PSE Circular for Brokers No. 038-00

January 7, 2000 PSE CIRCULAR FOR BROKERS NO. 038-00 January 6, 2000 PHILIPPINE STOCK EXCHANGE, INC. PSE Exchange Center, Exchange Road Ortigas Center, Pasig City Attention: Atty . Ruben L . Almadro VP-Compliance & Surveillance Group Gentlemen : In response-to your fax letter dated January 6, 2000, which we received at 10:29 A.M. today, requesting Basic Consolidated, Inc. (BSC) "to furnish the Philippine Stock Exchange of any information relating to the unusual movement in trading of BSC shares", we wish to inform you that the increase in the price of the BSC shares was possibly due to a news item which appeared in the Philippine Daily Inquirer issue dated January 5, 2000 of which publication BSC has no involvement. However, the information in the article is partly true. The findings regarding the prospects were made by our Drilling Operator, Arco International Oil, the main recommendation of which is to commit to a well this year. However, the same is not yet final in view of the recent take over of Arco by BP-Amoco. Hence, we deem it proper to wait for the new management of Arco to confirm the recommendation before we make the disclosure so as not to confuse the public. Very truly yours, (SGD.) ATTY. CARLOS A. ROSALES VP & Corporate Secretary