PSE Circular for Brokers No. 068-99

January 14, 1999 PSE CIRCULAR FOR BROKERS NO. 068-99 January 13, 1999 PHILIPPINE STOCK EXCHANGE, INC. Phil. Stock Exchange Center, Exchange Road Ortigas Center, Pasig City, Metro Manila Attention: Ms . Luisa Buenaventura Supervisor, Disclosure Dept . Gentlemen : We write to inform you that we have sent letters to all of our banks stating that our negotiations with Clark Development Corporation are ongoing and that we are hopeful that a settlement beneficial to both parties will be reached. However, the disruption of our operations in the casino, has severely curtailed our cash flows. We stated the need for a breathing spell to enable us to concentrate all our resources in resolving the issues with CDC and to bring in investment funds to get us back to normalcy. In view of the foregoing, we requested for a 90-day period during which bank creditors would defer principal maturities and interest payments. During this 90-day period, Mondragon will take urgent steps to a) effect a settlement of our issues with CDC and Pagcor b) bring in a new investor and/or bridge financing and c) prepare a new financial plan with the help of our recently-appointed financial advisors, to be presented to the banks. cdt Very truly yours, (SGD.) FAUSTINO S. ROBERTO EVP Chief Finance Officer