PSE Circular for Brokers No. 1034-99

May 11, 1999 PSE CIRCULAR FOR BROKERS NO. 1034-99 May 10, 1999 MS. GRACE B. DE GUIA Assistant Manager Disclosure Department PHILIPPINE STOCK EXCHANGE, INC . PSE Center, Exchange Road Ortigas Center, Pasig City Dear Ms. De Guia: In connection with the news item that appeared in the Business World issue today, we would like to confirm that the First Quarter report of EEI, which is now being finalized for submission to the Stock Exchange Commission and Philippine Stock Exchange on or before the May 15 deadline, will show a net profit of only P3 million. Construction projects expected for bidding, or for award, during the 1st Quarter, have been delayed. EEI however will bid for the projects mentioned in the news Item, such as IMPSA, the Ilijan Power Plant, and Malampaya on-shore facilities, and hopes to achieve favorable results. LexLib The Company is presently negotiating a number of change orders in on-going projects. Approval of these change orders will substantially improve its financial performance. EEI is also negotiating for sale of Its equity with Subic Power Corporation but. is not yet in a position to confirm the sale and the expected profits from the transaction. The matter of preferred shares, which was also mentioned in the news item, will be taken up in this month's Board Meeting and Annual Stockholders' Meeting. Despite the temporary setback in the 1st Quarter, EEI expects to meet its revised forecast for the year. Very truly yours, (SGD.) FERDINAND G. VILLAFUERTE Sr . Vice President and Corporate Secretary