Arrested were Roy Cailan, 30, of Mandaue, Cebu; and Antonio Solis, 35, of Bacoor, Cavite.
Later recovered by the police from their stolen silver-gray Nissan Maxima sedan with plate number PSH 761 were two carbines, a fragmentation grenade, two hammers and four M-16 magazines with live ammunition.
The police said a mobile patrol car crew earlier spotted the suspects car suspiciously parked along Hidalgo Lim Street in Ermita at 12:45 a.m. with four men aboard.
The prowl cars crew became even more suspicious after noticing that the cars engine was running. As the policemen approached the car to investigate, the car suddenly sped towards Baclaran prompting the prowl car to give chase.
Police said that as the suspects made their way towards Arquiza Street, they opened fire at the pursuing policemen. This prompted the chasing prowl car to call for back-up and six other prowl cars responded.
According to police, the suspects drove against the traffic on M.H. del Pilar Street, turned right to United Nations Avenue and right again on Taft Avenue.
Police tried to block the suspects in front of the Philippine General Hospital but failed to stop them as they again opened fire at the policemen.
At about 1 a.m. the police said the suspects lost control of their car which careened unto an island at the corner of Nakpil Street and Taft Avenue.
The suspects scampered out of their car but the policemen managed to arrest Cailan and Solis. Their two unidentified cohorts who managed to elude arrest and are now being hunted.
Police added that the suspects had tampered with the license plates of their car to make it appear as PNM 939, instead of PSH 761.
The "Martilyo" (hammer) gang of robbers is infamous for robbing pawnshops and jewelry stores using mallets and hammers to smash glass display cases.
After the heist, the robbers would explode a grenade to thwart pursuing security guards and policemen.
Meanwhile, agents of the National Bureau of Investigation arrested yesterday a policeman who has long been absent without official leave (AWOL) for alleged involvement in a robbery with homicide case.
The NBI identified the suspect as Joel Seraon, 33, formerly assigned with the Philippine National Police-Special Action Force headquarters in Fort Sto. Domingo, Sta. Rosa, Laguna.
According to the NBI, Seraon is an alleged member of a gang of motorcycle-riding robbers that had previously victimized traders in Manilas Divisoria and San Andres districts.
The NBI said Seraon and another suspect, Ramon Artigas, snatched the handbag of Tessie Tomale, as she was walking along San Andres St. at about 9 p.m. last March 6.
Seraon and Artigas were aboard a black Enduro motorcycle when they pounced on Tomale, who died after she fell, her head hitting the pavement.