PSE Circular for Brokers No. 1136-98

May 25, 1998 PSE CIRCULAR FOR BROKERS NO. 1136-98 Disclosure Department Listing and Disclosure Group Philippine Stock Exchange 4th Floor, Philippine Stock Exchange Center PSE Center, Exchange Road Attention: Mr . Reynold P . Ong Vice President Listing and Disclosure Group Gentlemen : We have the honor to inform you that at their meeting held today, 25 May 1998, the Board of Directors of BACNOTAN CONSOLIDATED INDUSTRIES, INC. (the "Company") approved the transfer to a wholly-owned subsidiary to be incorporated its shares of stock in BACNOTAN CEMENT CORPORATION ("BCC"), HI CEMENT CORPORATION ("Hi Cement") and DAVAO UNION CEMENT CORPORATION ("DUCC") in exchange for shares of stock of such new corporation. The Board further authorized the taking of such steps as may be necessary or appropriate to cause ATLAS CEMENT CORPORATION ("Atlas Cement"), a subsidiary of the Company, to transfer its shares of stock in Hi Cement likewise in exchange for shares of stock of the new corporation. The cement assets of the Company are being consolidated in the new corporation pursuant to the decision of the Board to rationalize the corporate structure of the Company and to facilitate the possible entry of a strategic investor in the Company's cement business. This disclosure is made in compliance with the rules of the Philippine Stock Exchange. Very truly yours, (SGD.) JUAN J. DIAZ Corporate Secretary