PSE Circular for Brokers No. 123-00

January 20, 2000 PSE CIRCULAR FOR BROKERS NO. 123-00 January 19, 2000 PHILIPPINE STOCK EXCHANGE Philippine Stock Exchange Center Exchange Road, Ortigas Center Pasig City Attention: Ms. Ma. Isabel T. Garcia Head, Compliance & Surveillance Department Gentlemen : This is to inform you of recent developments in our Iligan manufacturing plant particularly on the labor situation. The CBA negotiation which was started last October is on a deadlock The union has filed a notice of strike and theoretically they could have already done so yesterday but as of this writing, manufacturing activity is still normal. llcd We have prepared for this possibility and our liquid caustic soda inventory has been beefed up to more than 3 months sales equivalent and these are all in tanks located outside Iligan (Batangas, Davao, Cebu, etc.) and depot personnel are not under union jurisdiction. Also our imported material can freely come in through our BBTI depot. If ever there is a strike, we do not expect it to last long because as experienced in the past, the chlorine deliveries to MWSS makes it a national concern, the Secretary of Labor assumed jurisdiction and resolved the conflict. Very truly yours, (SGD.) DIOSDADO T. DE LA CRUZ Vice-President, Finance