PSE Circular for Brokers No. 094-99

January 20, 1999 PSE CIRCULAR FOR BROKERS NO. 094-99 January 19, 1999 PHILIPPINE STOCK EXCHANGE PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Disclosure Department Listings and Disclosure Group Gentlemen: On January 14, 1999, in order to establish a strategic alliance and undertake initiative efforts in liquefied petroleum gas (LPG)/industrial gas operations and associated businesses in the Philippines, PRYCE GASES, INC., the subsidiary of PRYCE CORPORATION entered into a MEMORANDUM OF UNDERSTANDING with MARUBENI CORPORATION of Tokyo, Japan. MARUBENI has substantial and diversified sources of LPG and has been marketing the product for years throughout Asia and elsewhere. MARUBENI, in consideration of being given a most favored company status agreed to contribute its considerable worldwide expertise in LPG acquisition and trading and to assure PRYCE a stable supply of LPG at very competitive prices. MARUBENI likewise subscribed to 13,500,000 common shares of PRYCE GASES, INC., at P4.60 per share for a total amount of P62,100,000.00 payable within 14 days after compliance with certain terms and conditions but not later than February 28, 1999. MARUBENI was also given the right to subscribe to up to 15% of the issued and outstanding stock of PRYCE GASES, INC., based on a pricing formula or as may be mutually agreed upon, depending on the dates of additional subscriptions. cdpr PRYCE and MARUBENI PETROLEUM CO., LTD. (MPC), a company wholly owned by Marubeni Corporation, also entered into a LONG-TERM agreement whereby MPC will supply 70% of PRYCE's LPG requirements which agreement is valid until December 31, 2003. This supply agreement however, provides a mechanism whereby PRYCE GASES, INC. may suspend the supply contract for any one-year period if a bona fide third party can provide lower LPG price for such period and MPC is unable to match it. For your information. Very truly yours, (SGD.) REY NATHANIEL C. IFURUNG Corporate Secretary