PSE Circular for Brokers No. 1119-99

May 18, 1999 PSE CIRCULAR FOR BROKERS NO. 1119-99 May 17, 1999 ATI posts substantial gains in 3rd quarter; buys AASI shares Manila South Harbor operator Asian Terminals Inc. (ATI) posted net earnings of P55 Million for the quarter which exceeded the forecast by 83%. Gross Revenues for the quarter, and year to date, are also better than last year and the current year's forecast. Contributing substantially to this performance is the Mariveles Grain Terminal which handled 382,383 metric tons of grains which was 21% better compared to the similar quarter last year. Over in Calamba, the Inland Clearance Depot (ICD) also boosted its revenues by taking on new customers among others, the Jollibee food chains and Ford Motors Company. During the quarter, ATI also obtained approval from the Securities & Exchange Commission to increase its authorized capital stock from P1.2B to P4B. This was to enlarge the capital structure in anticipation of expansion plans that may materialize in the near and medium terms. Soon after, a successful Pl Billion offering was conducted in March and fully subscribed and paid for. The proceeds of the offer were subsequently used to liquidate about Pl Billion worth of existing short term loans. With this move, ATI in effect will bring down its financing costs very substantially and therefore improve its profitability and prepare to provide for future financing for forthcoming new projects. Even with the gains already achieved in conjunction with the improving economic conditions, the Company has continued to strongly pursue its revenue enhancing and cost containment programs Costs therefore increase over last year's figures by less than 5%. ATI looks forward to a continued improving marketplace. It has bought an additional 15% share in the ownership of Aries Arrastre, the Batangas port operator. It now holds 95% ownership. prLL To further improve its cash balance, ATI also sold its remaining 5% involvement in Terminales Rio de Plata, operator of an Argentine port for about $5 Million.