PSE Circular for Brokers No. 1023-98

May 13, 1998 PSE CIRCULAR FOR BROKERS NO. 1023-98 May 6, 1998 ATTY . MANUEL LOPEZ Philippine Stock Exchange, Inc. Ortigas Center Pasig City Dear Sir : In compliance with the requirement on corporate disclosure, we respectfully inform the Philippine Stock Exchange, Inc. through your good office, of the following development within PNCC: 1. The Philippine National Construction Corporation recently entered into a Joint Venture Agreement with the IREKA Group composed of the following companies: IREKA Construction Berhad of Malaysia, J.E. Manalo Incorporated and EEI Corporation for the design, construction, upgrading, operation and maintenance after completion of elevated expressway covering the corridor along Ortigas Avenue Extension from the junction of E. Rodriguez Jr. Avenue to the C-6 junction in Antipolo. This is all for the present. We will promptly inform the Philippine Stock Exchange, Inc., through your good office, of developments within corporation. Very truly yours, (SGD.) ROGELIO L. LUIS President and Executive Officer SM Prime posts remarkable 33% net income growth SM Prime Holdings, Inc., the Philippines' leading shopping mall chain, bucks odds once more as its posts a 33% net income growth to P661.2 million on revenues of P1,245.9 million in the first quarter of 1998. This growth from last year's net income of P497.3 million defies the prevailing regional economic difficulties and currency woes which started in July 1997. Revenues of the first quarter of 1998 increased by 26.2% from last year's P987.3 million. The strong same-store sales in the five SM supermalls SM City North Edsa, SM Centerpoint, SM Megamall, SM Cebu, and SM Southmall and the hefty additional sales in the two newly opened SM malls accounted for this performance. The latest malls, SM City-Bacoor in Cavite and SM City-Farview in Quezon City, opened in July and October 1997, respectively. Both are not 85% lease-awarded, a fast take-up rate, even in the SM experience. SM Prime observes that shoppers who have Overseas Filipino Workers (OFWs) in their families now have much greater purchasing power in their hands due to the higher peso equivalence of OFWs' dollars remittances. Known to offer the whole spectrum of shoppers the full range of merchandise, services, and dining, amusement and entertainment facilities, the SM malls are also reputed for their value-for-money philosophy. The popular SM malls continue to draw huge, and growing, crowds daily and even more so on weekends and holidays. SM Prime is proceeding steadily with its plans as part of its strategic moves as it seizes opportunities in the face of the Asian crisis. Construction is going full blast for SM City-Iloilo and SM City-Manila, which will have a combined gross floor area of about 270,000 square meters. In addition, two other malls are on the drawing board. Eight other properties are still held in SM Prime's land bank nationwide for mall development purposes. SM Prime continues to attract investors and fund managers due to its consistent growth and reliable market performance.