Good Turnout for RFM-SFI Share Swap

May 21, 1999 PSE CIRCULAR FOR BROKERS NO. 1153-99 May 20, 1999 NEWS RELEASE RFM CORPORATION GOOD TURNOUT FOR RFM-SFI SHARE SWAP RFM Corporation and Swift Foods, Inc. have concluded a successful share-swap program with about 85% of minority shareholdings swapped. This brought up to 96% RFM's ownership in Swift, coming from 75.8% ownership prior to the swap. Several SFI shareholders, Which owned around 164.8 million SFI shares, took up the offer to exchange their SFI common shares for RFM share, at a ratio of 3 SFI shares for one RFM share. This also effectively increases the shareholders base of RFM. RFM President and CEO Jose A. Concepcion III said, "The turnout indicates that majority of the Swift shareholders favored the swap to RFM shares." Concepcion attributed the success of the share-swap program to several factors. It was seen as a generous offer with the RFM share market price higher than that of the three Swift shares being swapped. At the 3:1 ratio, the implied price of each SFI share was also higher than its Net Book Value (NBV). Moreover, the swap to RFM shares was seen as a move into a more actively-traded stock of a more diversified food and beverage company which RFM represents. The share-swap program was offered to all Swift shareholders as of February 26, 1999. and ran from March 15 up to April 12 of the same year. With the conclusion of the offer period, the company shall proceed with the execution of the shares swap at the Philippine Stock Exchange on May 21, 1999. Shareholders who did not avail of the program remain as shareholders of Swift.