PSE Circular for Brokers No. 1217-98

June 1, 1998 PSE CIRCULAR FOR BROKERS NO. 1217-98 June 1, 1998 Disclosure Department Listing and Disclosure Group Philippine Stock Exchange, Inc. (PSE) Philippine Stock Exchange Center Exchange Road, Ortigas Center Pasig, Metro Manila Attention: Disclosure Department Gentlemen/Mesdames : Pursuant to your fax message dated today, June 1, 1999 requesting for confirmation of a news article in a newspaper, we wish to inform you that there is no tax assessment on Petron by the BIR. We are not aware of a tax investigation on Petron as a result of its 1997 Income Tax Return and payment. We wish to assure your office that Petron has not been remiss in the payment of its tax obligations. In fact, for the past five years, Petron has paid a total of P78.8 billion in total taxes and duties to the national government. On the contrary, Petron has huge overdue receivables from various government agencies consisting of OPSF receivables and claims for duty drawback and tax credits. Very truly yours, (SGD.) LIBERADOR V. VILLEGAS Corporate Secretary