PLDT and Rocket Internet create global Joint Venture for Mobile-First Payment Solutions with a focus on Emerging Markets

- PLDT and Rocket create a global 50/50 JV for mobile-first payment services with a focus on emerging markets

- JV combines key existing payment assets from both PLDT/Smart e-Money Inc. and Rocket

- JV to leverage Rocket's network of online companies in more than 100 countries and PLDT/Smart e-Money Inc.'s pioneering mobile payments platform

- Transaction planned to close in Q1 2015

Manila, Philippines & Berlin, Germany, 6^th January 2015 - Philippine Long Distance Telephone Company ("PLDT", PSE: TEL, NYSE: PHI), the leading telecoms operator in the Philippines, and Rocket Internet AG ("Rocket", ISIN DE000A12UKK6, RKET), the leading Internet platform outside the US & China, today announced a definitive agreement to establish a global Joint Venture for payment services with a focus on emerging markets, with each partner holding a 50 percent stake.

This project, envisaged as a global partnership that was kicked off by the pre-IPO investment of PLDT in Rocket in 2014, builds on the complementary strengths of Rocket and PLDT, to drive the massive adoption of online and mobile payment solutions in emerging markets.

PLDT will contribute the intellectual property, platforms and business operations of its market leading mobile-first payment platform Smart e-Money Inc. ("SMI"), a pioneer in mobile banking and mobile wallet services which has handled transactions valued at approximately EUR 3.4 billion in 2013. With over 5 million active customers and 300.000 trade accounts, SMI owns and manages the Philippines' biggest "branchless banking" network, certified at the highest global security and governance standards as a financial service platform. Rocket will contribute its participations in Paymill Holding GmbH ("Paymill") and Payleven Holding GmbH ("Payleven"), two of the leading payment platforms for high growth, small-and-medium-sized e-commerce businesses across Europe.

The combination of PLDT and Rocket assets creates a leader in mobile payments expertise uniquely positioned to capture the global potential of mobile-first payment services especially in emerging markets.

Subject to approval by the relevant authorities, the transaction is planned to close in Q1 2015.

Napoleon L. Nazareno, President and CEO of PLDT, said:

"PLDT continues to build on its strategy to become a driving force in the digital economy, and with Rocket, we have a partner who understands the DNA of the global Internet market more than any other company. We look forward to continuing the long-term success story of Smart Money and optimizing the synergies between e-commerce and innovative mobile-first payment solutions."

Oliver Samwer, Founder and CEO of Rocket Internet, added:

"This Joint Venture is the next logical step of our valuable partnership with PLDT and we are pleased that our shared vision for the growth opportunities of the global payment market has been implemented in such an expedited fashion. Rocket's network of companies combined with PLDT's 14 years of experience in the mobile payment industry will allow us to deliver world-class innovations in mobile money and micro-payments around the world."

Ends

Media Contact Rocket Internet:
Andreas Winiarski, Senior Vice President Global Communications
T: +49 30 300 13 18 68
E: [email protected]

Media Contact PLDT:
Ramon R. Isberto, Head, Corporate Communications and Public Affairs
T: +632-511-3101
E: [email protected]

About Rocket Internet:
Rocket's mission is to become the world's largest Internet platform outside of China and the United States. Rocket identifies and builds proven Internet business models and transfers them to new, underserved or untapped markets where it seeks to scale them into market leading online companies. Rocket is focused on online business models that satisfy basic consumer needs across three sectors: e-Commerce, marketplaces and financial technology.
Rocket started in 2007 and now has more than 25,000 employees across its network of companies, which operate in more than 100 countries on five continents. Rocket Internet AG is listed on the Frankfurt Stock Exchange (ISIN DE000A12UKK6, RKET). For further information visit www.rocket-internet.com.

About PLDT
PLDT is the leading telecommunications provider in the Philippines. Through its principal business groups - fixed line and wireless - PLDT offers a wide range of telecommunications and multimedia services across the Philippines' most extensive fiber optic backbone and fixed line, and cellular network. PLDT is listed on the Philippine Stock Exchange (PSE: TEL) and its American Depositary Shares are listed on the New York Stock Exchange (NYSE:PHI). PLDT has one of the largest market capitalizations among Philippine listed companies. Further information can be obtained by visiting the web at www.pldt.com.