PLDT and Rocket Internet Agree to Create Philippines Internet Group

- PLDT and the APACIG to create a joint venture with focus on online business development in the Philippines

- New online enterprise will bundle activities of existing high-growth companies and numerous models to be launched in the coming years

- Transaction closure planned for Q1 2015

Manila, Philippines & Berlin, Germany, 21^st January 2015 - Philippine Long Distance Telephone Company ("PLDT", PSE: TEL, NYSE: PHI), the leading telecom operator in the Philippines and Rocket Internet AG ("Rocket", ISIN DE000A12UKK6, RKET), today announced a new joint venture to further strengthen their existing partnership and to foster the development of internet-based businesses in the Philippines. PLDT and the Asia Pacific Internet Group ("APACIG") will become partners in the new Philippines Internet Group ("PHIG"), which will concentrate on creating and developing online businesses in the Philippines.

Through Voyager Innovations, Inc (a wholly-owned subsidiary of Smart Communication, Inc which in turn is also wholly-owned by PLDT), PLDT is investing 30m EUR for a 33.3 percent stake with an option to increase this to 50 percent. The remaining shares are held by APACIG, which is 50 percent owned by Rocket.

Following the successful model of Rocket's four existing Regional Internet Groups, PHIG will leverage local market and business model insights, facilitate commercial, strategic and investment partnerships, enable local recruiting and sourcing and accelerate the rollout of online startups. It will drive the activities of high-growth companies which are already operating in the Philippines like Lamudi, Carmudi, Clickbus and Pricepanda, and aims to launch numerous new companies in the coming quarters.

For PLDT, this marks a milestone in its strategy to increasingly invest in businesses that provide digital growth opportunities and develop new revenue streams. This is supported by increasing disposable income and internet penetration - key drivers for eCommerce growth - in the Philippines where a vast majority of mobile subscribers are tech-savvy and open to alternative payment systems for their daily purchases.

Napoleon L. Nazareno, President and CEO of PLDT, said: "At PLDT, we are firmly committed to paving the way for the country's digital future. We have already built the Philippines' most extensive internet infrastructure. Now we are excited to extend our partnership with Rocket Internet and look forward to harnessing their knowledge and experience in building innovative internet services that will further support our mission of enriching our people's lives."

Oliver Samwer, Founder and CEO of Rocket Internet, added: "With a population of about 100 million people and more than 44 million internet users, the Philippines is a highly promising market. We are glad that with PLDT, the Philippines' number one telecom operator, we have a strong investor on board with deep local expertise and the infrastructure to best serve customer needs. Our strategic partnership will accelerate the development of the Philippines Internet Group as the country's leading online powerhouse and help our businesses succeed."

The transaction is subject to the approval of the regulatory authorities and is expected to be concluded in the first quarter, 2015.

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.

About APACIG
The Asia Pacific Internet Group (www.apacig.com) was founded in 2014 and has become the leading online platform in Asia, building top internet companies in the region. The group's network consists of 11 e-commerce and online marketplace companies, operating across 15 countries.

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