PSE Circular for Brokers No. 039-99

January 8, 1999 PSE CIRCULAR FOR BROKERS NO. 039-99 January 7, 1999 Ms. Raquel R. Angeles Assistant Disclosure Department Listing & Disclosure Group 4/F PSE Center, Exchange Rd. Ortigas Center, Pasig City Dear Ms. Angeles: Herewith is a copy of our reply to SEC's request for a disclosure and clarification from Petron concerning the article "Petron Gets Fewer Fuel Deals From Napocor" which appeared in the January 6, 1999 issue of the Manila Times. cdt Very truly yours, (SGD.) ARMANDI P. PESTANO Manager Corp . Communications Dept . January 7, 1999 Ms. Leonisa Z. Garcia Chief, SERD 2 Securities & Exchange Commission SEC Bldg., EDSA Greenhills Mandaluyong City Dear Ms. Garcia: This refers to your request for a disclosure from Petron relating to the article that appeared in the newspapers yesterday, January 6, which stated that Petron ended up with 5.5% of Napocor's fuel requirements, and that the deals won by Petron are equivalent to 973 kiloliters of bunker fuel and 3,672 kiloliters of diesel oil. The article further stated that the disqualification could have cost Petron a potential revenue loss of P2 billion. The facts are these: 1. Petron got 5.5% of the volumes that Napocor bided out . Since we continue to supply some volumes that were not bided out, we will actually be supplying around 15% of Napocor's fuel requirements. 2. The total volume involved in the contracts that we won is 189,000 kiloliters, not 4,645 kiloliters. 3. Although we will not be supplying fuel to Napocor directly for those volumes that we lost, we are making arrangements to supply fuel to the winning bidders. We will also be exporting any surplus fuel that we produce. These measures will ameliorate any revenue impact, if any, arising from a lower Napocor supply contract. Very truly yours, (SGD.) ARMAND I. PESTANO Manager Corp . Communications Dept