Dear Shareholders

I referred last year to the recent focus of building our investment portfolio, and I am pleased to see that we are beginning to see good growth in our recent investments. I am increasingly confident that once the development plans for these investments have been completed, their value will be enhanced.

All our businesses have performed well in a challenging and volatile year. It is a credit to the breadth of our portfolio that we are able to report our fifth consecutive year of improved earnings.

Whilst PLDT's traditional business grew at a modest rate we are seeing very strong growth in its data and broadband businesses, in which the company with its extensive network is very well positioned to exploit. Consequently, PLDT was able to make a dividend payment of 100% out of its core earnings. Whilst the company will have to remain vigilant in light of competitive pressures and tightening margins, the strength of its management and marketing in particular should see a consistent performance in 2010.

MPIC's performance in 2009 showed immense improvement. Its water business showed further progress in potable water being delivered to more customers, and higher billed volume as a result of the diligent rollout of its capex program. The marketing initiatives for the tollroad business have also been applied with considerable focus and average daily traffic volume increasing to over 150,000 vehicles. This positions the business extremely well as tollways expansions are planned for the next few years. MPIC's investment activity during the year in size was focused on Meralco. With the recent consolidation of the company's interest in Meralco, with that of Piltel, in Beacon Electric Asset Holdings, Inc., I have the firm belief that we will see the Meralco's performance improve above the rise of its earnings this year. MPIC has a formidable portfolio of infrastructure businesses. With the additional management that is being recruited to reinforce the existing core, I am confident we will see further significant growth in earnings and value in 2010.

Indofood's complementary strategic business units were able to deliver its fifth consecutive year of good results. Whilst palm oil prices remained below the level of previous years, this adverse impact was offset with a robust performance of the consumer branded products business as consumer demand remained strong during the year. Brand recognition and value were very positive contributors, combined with lower inflation. The outlook for 2010 for our business remains positive with modest inflation and strong domestic demand. We will continue to expand our businesses through deepening our distribution in the rural area and enhancing our marketing strategies, as well as accelerating our planting program for oil palm plantations. The plan for listing PT Indofood CBP Sukses Makmur ("ICBP") is well underway with the completion of the internal restructuring. We believe this will further unlock Indofood's value and provide greater opportunities for ICBP to expand further.

Philex has contributed to the Company's performance this year in a significant way, and its future development remains linked to the new Silangan Project for gold and copper in Mindanao. It is encouraging to see that progress is being made in bringing the project forward to fruition.

First Pacific has continued to invest and increase its interest in the mining sector and in the power business as well. It is expected that this portfolio of assets will bring improved returns. The long term value enhancing characteristic of our portfolio will in due course, be complemented by an enhanced shareholders' value.

Sincerely

Anthoni Salim
Chairman

23 March 2010