PSE Circular for Brokers No. 1176-98

May 28, 1998 PSE CIRCULAR FOR BROKERS NO. 1176-98 Philippine Stock Exchange PSE Center, Exchange Road Ortigas Center, Pasig City Gentlemen : This has reference to your fax to our Corporate Secretary, Atty. Roberto San Jose, requesting for clarification and confirmation of a news article that came out in the May 26, 1998 issue of the Manila Times captioned "Alsons private offering to raise $50M - $100M". As reported to the shareholders during the annual meeting last May 25, 1998, we would like to confirm that there is indeed a plan by the Company to do a placement of secondary shares to raise money principally to enable the Company to pay down its debts. This placement was planned for late last year but due to the regional financial crisis and its subsequent effects on the capital market, the Company decided to postpone said placement. With the stabilization of the financial market in the Asian region and the apparent improvement of the equities market, we are considering pushing through with the planned placement towards the latter part of June or soon thereafter. Actual implementation will however greatly depend on the market situation at that time, the finalization of an agreement with the underwriter, and obtaining any required regulatory approvals. If the above pushes through, a major portion of the proceeds of such placement will be used by the selling shareholders to subscribe to new shares of the Company at the same price as the offering price. The Company will in turn use a substantial amount of the proceeds to pay down its debts and the operating requirements of the Company and its subsidiaries. We hope this clarifies subject news item. Thank you for your attention. Very truly yours, (SGD.) MELDIN AL. G. ROY Chief Financial Officer