Medco Holdings, Inc.

May 18, 1998 PSE CIRCULAR FOR BROKERS NO. 1056-98 SUBJECT : Medco Holdings, Inc . Medco Holdings, Inc. ("MED") clarified to the Exchange, in a letter dated May 15, 1998, a news article published in the May 14, 1998 issue of the Manila Bulletin regarding its increase in authorized capital stock. MED in said letter explained that: "We would like to point out that only director and stockholder approvals have been obtained for the increase in the authorized capital stock of the Company to P2 billion from P700 million, and that no applications or filings have been made with the Securities and Exchange Commission. Stockholder approval for the increase in authorized capital stock was obtained during the 1997 annual stockholders' meeting. This fact was reported by the Company in its annual report in SEC Form 11-A for fiscal year 1997 which was most likely used as the basis of the newspaper article." For your information. (SGD.) REYNOLD P. ONG Vice-President, Listings and Disclosure Group