PSE Circular for Brokers No. 076-99

January 19, 1999 PSE CIRCULAR FOR BROKERS NO. 076-99 January 18, 1999 THE PHILIPPINE STOCK EXCHANGE Exchange Road, Ortigas Center Pasig City Attention: Mr . Reynaldo P . Ong Vice President-Listing and Disclosure Group Gentlemen : We are pleased to inform you that on January 18, 1999, William Gothong and Aboitiz Incorporated (WG&A) and Lorenzo Shipping Corporation (LSC) entered into a "Service Alliance" agreement with the objectives of reducing operating cost, improving vessel utilization and enhancing quality of services in the ports covered in the agreement. llcd The agreement involves the deployment by Lorenzo Shipping Corporation of their container vessel Lorcon Davao on the Manila-Davao-General Santos-Manila route and WG&A, Inc. buys a fixed number of container slots of the said vessel on a per voyage (round trip) basis. The "Service Alliance" agreement is valid for one (1) year effective January 28, 1999, subject to renewal. Both companies are looking at other areas of cooperation including vessel rotations where they can combine their resources and achieve synergy. This service alliance is a step closer to the goal of both companies of providing High Value Service . Lorenzo Shipping Corporation is a publicly-listed fully-containerized cargo shipping company calling Manila and major ports in the Visayas and Mindanao. WG&A is an ISM-certified domestic shipping line providing passenger ferry and container services covering 22 ports of call. Very truly yours, (SGD.) JESUS N. ALCORDO President and Chief Executive Officer