PSE Circular for Brokers No. 1064-98

May 16, 1998 PSE CIRCULAR FOR BROKERS NO. 1064-98 Philippine Stock Exchange, Inc. Ortigas Center, Pasig City, Metro Manila 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 developments within the PNCC: 1. PNCC signed a Memorandum of Understanding with Strategies Equities for Enterprise Development Capital, Incorporated (SEED Capital Inc.) for the preparation of a joint venture and/or a BOT proposal for the following projects: Sierra Madre Eastern Corridor Expressway Project (SMECEP); and Project XO composed of the following component, Project X, Metro Manila Expressway Project and Project O, the Laguna Bay Area Rapid Transit (LABART) Expressway. 2. PNCC signed a Memorandum of Understanding (MOU) with Mott MacDonald Unlimited for the development of a masterplan designed for the construction of a network of tollways in identified areas throughout the Philippines. A separate agreement from the MOU to cover services rendered for the preparation of plans and specification over the identified tollways shall be executed before the commencement of said service and whose compensation shall depend on the quantity and quality of efforts rendered as well as on the responsibilities involved thereby. 3. PNCC signed a Memorandum of Understanding with Kvaerner Corporate Development Ltd. and the Philippine Ports Authority for the financing, development, design, engineering, upgrading of at grade roads and construction of a four-lane elevated expressway commencing from the North Luzon Expressway up to and including the R-10 Road until Moriones Avenue and traversing the eastern perimeter of the North and South Harbors of the Port of Manila with a total length of 7-10 kilometers, being part and parcel of the DPWH Metro Manila Urban Expressway System Study (MMUESS). This is all for the present. We will promptly inform the Philippine Stock Exchange, Inc., through your good office, of developments within the corporation. LLpr Very truly yours, (SGD.) ROGELIO L. LUIS President and Chief Executive Officer