PSE Circular for Brokers No. 1128-99

May 19, 1999 PSE CIRCULAR FOR BROKERS NO. 1128-99 May 18, 1999 Disclosure Department Listings and Disclosure Group 4/F Philippine Stock Exchange Center PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Luisa Buenaventura Supervisor RE : Global Equities, Inc . (the "Company") Gentlemen : We wish to advise the Exchange of the following matters which were taken up in the meeting of the Board of Directors of the Company held on 17 May 1999: 1. The Board approved the sale of the 40% equity of the Company in Daklin International (BVI) Ltd. ("Daklin"), which represent One Million Four Hundred Twenty Thousand Nine Hundred Eighty Four (1,420,984) shares. The decision was arrived at in line with Management's present streamlining of the operations of the Company thereby shifting the concentration of the Company to its local companies. The 30% equity of the Company equivalent to One Million Sixty Five Thousand Seven Hundred Thirty Eight (1,065,738) shares was sold to Rich Creator Limited, a BVI company. Rich Creator Limited is associated with Ms. Wat Lai Hing the major shareholder of Daklin. The remaining 10% equity of the Company equivalent to Three Hundred Fifty Five Thousand Two Hundred Forty Six (355,246) shares was sold to Ms. Wat in her personal capacity. cdlex 2. The general economic or financial conditions, or the effect of the international conditions on the financial markets of the Republic of the Philippines has made it impracticable for the Board of Directors and The foregoing amendments to the DSOP and MSOP is subject to the approval by the Stockholders at the Annual Stockholder's Meeting on 30 June 1999 and the Commission Very truly yours, GLOBAL EQUITIES, INC. By: (SGD.) ARSENIO C. CABRERA, JR. Corporate Secretary HERRERA TEEHANKEE & FAYLONA LAW OFFICES Management to exercise their option to purchase GEI shares pursuant to GEI's Directors' Stock Option Plan ("DSOP") and Management Stock Option Plan ("MSOP"). In the meeting of the Board of Directors, the Board also approved the following amendments to the said DSOP and the MSOP: 2.1 Amendment of the price of the shares from One and 25/100 Pesos (P1.25) per share to One Peso (P1.00) per share; LibLex 2.2 Amendment change the manner of payment from full payment at the time of the exercise of the option to an initial payment of 25% of the total price of shares purchased with the balance being due and payable upon call by the Board of Directors; and 2.3 Amendment of the period within which the option may be exercised from three (3) years from approval to five (5) years from approval. The DSOP was approved by the Board of Directors and Stockholders on 16 October 1995, respectively, granting to the members of the Board of Directors the right to subscribe to a total of 2% of GEI's outstanding capital stock at any one time after the approval by the Securities and Exchange Commission (the "Commission") of GEI's increase of authorized capital stock to Two Billion Pesos (P2,000,000,000.00),at an offer price of equivalent to One and 25/100 (P1.25) per share, exercisable within a period of three(3) years from the date of approval of the DSOP by the Commission. GEI subsequently filed a Registration Statement ("SEC Form 8-1") relating to these DSOP shares on 29 April 1998. As of date, the Registration Statement covering the DSOP shares has not yet become effective and is still pending for approval with the Commission. cdll The MSOP, on the other hand, was approved by the Board of Directors and Stockholders on 16 October 1995 and 20 October 1995, respectively, granting to Trans Globe Management Services, Inc. or its assignee, or such other management company as may be engaged by GEI, the right to subscribe to a total of One Hundred Twenty Million Five Hundred Fifty Nine Thousand Three Hundred (120,559,300) shares at a price of One and 25/100 Pesos (1.25) per share. The full amount of the purchase price of the stocks shall be paid by the optionee upon availment of the stock option plan within a period of three (3) from the date of approval by the Commission of the MSOP. The MSOP was approved by the Commission on 19 December 1996. As of date, no one has availed of the MSOP.