Carlota Mills 1.36 M Tons Cane for CY1998-99

May 28, 1999 PSE CIRCULAR FOR BROKERS NO. 1230-99 Carlota Mills 1 . 36 M Tons Cane for CY1998-99 Publicly-listed sugar manufacturer, Central Azucarera La Carlota recently reported a production of raw sugar of 1.95 million bags and refined sugar of 215,000 bags for its crop year ending April 31. CAC's raw sugar production declined slightly from 2.09 million Lkg bags in crop year 1997-98 on account of the adverse effects of the El Nio weather disturbance on the cane crop for the year in review. The Company milled a total of 1.36 million tons cane, up 13% from 1.21 million tons the previous year. LibLex However, because of the generally lower sugar content of the cane harvest, milling recoveries suffered despite the higher cane tonnage. Industry figures show that CAC's raw output, constituted 6% of total industry output for the recently concluded crop year. "CAC's improved production for CY 1998-99, achieved despite the negative industry situation is a reflection of the upgrading undertaken and productivity measures put in place by the Company for its milling facilities, during the crop year," said Mr. Miguel A. Gaspar, newly appointed CAC president. "Crop year 1998-99 marks the first full year that our state-of-the art John Thompson boiler has been in operation and production gains foretells of financial recovery in the short-term", he added. The 200-ton per hour John Thompson boiler was put on line last year at a cost of P400 million. Sugar refiner Central Azucarera Don Pedro has a 49% equity investment in CAC and is at present managing the company.