PLDT as the
reference entity, a combination of foreign currency option contracts, and fixed
to floating coupon only swap agreements.  We accounted for these instruments as
transactions not designated as hedges, wherein changes in the fair value are
recognized directly as income or expense for the year.</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
following table shows our consolidated foreign currency-denominated monetary financial
assets and liabilities and their Philippine peso equivalents as at December 31,
2007 and 2006:</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='page-break-inside:avoid;height:8.85pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:8.85pt'>
 <p style='margin-top:3.0pt;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:8.85pt'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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:8.85pt'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid;height:15.7pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:15.7pt'>
 <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:15.7pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' 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: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>Php</b>(1)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:15.7pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' 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:15.7pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">Php(2)</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='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in millions)</p>
 </td>
 </tr>

 <tr style='height:11.7pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.7pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial
 Asset</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>&nbsp;</b></p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Derivative
 financial assets</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>US$</b><b>1</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>Php</b><b>59</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">US$9</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Php434</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 13.45pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Current Financial Assets</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;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;border-top:solid windowtext 1.0pt;
 background:#E0E0E0;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;border-top:
 solid windowtext 1.0pt;background:#E0E0E0;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-top:solid windowtext 1.0pt;
 background:#E0E0E0;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>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash and
 cash equivalents</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;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>93</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>3,853</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">155</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">7,578</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term
 investments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;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>56</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>2,324</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">92</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">4,521</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Trade and
 other receivables</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;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>227</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>9,400</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">277</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">13,589</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative
 financial assets</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>23</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>967</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">47</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;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:13.45pt'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total
 current financial assets</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;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> 399</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;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>16,544</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;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"> 525</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;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">25,735</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total
 Financial Assets</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$400</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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>Php</b><b>16,603</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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">US$534</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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">Php26,169</p>
 </td>
 </tr>
 <tr style='height:12.0pt'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in;
 height:12.0pt'>
 <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:12.0pt'>
 <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:12.0pt'>
 <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:12.0pt'>
 <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:12.0pt'>
 <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:13.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Noncurrent Financial Liabilities</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p style='margin-left:17.6pt;text-indent:-8.6pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Interest-bearing financial liabilities - net of current portion</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$</b><b>1,126</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>Php46,612</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">US$1,239</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><a name="OLE_LINK98"></a><a name="OLE_LINK97">Php</a>60,756</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative
 financial liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>187</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>7,741</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">140</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">6,872</p>
 </td>
 </tr>
 <tr style='height:9.4pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;height:9.4pt'>
 <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;
 background:#F3F3F3;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"><b>1,313</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;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"><b>54,353</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;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">1,379</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in;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">67,628</p>
 </td>
 </tr>
 <tr style='height:11.65pt'>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:11.65pt'>
 <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;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:11.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in;height:11.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:#E0E0E0;
 padding:0in 0in 0in 0in;height:11.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accounts
 payable</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;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>160</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>6,614</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">268</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">13,115</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Accrued
 expenses and other current liabilities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;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>95</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>3,958</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">74</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">3,605</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivative
 financial liabilities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>6</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>242</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">108</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;height:
 13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Current
 portion of interest-bearing financial liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;padding:0in 0in 0in 0in;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>187</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;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>7,748</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;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">328</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#E0E0E0;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">16,104</p>
 </td>
 </tr>
 <tr style='height:11.65pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 11.65pt'>
 <p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total
 current financial liabilities</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 11.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 448</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 11.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>18,562</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 11.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 672</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 11.65pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">32,932</p>
 </td>
 </tr>
 <tr style='height:13.45pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Total
 Financial Liabilities</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in;
 height:13.45pt'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>US$1,761</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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>Php72,915</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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">US$2,051</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;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">Php100,560</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>   The exchange rate used to translate the U.S. dollar
amounts into Philippine peso was Php</i><i>41.411
to US$1.00, the peso-dollar rate as quoted through the Philippine Dealing
System as at December 31, 2007.</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>The exchange rate used to translate the U.S. dollar
amounts into Philippine peso was Php49.045 to</i><i> US$1.00, the peso-dollar rate as quoted through
Philippine Dealing System as at December 31, 2006.</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">As at April 3, 2008, the peso-dollar exchange rate was
Php41.552 to US$1.00.  Using this exchange rate, our consolidated net foreign
currency-denominated financial liabilities as at December 31, 2007 would have increased
by Php192 million.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">As at December 31, 2007, approximately 88% of our total consolidated debts was denominated in
U.S. dollars.  Consolidated foreign currency-denominated debt was reduced to
Php52,540 million as at December 31, 2007 from Php76,646 million as at December
31, 2006.  PLDT&#146;s outstanding long-term principal only currency swap contracts
and foreign currency option contracts amounted to US$550 million and US$136
million, respectively, as at December 31, 2007.  Consequently, the unhedged
portion of consolidated debts amounts was approximately 45% (or 36%, net of our
U.S. dollar cash balances) as at December 31, 2007. </p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">For the year ended December 31, 2007, approximately 34%
of our consolidated revenues were either denominated in U.S. dollars or were
linked to the U.S. dollars.  In this respect, the recent appreciation of the Philippine
peso against the U.S. dollar reduced our revenues, and consequently, our cash
flow from operations in Philippine peso terms.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">The Philippine peso
had appreciated by 16% against the U.S. dollar to Php41.411 to US$1.00 as at
December 31, 2007, from Php49.045 to US$1.00 as at December 31, 2006.
Likewise, as at December 31, 2006, the peso had appreciated by 8% to Php49.045
to US$1.00 from Php53.062 to US$1.00 as at December 31, 2005.  As a result of
the foreign exchange movements as well as the amount of our outstanding foreign
currency debts and derivatives, we recognized foreign exchange gains of Php7,990
million and Php4,823 million in 2007 and 2006, respectively.</p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Management conducted
a survey among our banks to determine the outlook of the peso-dollar exchange
rate until our next reporting date of March 31, 2008 and 2007.  Our outlook is
that the peso-dollar exchange rate may weaken/strengthen by 2% as compared to the
exchange rate of Php41.411 to US$1.00 as of year-end 2007 and Php49.045 to
US$1.00 as of year-end 2006.  At December 31, 2007 and 2006, if the peso-dollar
exchange rate had weakened/strengthened by 2%, with all other variables held
constant, profit after tax would have been higher/lower by Php1,088 million and
Php270 million for the year 2007 and 2006, respectively, and our stockholders&#146; equity
as at December 31, 2007 and 2006 would have been higher/lower by Php1,194
million and Php284 million, respectively, mainly as a result of foreign
exchange gains, losses on translation of U.S. dollar-denominated net
assets/liabilities and marked-to-market valuation of derivative transactions.</p>

<p style="margin-top:0;margin-bottom:0"><a name="OLE_LINK60"></a><a name="OLE_LINK59">&nbsp;</a></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><i>Interest Rate Risk</i></p>

<p style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Our exposure to the
risk of changes in market interest rates relates primarily to our long-term
debt obligations and short-term borrowings with floating interest rates. </p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our policy is to manage interest cost through a mix of
fixed and variable rate debts. We evaluate the fixed to floating ratio of our
loans in line with movements of relevant interest rates in the financial
markets. Based on our assessment, new financing will be priced either on a
fixed or floating rate basis. 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 risk associated with our liabilities and not for trading
purposes.</p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">The following tables set out the carrying amount, by
maturity, of our financial instruments that are exposed to interest rate risk
for the years ended December 31, 2007 and 2006.  Financial instruments that are
not subject to interest rate risk were not included in the table.</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>Year Ended December 31, 2007</b></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:103.52%;;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=right style=';text-align:right' 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=right style='text-align:right' 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 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=right style='text-align:right' 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=right style='text-align:right' 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=right style=';text-align:right' style="margin-top:0;margin-bottom:0"><b>In 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=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=right style='text-align:right' 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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Liabilities:</b></p>
 </td>
 <td   colspan=5 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Long-term Debt</p>
 </td>
 <td   colspan=5 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">US$
 Notes</p>
 </td>
 <td   colspan=5 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">136</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.4pt;text-align:right' style="margin-top:0;margin-bottom:0">250</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.4pt;text-align:right' style="margin-top:0;margin-bottom:0">300</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 686</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">28,403</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">387</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">28,016</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">770</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">31,900</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 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=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">10.500%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.4pt;text-align:right' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.4pt;text-align:right' style="margin-top:0;margin-bottom:0">8.350%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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</p>
 </td>
 <td   colspan=5 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">55</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">46</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">23</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 413</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">17,123</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">4,016</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">13,107</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">342</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">14,078</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">4.49% to<br>
 8.9%</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">4.49% to 6.0%</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">4.515% to 4.7%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">4.700%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">2.250%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Philippine
 Peso</p>
 </td>
 <td   colspan=5 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">93</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">38</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 131</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">5,420</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">33</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">5,387</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">125</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">5,168</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">7.090%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">6.500%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">6.500%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">5.625% to 6.50%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">6.125% to 6.50%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">U.S.
 Dollar</p>
 </td>
 <td   colspan=5 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">98</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">92</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">28</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 276</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">11,445</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">28</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">11,417</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">276</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">11,445</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=5 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">0.05% to 2.75% over US$ LIBOR</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">0.05% to 2.75% over US$ LIBOR</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">0.05% to 2.5% over US$ LIBOR</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">0.75% to 0.815% over US$ LIBOR</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;
 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=' background:#F3F3F3;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=' background:#E0E0E0;
 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</p>
 </td>
 <td   colspan=5 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">14</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">13</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">  54</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2,228</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">8</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2,220</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">54</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2,228</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=5 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">MART1 + 0.75% to 5.70%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">MART1 + 0.75% to 5.70%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">MART1 + 0.75% to 5.70%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">MART1 + 0.75% </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;
 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=' background:#F3F3F3;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;
 background:#E0E0E0;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;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 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;
 background:#E0E0E0;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;
 background:#E0E0E0;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;
 background:#E0E0E0;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;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>1,560</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>64,619</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>4,472</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>60,147</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;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>1,567</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>64,819</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=' background:#E0E0E0;
 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   colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 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$31 million)</p>
 </td>
 <td   colspan=3 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">3.5</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">144</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">144</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">3.5</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">144</p>
 </td>
 </tr>
 <tr>
 <td   colspan=5 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Japanese Yen (JPY3,759 million)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;
 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=' background:#E0E0E0;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=' background:#F3F3F3;
 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=5 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;
 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=' background:#F3F3F3;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;background:#E0E0E0;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=4 valign=top style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">8.11% over LIBOR</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='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;
 background:#E0E0E0;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;
 background:#E0E0E0;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;
 background:#E0E0E0;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;
 background:#E0E0E0;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;
 background:#E0E0E0;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;
 background:#E0E0E0;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;
 background:#E0E0E0;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=' border:none;
 border-bottom:double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='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>
 <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>&nbsp;</b></p>

<b><br clear=all
style='page-break-before:always'>
</b>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b>Year
Ended December 31, 2006</b></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:103.52%;;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=right style=';text-align:right' 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=right style='text-align:right' 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 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=right style='text-align:right' 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=right style='text-align:right' 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=right style=';text-align:right' style="margin-top:0;margin-bottom:0"><b>In 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=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=right style='text-align:right' 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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0"><b>Liabilities:</b></p>
 </td>
 <td   colspan=5 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Long-term Debt</p>
 </td>
 <td   colspan=5 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">US$
 Notes</p>
 </td>
 <td   colspan=5 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">130</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.4pt;text-align:right' style="margin-top:0;margin-bottom:0">167</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 847</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">41,510</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">539</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">40,971</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">965</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">47,228</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">7.85% to <br>
 10.625%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;
 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=' background:#E0E0E0;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=' background:#F3F3F3;
 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</p>
 </td>
 <td   colspan=5 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">69</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">55</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">46</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">33</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 483</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">23,683</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">5,326</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">18,357</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">376</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">18,438</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1.75% to<br>
 10%</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">4.49% to 10%</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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 10%</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">4.515% to 4.70%</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;
 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=' background:#E0E0E0;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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">Philippine
 Peso</p>
 </td>
 <td   colspan=5 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style=';text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">17</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">810</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 808</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">21</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">1,035</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;
 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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;
 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=' background:#E0E0E0;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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:9.0pt' style="margin-top:0;margin-bottom:0">U.S.
 Dollar</p>
 </td>
 <td   colspan=5 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">128</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">92</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">81</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">53</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"> 354</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">17,392</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">74</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">17,318</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">355</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">17,392</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=5 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">GOVCO&#146;s Cost + 0.20%; 0.05% to 2.75% over LIBOR</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">0.05% to 2.75% over LIBOR</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">0.05% to 2.75% over LIBOR</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">0.05% to 2.5% over LIBOR</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;
 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=' background:#F3F3F3;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=' background:#E0E0E0;
 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</p>
 </td>
 <td   colspan=5 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">6</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">11</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">23</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">  51</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2,511</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">12</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2,499</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">51</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">2,511</p>
 </td>
 </tr>
 <tr>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Interest rate</p>
 </td>
 <td   colspan=5 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">3% over<br>
 90-day PHIBOR, MART1 + 0.75%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">MART1 + 0.75%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">MART1 + 0.75%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='margin-right:.6pt;text-align:right' style="margin-top:0;margin-bottom:0">MART1 + 0.75%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;
 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=' background:#F3F3F3;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;
 background:#E0E0E0;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;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 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;
 background:#E0E0E0;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;
 background:#E0E0E0;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;
 background:#E0E0E0;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;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>1,752</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>85,906</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>5,953</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>79,953</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;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>1,768</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>86,604</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=' background:#E0E0E0;
 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   colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   colspan=2 valign=top style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   colspan=3 valign=bottom style=' background:#F3F3F3;
 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$63 million)</p>
 </td>
 <td   colspan=3 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">423</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">423</p>
 </td>
 <td   colspan=2 valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">9</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">423</p>
 </td>
 </tr>
 <tr>
 <td   colspan=5 valign=bottom style=' background:#E0E0E0;
 padding:0in 5.4pt 0in 5.4pt'>
 <p style='margin-left:13.5pt;text-indent:-4.5pt' style="margin-top:0;margin-bottom:0">Japanese Yen (JPY7,519 million)</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;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=' background:#E0E0E0;
 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=' background:#E0E0E0;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=' background:#F3F3F3;
 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=5 valign=top style=' background:#F3F3F3;
 padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">11.375%</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;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=' background:#F3F3F3;
 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=' background:#F3F3F3;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;background:#E0E0E0;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=4 valign=top style=' border:none;
 border-bottom:double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">8.11% over LIBOR</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='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;
 background:#E0E0E0;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;
 background:#E0E0E0;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;
 background:#E0E0E0;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;
 background:#E0E0E0;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;
 background:#E0E0E0;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;
 background:#E0E0E0;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;
 background:#E0E0E0;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=' border:none;
 border-bottom:double windowtext 1.5pt;background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' border:none;border-bottom:double windowtext 1.5pt;
 background:#E0E0E0;padding:0in 5.4pt 0in 5.4pt'>
 <p align=right style='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>
 <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='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='margin-left:.25in;page-break-after:auto' style="margin-top:0;margin-bottom:0" style="margin-top:0;margin-bottom:0">&nbsp;</h1>

<p style='text-indent:0in;page-break-after:avoid' 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 the particular instrument.
Financial instruments that are not subject to interest rate risk were not
included in the above tables.</p>

<p style='text-indent:0in;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p style="margin-top:0;margin-bottom:0">Management conducted
a survey among our banks to determine the outlook of the U.S. dollar and
Philippine peso interest rates until our next reporting date of March 31, 2008
and 2007.  Our outlook is that the U.S. dollar and Philippine peso interest
rates may move 190 basis points and 30 basis points higher/lower, respectively,
as compared to levels at year-end 2007 and 100 basis points and 5 basis points
higher/lower, respectively, as compared to levels at year-end 2006.  At
December 31, 2007, if U.S. dollar interest rates had been 190 basis points
higher/lower as compared to market levels at year-end 2007 and 100 basis points
higher/lower as compared to market levels at year-end 2006, with all other
variables held constant, profit after tax for the year 2007 and 2006 would have
been lower/higher by Php1,527 million and Php44 million, respectively, mainly
as a result of higher/lower interest expense on floating rate borrowings and
losses and gains on derivatives transactions.  Stockholders&#146; equity would have
been lower/higher by Php1,459 million and Php44 million, as at December 31,
2007 and 2006, respectively, mainly as a result of a decrease/increase in the
fair value of cash flow hedges.  At December 31, 2007 and 2006, if Philippine
peso interest rates had been higher/lower by 30 basis points and 5 basis
points, respectively, as compared to market levels at year-end 2007 and 2006,
with all other variables held constant, profit before tax would have been
lower/higher by Php1,132 million and Php853 million for 2007 and 2006,
respectively, mainly as a result of higher/lower interest expense on floating
rate borrowings and losses and gains on derivatives transactions.</p>

<p style='text-indent:0in;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>Credit Risk</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">Credit
risk is the risk that we will incur a loss arising from our customers, clients
or counterparties that fail to discharge their contractual obligations.  We
manage and control credit risk by setting limits on the amount of risk we are willing
to accept for individual counterparties and by monitoring exposures in relation
to such limits.</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 trade only with recognized
and 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 on-going basis to reduce our
exposure to bad debts.</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 established a credit quality
review process to provide regular identification of changes in the
creditworthiness of counterparties.  Counterparty limits are established and
periodically reviewed based on latest available financial data on our counterparties&#146;
credit ratings, capitalization, asset quality and liquidity.  Our credit
quality review process allows us to assess the potential loss as a result of
the risks to which we are exposed and take corrective actions.</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 table
below shows the maximum exposure to credit risk for the components of the consolidated
balance sheet, including derivative instruments.</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:96.94%;margin-left:18.4pt;border-collapse:collapse;width:96.94% !msorm;
 border-collapse:collapse !msorm'>

 <tr style='page-break-inside:avoid;height:12.0pt' style='page-break-inside:
 avoid !msorm;height:12.0pt !msorm'>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-top:solid windowtext 1.5pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:12.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-top:3.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Gross Maximum Exposure</b>(1)</p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.5pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:12.0pt'>
 <p align=right style='margin-top:3.0pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Net Maximum Exposure</b>(2)</p>
 </td>
 </tr>
 <tr style='height:9.85pt' style='height:9.85pt !msorm'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:9.85pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:9.85pt'>
 <p align=right style='margin-right:3.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;border-top:solid windowtext 1.0pt !msorm;border-left:
 none !msorm;border-bottom:solid windowtext 1.0pt !msorm;border-right:none !msorm;
 padding:0in 0in 0in 0in !msorm;height:9.85pt'>
 <p align=right style='margin-right:3.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:9.85pt'>
 <p align=right style='margin-right:3.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;border:none !msorm;
 border-bottom:solid windowtext 1.0pt !msorm;padding:0in 0in 0in 0in !msorm;
 height:9.85pt'>
 <p align=right style='margin-right:3.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</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:9.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Loans and receivables:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:8.95pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p style='margin-left:17.6pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Advances and refundable deposits</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>734</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">647</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>734</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">647</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash and
 cash equivalents</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>17,447</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,870</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>17,406</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,833</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term
 investments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>11,366</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,520</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>11,366</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,520</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Investment
 in debt securities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,115</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,115</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign
 administrations</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,324</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,836</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>4,324</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3,836</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Retail
 subscribers</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,861</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,027</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,861</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,027</p>
 </td>
 </tr>
 <tr style='height:3.5pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Corporate
 subscribers</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,040</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,742</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,040</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:3.5pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,742</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Domestic
 carriers</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,503</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,461</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>1,503</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,461</p>
 </td>
 </tr>
 <tr style='height:10.35pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Dealers,
 agents and others</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>917</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,092</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>917</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:10.35pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,092</p>
 </td>
 </tr>
 <tr style='height:8.95pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Held-to-maturity
 investments:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.95pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:9.85pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.85pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Investment
 in debt securities</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>273</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.85pt'>
 <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=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>273</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.85pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Investments-available-for-sale</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>143</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">116</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>143</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">116</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Held-for-trading:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term
 investments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;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>2,049</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">2,807</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>2,049</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">2,807</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Forward
 foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>193</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">3</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>193</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">3</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term
 foreign currency options</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>59</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">434</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>59</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">434</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Bifurcated
 embedded derivatives</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>34</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">44</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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>34</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">44</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Derivatives used for
 hedging:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:8.6pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Forward
 foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>670</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>670</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:9.0pt;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:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;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"><b>46,728</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,599</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>46,687</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">36,562</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"><i>(1)</i><i>   Gross
financial assets before taking into account any collateral held or other credit
enhancements or offsetting arrangements.</i></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>(2)</i><i>   Gross
financial assets after taking into account any collateral held or other credit
enhancements or offsetting arrangements.</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 table
below provides information regarding the credit quality by class of our
financial assets according to our credit ratings of counterparties:</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:97.02%;margin-left:.25in;border-collapse:collapse'>

 <tr>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   colspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Neither
 past due nor impaired</b></p>
 </td>
 <td   rowspan=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=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Past due but<br>
 not impaired</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-top:
 solid windowtext 1.5pt;padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;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>Total</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>Class A</b>(1)</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>Class B</b>(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-left:.05pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Impaired</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;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   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">(in million pesos)</p>
 </td>
 </tr>

 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-right:2.9pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>December
 31, 2007</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Loans and receivables:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Advances and refundable deposits </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 734</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">734</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,447</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15,150</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,297</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Short-term investments </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,366</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10,637</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">729</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investment in debt securities </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,115</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,115</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Retail subscribers </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,179</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,389</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">637</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,823</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">4,330</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Corporate subscribers </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,915</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">641</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">187</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,166</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,921</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Foreign administrations </p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,371</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,828</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">861</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,635</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,047</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Dealers, agents and others </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,151</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">983</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">315</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">196</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">657</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Domestic carriers </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,884</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">119</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,373</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">381</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Held-to-maturity investments:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investment in debt securities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 273</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">273</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investments-available-for-sale</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 143</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">113</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Held-for-trading:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,049</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,049</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Forward foreign exchange contracts </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 193</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">190</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Long-term foreign currency options </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  59</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">59</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Bifurcated embedded derivatives </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  34</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">34</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-9.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Derivatives used for hedging(3): </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Forward foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 670</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">670</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' 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:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>59,583</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>35,984</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>5,070</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>6,193</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>12,336</b></p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;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">&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-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-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=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>December 31, 2006</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Loans and receivables:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Advances and refundable deposits </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 647</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">647</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">16,870</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">15,756</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,114</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Short-term investments </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,520</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,218</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">302</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Corporate subscribers </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,160</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,267</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">206</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">211</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,476</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Retail subscribers </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7,874</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">681</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">220</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,132</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,841</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Foreign administrations </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">6,342</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,609</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">816</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,411</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,506</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Dealers, agents and others </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,587</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,222</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">7</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">89</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,269</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Domestic carriers </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,965</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">372</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">30</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">1,060</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">503</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investments-available-for-sale</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 116</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">90</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">26</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Held-for-trading:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,807</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,807</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Long-term foreign currency options</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 434</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">434</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;text-indent:-.35pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Bifurcated embedded derivatives</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">  44</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Forward foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">   3</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' 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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;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:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>53,369</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>30,150</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,721</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,903</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;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:2.9pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>16,595</b></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>   This includes low risk and good paying customer
accounts with no history of account treatment for a defined period and no
overdue accounts as at report date; and deposits or placements to
counterparties with good credit rating or bank standing financial review;</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>   This includes medium risk and average paying customer
accounts with no overdue accounts as at report date, and new customer accounts
for which sufficient credit history has not been established; and deposits or
placements to counterparties not classified as Class A; and</i></p>

<p style='margin-left:.25in;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>(3)</i><i>   Gross
receivables from counterparties, before any offsetting arrangements.</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 aging
analysis of past due but not impaired class of financial assets is 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:97.02%;margin-left:.25in;border-collapse:collapse'>

 <tr style='page-break-inside:avoid;height:7.5pt'>
 <td   rowspan=2 valign=bottom style=' border:none;
 border-top:solid windowtext 1.5pt;padding:0in 0in 0in 0in;height:7.5pt'>
 <p style='margin-top:3.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:7.5pt'>
 <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>Total</b></p>
 </td>
 <td   rowspan=2 valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in;height:7.5pt'>
 <p align=center style='margin-top:3.0pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Neither past due nor impaired</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:7.5pt'>
 <p align=center style='margin-right:.05in;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Past due but not impaired</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;height:7.5pt'>
 <p align=center style='margin-right:.05in;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;height:24.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:24.75pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>1-60 days</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:24.75pt'>
 <p align=center style='margin-right:.3pt;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>61-90 days</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:24.75pt'>
 <p align=center style='margin-right:.05in;text-align:center;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>Over 91 days</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;padding:0in 0in 0in 0in;height:24.75pt'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0"><b>Impaired</b></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=6 valign=bottom style=' border:none;
 padding:0in 0in 0in 0in'>
 <p align=center style='text-align:center;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">(in million pesos)</p>
 </td>
 </tr>

 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>December 31, 2007</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#E0E0E0;padding:
 0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <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=' background:#E0E0E0;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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Loans and receivables:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;padding:
 0in 0in 0in 0in'>
 <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=' background:#F3F3F3;
 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=' background:#F3F3F3;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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Advances and refundable deposits </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"> 734</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">734</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">17,447</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">17,447</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Short-term investments </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">11,366</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">11,366</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investment in debt securities </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">1,115</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">1,115</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Retail subscribers </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,179</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">2,026</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,513</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">231</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">79</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">4,330</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Corporate subscribers </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">7,915</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">828</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">715</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">133</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">318</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">5,921</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign
 administrations </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">5,371</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:.25in;margin-bottom:.0001pt;text-align:right;
 text-indent:-9.0pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,689</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">902</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">316</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">417</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,047</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Dealers, agents and others </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,151</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">1,298</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">30</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">4</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">162</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">657</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Domestic carriers </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,884</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">130</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">88</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">103</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,182</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">381</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Held-to-maturity investments:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 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">Investment in debt securities</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"> 273</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">273</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investments-available-for-sale</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 143</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">143</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Held-for-trading:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 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">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,049</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,049</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Forward foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 193</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">193</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term
 foreign currency options</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">  59</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">59</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Bifurcated
 embedded derivatives </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">  34</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">34</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Derivatives used for hedging:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Forward
 foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"> 670</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">670</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;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;
 background:#F3F3F3;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"><b>59,583</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>41,054</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>3,248</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b> 787</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2,158</b></p>
 </td>
 <td   valign=top style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>12,336</b></p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>December 31, 2006</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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=' background:#E0E0E0;
 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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Loans and receivables:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Advances
 and refundable deposits </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"> 647</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">647</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents </p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">16,870</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">16,870</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">&#150;</p>
 </td>
 <td   valign=top style=' background:#F3F3F3;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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term
 investments </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">5,520</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">5,520</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Corporate
 subscribers </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">8,160</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">1,473</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">139</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">38</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">34</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">6,476</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Retail
 subscribers </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">7,874</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">901</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">945</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">118</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">69</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">5,841</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Foreign
 administrations </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">6,342</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,425</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">694</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">267</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">450</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">2,506</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Dealers,
 agents and others </p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">2,587</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,229</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">25</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">10</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">54</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">1,269</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:.25in;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Domestic carriers </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">1,965</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">402</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">96</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">77</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">887</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">503</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Investments-available-for-sale</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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"> 116</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">116</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.0pt;text-indent:-9.0pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Held-for-trading:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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=' background:#F3F3F3;
 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 style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term
 investments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2,807</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">2,807</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Long-term
 foreign currency options </p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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"> 434</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">434</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 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">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Bifurcated
 embedded derivatives</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 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">  44</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:.05in;
 margin-bottom:0in;margin-left:9.35pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">44</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='margin-left:9.35pt;page-break-after:avoid' style="margin-top:0;margin-bottom:0">Forward
 foreign exchange contracts</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">   3</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">3</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>
 <tr style='page-break-inside:avoid'>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='margin-left:9.1pt;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:double windowtext 1.5pt;border-right:none;
 background:#E0E0E0;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"><b>53,369</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;
 background:#E0E0E0;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"><b>32,871</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;
 background:#E0E0E0;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"><b>1,899</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;
 background:#E0E0E0;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"><b> 510</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;
 background:#E0E0E0;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"><b>1,494</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;
 background:#E0E0E0;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"><b>16,595</b></p>
 </td>
 </tr>
</table></center></div>

<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>Impairment assessments</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 main consideration for the
impairment assessment include whether any payments of principal or interest are
overdue by more than 90 days or there are any known difficulties in the cash
flows of counterparties, credit rating downgrades, or infringement of the
original terms of the contract.  Our impairment assessments are classified into
two areas: individually assessed allowance and collectively assessed allowance.</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>Individually
assessed allowance</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
determine the allowance appropriate for each individually significant loan or
advance on an individual basis. Items considered when determining allowance
amounts include the sustainability of the counterparty&#146;s business plan, its
ability to improve performance once a financial difficulty has arisen,
projected receipts and the expected dividend payout should bankruptcy ensue,
the availability of other financial support, the realizable value of
collateral, if any, and the timing of the expected cash flows.  The impairment
losses are evaluated at each reporting date, unless unforeseen circumstances
require more careful attention.</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>Collectively assessed allowances</i></p>

<p style='margin-left:.5in' style="margin-top:0;margin-bottom:0"><i>&nbsp;</i></p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">Allowances are assessed
collectively for losses on loans and advances that are not individually
significant and for individually significant loans and advances where there is
no objective evidence of individual impairment.  Allowances are evaluated on
each reporting date with each portfolio receiving a separate review. </p>

<p style='margin-left:.25in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.25in;text-align:left' style="margin-top:0;margin-bottom:0">The collective assessment takes account of
impairment that is likely to be present in the portfolio even though there is
no objective evidence of the impairment in an individual assessment. Impairment
losses are estimated by taking into consideration the following information;
historical losses on the portfolio, current economic conditions, the
approximate delay between the time a loss is likely to have been incurred and
the time it will identified as requiring an individually assessed impairment
allowance, and expected receipts and recoveries once impaired.  The impairment
allowance is then reviewed by credit management to ensure alignment with our
policy.</p>

<p align=left style='margin-left:.25in;text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.25in;text-align:left;
page-break-after:avoid' style="margin-top:0;margin-bottom:0"><i>Capital Management</i></p>

<p align=left style='margin-left:.25in;text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.25in;text-align:left' style="margin-top:0;margin-bottom:0">We aim to achieve an optimal capital structure in
pursuit of our business objectives, which include maintaining healthy capital
ratios and strong credit ratings, and maximizing shareholder value. </p>

<p align=left style='margin-left:.25in;text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.25in;text-align:left' style="margin-top:0;margin-bottom:0">In recent years, our cashflow from operations has
allowed us to substantially reduce debts and, in 2005, resume payment of common
dividends to shareholders.  Since then, our strong cashflows have enabled us to
make investments in new areas and pay higher dividends.</p>

<p align=left style='margin-left:.25in;text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.25in;text-align:left;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">Our approach to
capital management focuses on balancing the allocation of cash and the
incurrence of debt as we seek new investment opportunities for new businesses
and growth areas.  Our current dividend policy is to pay out 70% of our core
earnings to our shareholders.  Further, in the event no investment
opportunities arise, we may consider the option of returning additional cash to
our shareholders in the form of special dividends or share buybacks.
Philippine corporate regulations prescribe, however, that we can only pay out
dividends or make capital distribution up to the amount of our unrestricted
retained earnings.</p>

<p align=left style='margin-left:.25in;text-align:left;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.25in;text-align:left' style="margin-top:0;margin-bottom:0">As part of our aim to maximize returns to our
shareholders, we obtained approval from our board of directors on January
29, 2008 for a buyback program of up to two million PLDT common shares.  See <i>Note
17 &#150; Equity</i>.</p>

<p align=left style='margin-left:.25in;text-align:left;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.25in;text-align:left' style="margin-top:0;margin-bottom:0">Some of our debt instruments contain covenants that
impose maximum leverage ratios.  In addition, our credit ratings from the
international credit ratings agencies are based on our ability to remain within
certain leverage ratios.</p>

<p align=left style='margin-left:.25in;text-align:left;
page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>

<p align=left style='margin-left:.25in;text-align:left' style="margin-top:0;margin-bottom:0">We monitor capital using several financial leverage
measurements calculated in conformity with Philippine Financial Reporting
Standards, such as net debt to equity ratio.  Net debt is derived by deducting
cash and cash equivalents and short-term investments from total debt (notes
payable and long-term debt).  Our objective is to maintain our net debt to
equity ratio below 100%.</p>

<div align='center'><center><table style='font-family:arial,helvetica,sans-serif;font-size:9pt'  border=0 cellspacing=0 cellpadding=0
 style='width:96.8%;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   valign=bottom style=' border-top:solid windowtext 1.5pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 padding:0in 0in 0in 0in'>
 <p align=right style='margin-top:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>2007</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:0in;margin-right:4.3pt;
 margin-bottom:0in;margin-left:.05pt;margin-bottom:.0001pt;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">2006</p>
 </td>
 </tr>
 <tr style='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-left:9.4pt;text-indent:-9.4pt;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;height:8.0pt'>
 <p align=center style='margin-left:54.05pt;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=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p style='margin-left:9.4pt;text-indent:-9.4pt;page-break-after:
 avoid' style="margin-top:0;margin-bottom:0">Long-term debt, including current portion</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>60,147</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.1pt'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">79,953</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Notes payable</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>493</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">201</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Total debt</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>60,640</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">80,154</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Cash and cash equivalents</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(17,447)</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(16,870)</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Short-term investments</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>(13,415)</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in'>
 <p align=right style='text-align:right;page-break-after:avoid' style="margin-top:0;margin-bottom:0">(8,327)</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;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net debt</p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>29,778</b></p>
 </td>
 <td   valign=bottom style=' border-top:solid windowtext 1.0pt;
 border-left:none;border-bottom:solid windowtext 1.0pt;border-right:none;
 background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">54,957</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' border:none;background:
 #E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Equity attributable to
 equity holders of PLDT</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>111,113</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">102,521</p>
 </td>
 </tr>
 <tr>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p style='page-break-after:avoid' style="margin-top:0;margin-bottom:0">Net debt to equity ratio</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0"><b>27%</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 double windowtext 1.5pt;background:#E0E0E0;padding:0in 0in 0in 0in'>
 <p align=right style='margin-right:.05in;text-align:right;
 page-break-after:avoid' style="margin-top:0;margin-bottom:0">54%</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%;border:none;padding:0in' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

<p style="margin-top:0;margin-bottom:0"><b>27. Supplemental Cash
Flow Information</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=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-right:2.9pt;text-align:right' style="margin-top:0;margin-bottom:0"><b>2007</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">2006</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">2005</p>
 </td>
 </tr>
 <tr style='height:8.0pt'>
 <td   valign=bottom 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-left:54.05pt;text-align:center' style="margin-top:0;margin-bottom:0">(in
 million pesos)</p>
 </td>
 </tr>
 <tr style='height:8.45pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.45pt'>
 <p style="margin-top:0;margin-bottom:0">Supplemental information for noncash investing activity:</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:8.45pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:4.95pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p style='margin-left:17.6pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Fair value
 of future earn-out payments</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>1,048</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:4.95pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&#150;</p>
 </td>
 </tr>

 <tr style='height:7.6pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.6pt'>
 <p style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:7.6pt'>
 <p align=right style='text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:9.0pt'>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p style="margin-top:0;margin-bottom:0">Supplemental information for noncash financing activities:</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>&nbsp;</b></p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 <td   valign=bottom style=' background:#F3F3F3;
 padding:0in 0in 0in 0in;height:9.0pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">&nbsp;</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p style='margin-left:17.6pt;text-indent:-9.0pt' style="margin-top:0;margin-bottom:0">Conversion
 of preferred stock subject to mandatory <br>
 redemption (Note 18)</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>313</b></p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">11,020</p>
 </td>
 <td   valign=bottom style=' background:#E0E0E0;
 padding:0in 0in 0in 0in;height:6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">2,591</p>
 </td>
 </tr>
 <tr style='height:6.75pt'>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 6.75pt'>
 <p style='margin-left:8.6pt' style="margin-top:0;margin-bottom:0">Recognition of asset retirement
 obligations (Note 8)</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0"><b>48</b></p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">45</p>
 </td>
 <td   valign=bottom style=' border:none;border-bottom:
 solid windowtext 1.0pt;background:#F3F3F3;padding:0in 0in 0in 0in;height:
 6.75pt'>
 <p align=right style='margin-right:.05in;text-align:right' style="margin-top:0;margin-bottom:0">63</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 align=left style=';text-align:left' style="margin-top:0;margin-bottom:0">&nbsp;</p>

</div>

</body>

</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
