PNOC Exploration Corporation, the upstream petroleum and coal arm of the state-owned Philippine National Oil Company declares dividends amounting to PhP 1.002 billion, as a result of its 2008 net income of PhP 3.05 billion – the highest income attained since the company’s inception in 1976.

PNOC EC has initially declared PhP 200 million on June 9 at PhP 0.099 per share, of which PhP 199.6 million will be paid to the government while PhP 421 thousand will be paid to public stockholders on July 24. An additional PhP 802 million was declared on July 22 at PhP 0.401 per share, of which PhP 800 million will be paid to the government while PhP 1.69 million will be paid to public stockholders on or before August 26. These values translate to a total of PhP 1.002 billion dividends declared at PhP 0.50 per share, of which PhP 1 billion will be paid to the national government with the remaining PhP 2.1 million paid to the public stockholders. PNOC EC’s shares of stock are 99.78% owned by the Philippine government through PNOC.

The company’s PhP 3.05 billion income in 2008 can be attributed to the increase in revenues from the Malampaya Project and coal operations, brought about by higher gas and coal prices in the world market.

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This press release is not an offer of securities for sale in the United States or elsewhere. The shares of PNOC EC are not being registered under the US Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States unless registered under the Securities Act or pursuant to an exemption from such registration. There will be no public offering of the shares of the company in the United States.

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Contact person: Emmelyn A. de Guzman

Tel. +63(2) 840-1471 / 479-9400 (local 254)