PSE Circular for Brokers No. 117-99

January 25, 1999 PSE CIRCULAR FOR BROKERS NO. 117-99 January 22, 1999 Philippine Stock Exchange Disclosure Department Listings and Disclosure Group PSE Center, Exchange Road Pasig City Attention: Mr . Jose Emilio B . Jamir Gentlemen : For your information, RFM Corporation and Selecta Dairy Products Inc. have concluded a successful share-swap program with approximately 70% of minority shareholdings swapped. This brought up to 97% RFM's shareholding in Selecta. LLphil According to RFM President and CEO Jose A. Concepcion III, the turnout shows that majority of the Selecta shareholders favored the swap to RFM shares. This in effect increased the shareholder base of RFM Corporation by 53%. The success of the share-swap program could be attributed to several factors. It was seen as a generous offer with the RFM share market price higher than that of the two Selecta shares being swapped. It was also higher than the Initial Public Offering price and the Net Book Value (NBV) of Selecta shares. Also, the swap to RFM shares was seen as a shift to a more actively-traded stock of a more diversified food and beverage company, with prospective upside in the value of RFM shares. The share-swap program was offered to Selecta shareholders from December 1, 1998 to January 15, 1999. Shareholders who did not avail of the program remain as shareholders of Selecta. Thank you. Very truly yours, (SGD. ) ATTY. CRISTINA D. REYES