PSE Circular for Brokers No. 1158-98

May 27, 1998 PSE CIRCULAR FOR BROKERS NO. 1158-98 Disclosure Department Listing and Disclosure Group Philippine Stock Exchange, Inc. (PSE) Philippine Stock Exchange Center Exchange Road, Ortigas Center Pasig, Metro Manila Gentlemen: This is related to Petron's disclosure made yesterday, May 26, 1998 with respect to the submission of the results of the strike vote by Bataan Refiner's Union of the Philippines (BRUP), the collective bargaining agent of the rank and file employees at Petron's Bataan Refinery. BRUP agreed yesterday afternoon, to withdraw its Notice of Strike during the prevertive mediation conducted by the National Conciliation and Mediation Board (NCMB) of Region III of the Department of Labor and Employment (DOLE). Petron Management and the officers of BRUP agreed, upon the recommendation of the Director of NCMB, to submit to the jurisdiction of the DOLE Secretary the resolution of two issues in the labor dispute, namely: 1. Implementation of the Wage Rationalization Scheme by the Management upon granting of the right merit increase/upon granting of confirmation increase to newly regularize employees; and 2. Revision of shifting schedule. Petron and BRUP also agreed to allow the DOLE Secretary to assume jurisdiction over the labor dispute. They also requested the office of the DOLE Secretary to resolve the labor dispute within thirty (30) days from submission of the respective position paper as may be ordered by the Secretary. As a result, the parties agreed not only to withdraw the notice of strike but also to meet and to submit the labor dispute to the Dole Secretary for early resolution of the case. Very truly yours, (SGD.) LIBERADOR V. VILLEGAS Corporate Secretary