PSE Circular for Brokers No. 1096-99

May 14, 1999 PSE CIRCULAR FOR BROKERS NO. 1096-99 PHILIPPINE STOCK EXCHANGE PSE Centre, Exchange Road Pasig, Metro Manila Attention: Disclosure Department RE : Music Corporation Disclosure Statement 990513 Gentlemen : We advise that Mr. Stefan J. Stas, former President of the Corporation, has filed a civil action with the Superior Court of New Jersey, Chancery Division, Morris County under Docket No. MRS-C-101-99 against the Corporation by way of an ex parte Order to show cause without notice to the Corporation, for injunctive relief. We understand that essentially Mr. Stas seeks (a) recovery of his salary for the unexpired portion of his employment contract, (b) to restrain enforcement of certain restrictive covenants of his employment contract, and (c) to prevent MUSIC from immediately selling or disposing of his stock and stock options to repay his outstanding debts to MUSIC. The motion for injunctive relief will be heard on 01 June 1999. MUSIC has twenty (20) days from receipt of the verified complaint to file their responsive pleadings. We have not been furnished a copy of the verified complaint and will inquire from MUSIC's U.S. counsel if the same has been received. We received the above information from MUSIC's counsel today and will update you of further developments in due course. llcd If you should have any question, please call us. Very truly yours, (SGD.) JIMMY S. SOO