EEI Reorganizes Machinery Division

January 25, 1999 PSE CIRCULAR FOR BROKERS NO. 114-99 EEI REORGANIZES MACHINERY DIVISION EEI Corporation announced today that its Machinery Division will be spun off into a separate, autonomous wholly owned subsidiary, Equipment Engineers, Incorporated effective February 16 this year. LLpr The company a publicly listed corporation and one of the country's leading construction companies reported that the spin off is part of a periodic strategic review process covering its operations and organization. "We believe that the transfer of our machinery and equipment sales to an autonomous business unit will improve our marketing and distribution capability and our client responsiveness," said EEI President and Chief Operating Officer, Mr. Rogelio M. Murga. He explained that under Equipment Engineers, Inc., machinery operations will have greater autonomy and authority over its operations and business results. The existing equipment and other assets of the Machinery Division, including most of its employees, will be absorbed by Equipment Engineers. He added that the reorganization will enable the division to gain greater business focus and enhance its ability to anticipate the needs of its customers who comprise the top manufacturing, mining, cement oil and petrochemical, power, water, property development, commercial and industrial corporations in the country, as well as various government agencies. EEI as exclusive distributor of a wide range of industrial, engineering, and construction equipment and systems manufactured by companies around the world through its Machinery Division. Murga expressed confidence that the reconstituted machinery sales operation will be able to enhance its value and contribution to EEI Corporation.