Philippine Stock Exchange

February 16, 1998 PSE CIRCULAR FOR BROKERS NO. 088-98 February 16, 1998 PHILIPPINE STOCK EXCHANGE Tektite Building, Ortigas Centre Pasig City Gentlemen : This refers to your letter dated February 12, 1998 regarding the article entitled "Ayala Group posts P6.3B net income" published in the February 10, 1998 issued of BusinessWorld. In connection therewith, please be informed that we cannot confirm veracity of the said article, because at this time, our year-end financial figures are still incomplete, and we are still in the process of consolidating our financial report with those of our subsidiaries and affiliates. We believe that BusinessWorld may have lifted portions of the presentation of Ayala Corporation's estimated and unaudited 1997 year-end financial highlights, in the ING Barings Asian Conference last January 22, 1998 at the Shangri-La Hotel. (Attached please find a copy of the disclosure made to the SEC and PSE in relations thereto). However, please be informed that Ayala Corporation did not authorize the publication of said presentation, nor conveyed to the participants of the conference that the financial figures were final and audited. We hope that we have clarified your questions. Please call us for further inquiries or clarification on the above matter. Very truly yours, (SGD.) RENATO O. MARZAN Assistant Corporate Secretary 22 January 1998 Securities & Exchange Commission Attn. : Director Linda A. Daoang Money Market Operations Dept. S.E.C. Building, EDSA Mandaluyong City Philippine Stock Exchange Attn. : Ms. Maria Isabel T. Garcia Head, Listing Department PSE Center, Exchange Road Ortigas Center, Pasig City Gentlemen : Please be advised that Ayala Corporation, in the course of its participation in the ING Barings Asian Conference today, 22 January 1998, at the Shangri-La Hotel, will be presenting its estimated and unaudited 1997 year-end financials, the highlights of which are as follows: Ayala Corporation estimates its 1997 consolidated income at P6.3 Billion. Ayala Land estimates its consolidated net income at P4.2 Billion The Bank of the Philippine Islands is expected to post P4.6 Billion. Pure Foods net income is expected at P150 Million. Globe Telecom is expected to post losses due to increased finance charges and capital expenditures as brought by the Company's aggressive infrastructure roll out program. Integrated Micro-Electronics, Inc. forecasts its income at P450 Million. As in the standard reporting, we will be providing you with a more detailed documentation once we have the audited financial statements. The above information is being made in compliance with the disclosure requirements of the Securities & Exchange Commission and the Philippine Stock Exchange. Thank you. Very truly yours, (SGD.) RENATO O. MARZAN Managing Director