NEWSFLASH

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SMART POSTPONES IPO OFFERING

Manila, Oct. 26, 1997 - Smart Communications Inc. has decided to postpone the initial public offering (IPO) of its 450 million shares due to the current instability of the stock market and the peso rate.

The 450 million shares represent 20 percent of the company's common shares. Smart is expected to generate about P6 billion from the shares offering.

The IPO proceeds have been earmarked to fund the company's P8.9 billion expansion program which started this year. Smart, the country's leading cellular mobile telephone system provider, intends not only to beef up its mobile phone facilities but also to facilitate its roll out program.

Smart had earlier set its public offering for the first quarter of this year, but was forced to postpone because of perceived poor stock market activities.

Under its proposed expansion plan, the company aims to double its existing cell sites within three years with the installation of 297 additional cell sites until the end of this year. It also targets to double its subscriber base from 308,000 to 600,000 this year.

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