PSE Circular for Brokers No. 032-99

January 8, 1999 PSE CIRCULAR FOR BROKERS NO. 032-99 January 6, 1999 Disclosure Department Listing and Disclosure Group Philippine Stock Exchange, Inc. (PSE) Philippine Stock Exchange Center Exchange Road, Ortigas Center Pasig, Metro Manila Attention: Ms . Raquel R . Angeles Assistant, Disclosure Department Dear Ms. Angeles : In connection with your request for a written confirmation and clarification on the news article in the January 6, 1999 issue of the Philippine Daily Inquirer and captioned "Tan, Sy seen bidding for Petron", we wish to reiterate our previous advice that any intended sale by PNOC of its shares in Petron has not been officially relayed to the Petron Board of Directors nor to Petron Management. The source of the newswriter, Mr. Gil Cabacungan, Jr., is certainly not Petron Management. We re-affirm that as far as Petron is concerned, there are no plans as of yet on how PNOC's share in the oil firm would be divested. We wish to re-state that the Shareholders' Agreement between PNOC and the Arabian Oil Company B.V. (AOC) dated March 4, 1994 will govern any sale either by PNOC or AOC of the shares. We trust that the foregoing will satisfies your requirements. Very truly yours, (SGD.) LIBERADOR V. VILLEGAS Corporate Secretary