PSE Circular for Brokers No. 070-00

January 12, 2000 PSE CIRCULAR FOR BROKERS NO. 070-00 January 11, 2000 MS. LUISA W. BUENAVENTURA Supervisor, Disclosure Dept. Philippine Stock Exchange, Inc. 4th Flr, PSE Center, Exchange Road Ortigas Center, Pasig City Dear Ms. Buenaventura: We acknowledge receipt of your facsimile letter dated 11 January 2000 requesting clarification of the news article published in the Manila Times on 11 January 2000 entitled "Investors to put in P3B in CCI". First, allow us to reiterate that Mr. Eduardo Cojuangco is not an investor in Centennial City. The Board of Directors and Shareholders approved yesterday the Corporation's capital raising plans and have designated the Executive Committee to discuss and negotiate investment terms with a group of domestic investors who may make its formal entry into CCI for a proposed capital infusion of P3B, through the issuance of Convertible Preferred Shares. The resulting equity holdings of the strategic investor will depend on the negotiations. At present, Guoco Holdings (Phils.) Inc. owns approximately 24% of CCI. For your information. Yours truly, (SGD.) RAY C. ESPINOSA Corporate Secretary Investors to put in P3B in CCT A GROUP of domestic investors will make its formal entry into Centennial City Inc. (CCI) this week bringing in fresh investments worth illegible the property development firm. llcd The strategic partners, together with the Guoco Holdings Inc., should take about 60 percent of CCI. This would dilute the holdings of other majority shareholders the Amari Coastal Bay Development Corp. and the Italian-Thai Development (BVI) Co, Ltd. The two majority shareholders currently have a 20 percent and 10-percent stakes in CCI respectively. "We will announce the strategic investors this week," said Ray Espinosa, the newly-elected corporate secretary of CCI in an interview. Reports were rife that San Miguel Corp. chairman Eduardo Cojuangco was one of the investors set to come in to CCI. Federico Cadiz, CCI executive vice president and chief operating officer, however, denied that Cojuangco was involved in the deal despite the election of two close business associates, Ramon Ang and Lorenzo Tan, to the CCI board. "At this point, he's not an investor. That has been mentioned several times. Mr. Cojuangco is not an investor in Centennial. The association has always been there due to the presence of Mr. Ramon Ang and Mr. Lorenzo Tan in the board," Cadiz said in a separate interview. According to Cadiz, Ang was elected as company chair and chief executive officer since he helped broker the deal between CCI and the group of strategic investors. "Mr. Ang was elected because we felt that he can add value in getting the strategic investors to the company. Tan was elected because the shareholders feel that he can add value to the company," Cadiz said.