Compliance Monitoring Dept. — Listings Group

February 9, 1998 PSE CIRCULAR FOR BROKERS NO. 094-98 February 6, 1998 Compliance Monitoring Dept. Listings Group Philippine Stock Exchange, Inc. PSE Centre, Exchange Road Ortigas Center, Pasig City Attention : Mr . Jim Alabastro Compliance Analyst Gentlemen : This refers to your letter requiring a written disclosure of our end-1997 financial results following the publication of a news article today captioned "DMCI's profit drops 15.6% to P886M." We wish to inform you that the P886-M net income and P9.89-B revenues quoted in the article were our latest estimate of 1997 performance and do not, in any way, represent our actual financial results for the said period. This is primarily the reason why we did not find it necessary to make an official disclosure. Rest assured that we will comply with your full disclosure requirement upon completion of our 1997 financial results. We hope this puts the matter in its proper perspective. Very truly yours, (SGD.) ALONA QUIAMBAO Corporate Communications Officer ANNEX A The Manila Times, Feb-6-98, p . 19 Section B DMCI's profit drops 15 . 6% to P886 M DMCI HOLDINGS Inc. said its profit tumbled 15.6 percent last year, underscoring the difficulties the construction industry is facing because of soaring interest rates. The country largest construction company said its net income dropped to P886 million in 1997, compared with P1.05 billion in 1996. That was below the company's profit forecast of P1.33 billion. Revenue climbed 43 percent to P9.89 billion last year, while its expenses increased 60 percent to P8.61 billion. Prime lending rates average about 25 percent, about double the level year ago, prompting some real estate companies delay protects. Shares in DMCI gained P0.16 to P2.30 yesterday on the Philippine Stock Exchange. The stock has lost more than three-quarters of its value in less than a year. Bloomberg