PSE Circular for Brokers No. 077-99

January 19, 1999 PSE CIRCULAR FOR BROKERS NO. 077-99 January 18, 1999 THE PHILIPPINE STOCK EXCHANGE Exchange Road, Ortigas Center Pasig City Attention: Mr . Reynold P . Ong Vice President Listing and Disclosure Group Gentlemen : We are pleased to inform you that on 18 January 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. 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 step closer to the goal of both companies of providing High Value Service. WG&A is a domestic shipping line providing passenger ferry and container services covering 22 ports of call. Lorenzo Shipping Corporation is a publicly listed and the biggest fully containerized cargo shipping company calling Manila and covering all major ports in the Visayas and Mindanao Very truly yours, (SGD.) CAPT. ROMEO L. MALIG President