Facsimile Transmission

May 27, 1998 PSE CIRCULAR FOR BROKERS NO. 1166-98 Facsimile Transmission To : Philippine Stock Exchange From : Fe Elenita A. Austria Fax : (632) 636-0809 No. of pages : 2 Fax : (632) 812-0205 I refer to your fax message earlier today addressed to Atty. Helen De Leon-Manzano regarding a news article that appeared in the 26 May 1998 issue of the Manila Times. The said article related to an announcement made by Dharmala Holdings Limited (DHL) in Hong Kong. The directors of DHL have received an offer from a connected party Mr. Kenneth Lam, a director of DHL "to purchase the Company's entire interest in its financial services division". This division, operating in the main as Dharmala Capital (Asia) Limited, has a 40% interest in Dharmala Capital Corporation, Inc. Dharmala Philippines, Inc. (DPI) owns the remaining 60%. Dharmala Capital Corporation, Inc. holds some of DPI's interest in financial services in the Philippines such as Dharmala Securities Philippines, Inc. and Dharmala Wise Insurance Services, Inc. Thus any change in the ownership of the said 40% of Dharmala Capital Corporation, Inc. does not alter in any way the 60% held by DPI nor does the offer extend to any of DPI's other interest in financial services in the Philippines. If you have any further questions, would you kindly direct them to the writer or to the Company's President, Mr. Ian R. Johnson. A Copy of the announcement by DHL follows for your reference. Regards, (SGD.) FE ELENITA A. AUSTRIA Senior Vice-President The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. DHARMALA HOLDINGS LIMITED ( Incorporated in Bermuda with Limited Liability ) OFFER TO PURCHASE FINANCIAL SERVICES DIVISION Summary: Dharmala Holdings Limited (the "Company") has received an offer from a connected party to purchase to the Company's entire interest in its financial services division and such offer is currently being considered by the board of directors of the Company (the "Board"). The Board has received an offer from a connected party, as defined under the Listing Rules, to purchase the Company's entire interest in the businesses that comprise the financial services division of the Company in Hong Kong and the Philippines. The Board are currently considering the offer and will be appointing an investment bank to act as financial advisor in relation to the matter. Apart from the above, the Board confirms that there are no negotiations or agreements relating to intended acquisitions or realizations which are discloseable under paragraph 3 of the Listing Agreement, neither is the Board aware of any matter discloseable under the general obligations imposed by paragraph 2 of the Listing Agreement which may be of a price-sensitive nature. Made by the order of the Board, the directors of which individually and jointly accept responsibility for the accuracy of this statement. By Order of the board Bernard Paubot Group Managing Director Hong Kong, May 22nd, 1998