Petron Corporation

January 19, 1999 PSE CIRCULAR FOR BROKERS NO. 089-99 SUBJECT : Petron Corporation Petron Corporation ("PCOR") clarified to the Exchange a news article published in the January 14, 1999 issue of Business World which reported that given the constitutional restriction on foreign ownership, the government will review Saudi Aramco's right of first refusal over the government's 40% stake in PCOR. PCOR, in its letter to the Exchange, explained that: ". . . neither the Petron Board of Directors nor Petron management is in receipt of any official communication from PNOC regarding the disposition of its shares in Petron. As far as Petron is concerned, there are no plans as of yet on when and how PNOC's shares will be governed by the Shareholders' Agreement executed between the parties. LexLib As to the reported constitutional limitation on foreign ownership, please be informed that the oil refining and distribution business of Petron is not subject to any constitutional restriction or limitation on the extent of foreign ownership therein . . ." For your information. (SGD.) JOSE LUIS U. YULO, JR. President and CEO