Premiere Entertainment Productions, Inc.

January 5, 2000 PSE CIRCULAR FOR BROKERS NO. 021-00 SUBJECT : Premiere Entertainment Productions, Inc . Premiere Entertainment Productions, Inc. ("PEP") furnished the Exchange a copy of its Amended SEC Form 11-Q/Quarterly Report for the quarter ended September 30, 1999, with the following additional information on Item 2. Management's Discussion and Analysis of Financial Condition and. Results of Operations: ". . . While the company inactively participated in the film making, its financial condition as of September 30, 1999 remained intact with the slight improvement in its working capital as compared to December 31, 1998 figure. Disposal of unnecessary assets and increased in sale of film rights for TV and video licensing moderately helped rebuild its depleting operating fund. Moreover, the total net contributions from operating activities reached P3.10 million despite a net loss of P18.68 million booked for the period as shown on the statement of cash flow. The net loss was basically the result of all non-cash items or previous year's carry-over film projects costs that are being amortized over a certain period of time on the basis of total expected revenues in the future. cdll Additionally, the Company granted additional advances to its affiliated company, Premium Events Palace, Inc. to help sustain its business operations causing the investment and advances account to increase by P.682 million. Other assets constituting deferred costs relative to the company's business restructuring and IPO were reduced to P18.21 million from P23.07 million last December 31, 1998 principally due to the amortized costs recognized for the period. Likewise, account payables and installment payables fairly dropped resulting from payments of trade accounts and installment amortization of Jollibee condominium units." A copy of the amended Cash Flow Statement for the above-mentioned period is attached. For your information. (SGD.) MARIA ISABEL T. GARCIA OIC, Listings & Disclosure Group PREMIERE ENTERTAINMENT PRODUCTIONS INC. STATEMENT OF CASH FLOWS Nine months ended September 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES Net Income/(Loss) (18,682,965.93) (37,246,973.91) Adjustments to reconcile net loss to net Cash provided by (used in) operating activities Depreciation 4,856,563.97 7,739,359.39 Amortization of deferred cost 4,862,404.75 6,084,222.02 Changes in operating assets & liabilities: Decrease (increase) in: Receivable (991,913.38) (29,666.857.41) Film cost inventory 15,037,828.80 19,282,255.21 Prepaid expenses 162,050.59 1,527,988.50 Increase (Decrease) in: Accounts payable & accrued expenses (3,526,080.55) 23,272,553.68 Unearned income from sponsored film exhibits 2,064,450.73 (516,516.38) Net cash provided by (used) in operating activities 3,782,338.98 (9,523,968.90) CASH FLOWS FROM INVESTING ACTIVITIES (Additions to)/sale of property & equipment 1,188,967.33 (2,346,926.88) Payment of advances to subsidiaries (682,152.68) (22,634,626.37) (Increase)/Decrease in other assets 0.00 (8,027,042.28) Net cash used in investing activities 506,814.65 (33,008,595.53) CASH FLOWS FROM FINANCING ACTIVITIES Payment of installment payable (3,216,857.61) (5,796,913.15) Net cash provided by (used in) financing activities (3,216,857.61) (5,796,913.15) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,072,296.02 (48,329,477.58) CASH EQUIVALENTS AT BEGINNING OF YEAR 14,197,292.22 60,907,765.29 CASH & CASH EQUIVALENTS AT END OF MONTH/YEAR 15,269,588.24 12,578,287.71 ============================================================================