RFM Corporation

January 12, 1999 PSE CIRCULAR FOR BROKERS NO. 050-99 January 11, 1999 PHILIPPINE STOCK EXCHANGE, INC . Disclosure Department Listings and Disclosure Group Philippine Stock Exchange Center Exchange Road, Ortigas Center Pasig City Fax No. 637-8811 636-0809 Attention: MS . GRACE DE GUIA Compliance Supervisor SUBJECT : RFM Corporation RFM-SLT Swap Gentlemen : This is to certify that RFM Corporation has full knowledge of PCIB Securities, Inc.'s disclosure dated January 8, 1999 (copy attached) pertaining to procedures to be followed by brokers participating in the RFM-SLT share swap, and duly authorizes PCIB Securities, Inc. to make such disclosure in the Company's behalf: LLpr Thank you very much. Very truly yours, (SGD.) RAYMOND B. AZCARATE Vice-President Finance Division January 8, 1999 PHILIPPINE STOCK EXCHANGE Philippine Stock Exchange Center, Exchange Road, Ortigas Center, Pasig City Attention: Jose Luis U . Yulo, Jr . President Gentlemen, With respect to the ongoing tender offer by RFM Corp. to swap shares of RFM Corp. for the shares of Selecta Dairy Products, Inc. minority shareholders, PCIB Securities, Inc. would like to reiterate the procedures for participation in the RFM-SLT shares swap, for which offer the final day is 15 January 1999. Brokers should ask their clients with shares in scrip form who wish to participate to fill up the Application to Swap Form provided by RFM. On the basis of such client commitments, brokers should then separate the Selecta shares submitted by their clients under PCD from those in certificate form. Shareholders should submit the Selecta certificates duly endorsed in blank to Securities Transfer Services, Inc. along with the application to swap forms. For shares under PCD, brokers/custodians should fax their Transmittal Letter to PCIB Securities Inc. (forms already supplied by PCIBSI), then electronically transfer the SLT shares under PCD to PCIBSI account B 131 AC. PCIBSI will check, match, then fax back acceptance and conforme. The SLT shares and the corresponding RFM shares will be crossed simultaneously on a day T not later than 15 trading days after 15 January 1999. PCIBSI shall electronically transfer the RFM shares to the brokers whose clients sold SLT shares via PCD by the normal settlement day (T+4). RFM shares in scrip will be available at Far East Bank Transfer Office on or before cross date. Thus, all SLT shareholders we submitted their SLT shares in exchange for RFM shares will be able to trade the RFM shares on T itself. Clients who wish to purchase SLT shares for inclusion in the swap have until 11 January 1999 to do so. Schedule of fees : For only one fractional share (defined as 1 share of SLT) per broker, RFM Corp will pay P3.00 For one transfer only of SLT shares per broker/custodian to PCIBSI, RFM Corp. will reimburse participants via PCIBSI for the PCD fee. PCD fees for subsequent transfers, withdrawals and re-submissions are for the account of the participant. For the transfer of RFM shares to the participating brokers, RFM Corp, will reimburse participants for the PCD charges through PCIBSI We hope that this will serve as a reminder, as well as, a clarification for all PSE member brokers on the swap transfer process. prLL Thank you very much. Very truly yours, (SGD.) RAMON VICENTE T. KABIGTING Vice President and General Manager