09:06     FIRST PACIFIC<00142> - Announcement & Resumption (1)                

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility for the contents of this announcement,                     
    makes no representation as to its accuracy or                             
    completeness and expressly disclaims any liability                        
    whatsoever for any loss howsoever arising from or in                      
    reliance upon the whole or any part of the contents                       
    of this announcement.                                                     
                                                                              
    This announcement is not an offer to sell or the                          
    solicitation of an offer to buy any securities and                        
    neither this announcement nor anything herein forms                       
    the basis for any contract or commitment whatsoever.                      
    Neither this announcement nor any copy hereof may be                      
    taken into or distributed in the United States or to                      
    any U.S. persons. Securities may not be offered or                        
    sold in the United States absent registration or an                       
    exemption from registration, and the securities                           
    described herein will be sold in accordance with all                      
    applicable laws and regulations.                                          
                                                                              
    FIRST PACIFIC COMPANY LIMITED                                             
    (incorporated with limited liability under the laws                       
    of Bermuda)                                                               
    Website: http://www.firstpacco.com                                        
    (Stock Code: 0142)                                                        
                                                                              
    A DISCLOSEABLE TRANSACTION RELATING TO                                    
    THE GUARANTEE OF A PROPOSED ISSUE BY                                      
                                                                              
    FIRST PACIFIC FINANCE LIMITED                                             
    (incorporated with limited liability under the laws                       
    of the Cayman Islands)                                                    
                                                                              
    OF US$199,000,000                                                         
    ZERO COUPON GUARANTEED EXCHANGEABLE NOTES DUE 2010                        
    EXCHANGEABLE INTO COMMON STOCK OF PAR VALUE PHP5.00                       
    EACH OF                                                                   
                                                                              
    PHILIPPINE LONG DISTANCE TELEPHONE COMPANY                                
    (incorporated with limited liability under the laws                       
    of the Republic of the Philippines)                                       
                                                                              
    The directors of the Guarantor hereby announces that                      
    on 12 January, 2005 the Guarantor and the Issuer                          
    entered into the Subscription Agreement with UBS AG,                      
    whereby UBS AG agreed to subscribe for the Notes on                       
    the Closing Date. The Notes will be issued by the                         
    Issuer in registered form in an aggregate principal                       
    amount of US$199,000,000 and will be unconditionally                      
    and irrevocably guaranteed by the Guarantor. The                          
    Notes are to be issued at the issue price of 100 per                      
    cent. of the aggregate principal amount thereof, and                      
    in the denomination of US$10,000 each.                                    
                                                                              
    The deemed disposal of PLDT Shares by the Guarantor                       
    through the issuance of the Notes constitutes a                           
    discloseable transaction of the Guarantor under the                       
    Listing Rules and is required to be disclosed by way                      
    of this press announcement, and a circular with                           
    respect to this transaction will be issued to                             
    shareholders of the Guarantor shortly.                                    
                                                                              
    The holder of each Note will have an Exchange Right                       
    to exchange such Note at any time during the Exchange                     
    Period for a pro rata share of the Exchange Property,                     
    initially comprising 340.9091 PLDT Shares (subject                        
    to adjustment) for each US$10,000 principal amount                        
    of Notes. The closing price of one PLDT Share as quoted                   
    on the Philippine Stock Exchange on 11 January, 2005                      
    was Php 1,360. The value of the Exchange Right                            
    represents a premium of 21 per cent. over the closing                     
    price of the PLDT Shares as quoted on the Philippine                      
    Stock Exchange on 11 January, 2005.