PSE Circular for Brokers No. 1155-99

May 21, 1999 PSE CIRCULAR FOR BROKERS NO. 1155-99 PHILIPPINE STOCK EXCHANGE, INC . PSE Center, Exchange Road Ortigas, Center Pasig City Attention: Ms . Eileen M . Lacorte/Ms . Grace B . De Guia Analyst/Assistant Manager Gentlemen : This in reply to your to facsimile transmission to Mr. Jaime E. Ysmael requesting for an update on the legal proceeding involving some parcels intended to form part of Ayala Land's Ayala Southvale project in Last Pias which disclosed to the Exchange as part of Ayala Land's SEC Form 11-A. For the benefit of the investing public, please be informed that Ayala Land received a ruling from the Supreme Court upholding the dismissal by the Court of Appeals of a case filed by Ayala Land for quieting of title involving a parcel which comprises approximately 2.5% of Ayala Land's total Land holdings, on the ground of forum shopping. The dismissal, which involves a procedures issue, does not go into the merits of the case and is not a definitive ruling on the validity of the titles of Ayala Land. The ruling, However, did not order the dismissal of Ayala Land's counterclaims or bar it from promoting its position on the validity and supremacy of its titles, which matter remains to be litigated. In any event, the ruling of the Supreme Court is not yet final but remains the subject of a motion for reconsideration which was filed by Ayala Land. LibLex We also note that a separate case filed by the same claimants against Ayala Land has been dismissed by the Court of Appeals on the ground of the claimants' own forum-shopping. We believe that this development will not, as it does not, materially affect soundness of the financial condition and the investments value of Ayala Land. Very truly yours, (SGD.) VINCENT Y. TAN Senior Vice President