The head of a day care centre in the Philippines has seized a busload of his children, saying he is demanding better housing and education for them.
The man identified as Jun Ducat, and at least one other armed hostage-taker, took the 32 children and two teachers hostage as they departed for a trip.
Police and worried parents surrounded the bus as the drama unfolded outside Manila City Hall.
Mr Ducat is reported to have agreed to free the children at 1900 (1100GMT).
But the reported deadline has now passed without any sign of an end to the siege.
Mr Ducat had earlier told local media he had no intention of harming the children.
Using a mobile phone from the bus, Mr Ducat said he was demanding better housing and education for the 145 children at his centre in Manila's poor Tondo district.
"I am so sorry I took these children in a violent action to call the attention of the Filipino people to open their minds to the police reality," he said.
One boy suffering from a fever was released.
Some of the parents who had gathered at the cordon were reported to be in near hysteria as the struggled to make sense of the unfolding events.
"[Mr Ducat] told us it was a field trip. We knew Mr Ducat and he has been very kind. Please let our children go," Clara Moreno was quoted by the AFP news agency as saying.
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A local office worker told the BBC News website that huge crowds had gathered at the scene.
"TV stations, firetrucks, an ambulance, and policemen are also around the area," Ryan Buaron said.
"I think it was a good thing that bus is airconditioned because the temperature outside is too warm."
The hostage-takers told police via messages on cardboard that they possessed an Uzi assault rifle, a revolver and two grenades, as well as food and water for two days.
A local senator, Ramon Revilla, who was reported to have known Mr Ducat, boarded the bus for a short time to try to persuade him to surrender.
"He has requested more time and he would come out with the children," the senator told journalists after he got off the bus. "I am asking the police not to make any move that would agitate him."
Television pictures showed children waving from the bus, and ice cream was seen being delivered by a policeman.
Officials said Jun Ducat was involved in a hostage-taking incident using fake grenades 20 years ago.
Gen Reynaldo Varilla, head of the national capital region police command, told local radio he had instructions to ensure no-one got hurt.
"Hopefully we can convince the hostage-takers," he said.
This is the second hostage situation in Manila in two weeks. On 14 March, police shot dead a marine who took four people hostage in a court over an eviction issue.
PHOTO CAPTION
Children look out of a school bus in Manila March 28, 2007. (Reuters)
BBC