TELECOMMUNICATIONS BUSINESS

As a result of its overall successful experience as a telecommunications pioneer in the Philippines, Citadel has positioned itself to take advantage of various opportunities in the field. Citadel made an initial investment in 2001 in an emerging Philippine broadband company, Textron Corporation, a provider of connectivity solutions to various companies and corporate entities. Citadel has also identified certain selected markets where it hopes to apply its highly successful model of providing capital and management leadership together with other investors as a means of expansion in this industry.

Textron Corporation

Textron is a growing Philippine broadband company providing corporate customers with connectivity solutions via satellite and radio microwave. Originally founded as a systems integrator by a family of engineers, the company received a telecommunications franchise in 1998 as well as an infusion of capital and management support from Citadel in 2001 to complete a transformation into a fast growing business. The company designs, installs and maintains complete network solutions giving its customers lower costs and higher performance.

Textron has chosen to focus on serving corporate customers, linking nationwide operations of various Philippine companies, allowing them to share vital information on a real time basis. The company has invested in a high-speed satellite communications network giving Textron the ability to deploy a range of interactive data and web-based applications for its customers.

Textron’s list of customers in the Philippines highlights the company’s ability to provide its services to a number of different industries including commercial banking (Rizal Commercial Banking and Equitable Banking), telecommunications (Digitel Philippines and Easy Call Communications), retailing (Philippine Seven Corporation, the local affiliate of 7/11 stores), and service providers (Monark Equipment, distributors of Caterpillar).

Pacific Telecoms, Inc (PTI)

Pacific Telecom Inc. (PTI) is a venture owned by the Delgado family. It acts as a special-purpose vehicle for strategic investments in international telecommunications assets. Currently, it has purchased a majority stake in Micronesia Telecom Corp. (located in the Pacific island of Saipan) from Verizon Communications. The acquisition has gained approval from the United States FCC and DOJ. Recent approval from the Commonwealth Telecommmunications Commission (CTC) was also obtained. MTC is located in the Pacific island of Saipan, part of the Commonwealth of Northern Marianas Islands. MTC is a full service telecom company providing a broad range of services, including fixed line, wireless, and data.