09:46     FIRST PACIFIC<00142> - Announcement (1)                             

    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)                                                        
                                                                              
    COMPLETION OF A DISCLOSEABLE TRANSACTION RELATING TO                      
    THE GUARANTEE OF THE 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)                                       
                                                                              
    First Pacific announces the completion on 18 January                      
    2005 of an issue of US$199 million in principal amount                    
    of Zero Coupon Guaranteed Exchangeable Notes due 2010                     
    by First Pacific Finance, a wholly owned subsidiary                       
    of First Pacific.                                                         
                                                                              
    Reference is made to the announcement of First Pacific                    
    Company Limited ("First Pacific") dated 12 January                        
    2005. The board of directors of First Pacific are                         
    pleased to announce the completion on 18 January 2005                     
    of the issue of US$199 million in aggregate principal                     
    amount of Zero Coupon Guaranteed Exchangeable Notes                       
    due 2010 (the "Notes") by First Pacific Finance                           
    Limited ("First Pacific Finance"), a wholly owned                         
    subsidiary of First Pacific.                                              
                                                                              
    The Notes, which are constituted by a Trust Deed dated                    
    18 January 2005, are zero coupon Notes exchangeable                       
    into shares of common stock of Php5.00 each of                            
    Philippine Long Distance Telephone Company and mature                     
    on 18 January 2010 at 131.97 per cent. of their                           
    principal amount. Under the terms of the Notes, First                     
    Pacific has unconditionally and irrevocably                               
    guaranteed payment by First Pacific Finance of                            
    amounts due in respect of the Notes.                                      
                                                                              
    First Pacific Finance intends to lend the net proceeds                    
    from the sale of the Notes to First Pacific and First                     
    Pacific intends to use the net proceeds for general                       
    corporate purposes including acquisitions in line                         
    with First Pacific's principal strategic objectives,                      
    repayment of debt and working capital.                                    
                                                                              
    UBS AG was the manager of the issue of the Notes. The                     
    Notes have been offered and sold to persons whose                         
    ordinary business involves buying, selling or