PSE Circular for Brokers No. 113-98

February 11, 1998 PSE CIRCULAR FOR BROKERS NO. 113-98 Press Release ABS-CBN Broadcasting Corporations Announces Formation of New International Production Unit, ABS-CBN Entertainment . Lines UP David Hasselhoff ABS-CBN Broadcasting Corporation announces the formation of a new subsidiary called ABS-CBN Entertainment. This entity is an offshoot of the highly successful international join venture between ABS-CBN Corporation, Star Cinema and Pacific Hollywood which, in 1997, produced GOODBYE AMERICA. The film starred Corin Nemec, Rae Dawn Chong, James Brolin and Michael York. Aside from well-received screenings in the Philippines, Goodbye America has been sold successfully to over 65 territories worldwide. In keeping with Star Cinema's tradition of successfully producing Filipino language films for international release, ABS-CBN Entertainment will concentrate on producing 2-3 English languages films per year, engage in television and other formats for international production by harnessing Filipino talents and exposing them to international viewers and markets. The current project for ABS-CBN Entertainment is "Legacy", a film starring David Hasselhoff, Donita Rose, Carin Nemec, Chin Chin Gutierrez, Douglas O'Keeffe and Rod Steiger. They are currently shooting on locations at the Old Manila area, Intramuros, and interior locations inside the Manila Hotel. Overseeing the production of this film is Michael Sellers, who produced Goodbye America. Sellers will be tasked to manage the development and production activities of the company and is charged with coming up with projects that will meet or exceed the success of Goodbye America in both the international market and the domestic Philippine market. "We think that with careful selection and development of quality programming, we can come up with 2-3 projects per year that will meet buyer expectations worldwide for quality international programming while still retaining a special appeal in the domestic market." The next project lined-up for ABS-CBN Entertainment is SAMAR, a unique historical film about a tragic and violent episode in the Philippine-American war at the turn of the century.