Euro-Med Laboratories Phil., Inc.

January 26, 1999 PSE CIRCULAR FOR BROKERS NO. 125-99 SUBJECT : Euro-Med Laboratories Phil., Inc. This is with reference to Circular for Brokers No. 072-99 dated January 15, 1999 with regard to Euro-Med Laboratories Phil., Inc.'s ("EURO") Board approval of the purchase of the intravenous solutions business in the Philippines of Abbott Laboratories (Philippines). To further clarify said transaction and in response to the Exchange's request for additional information, EURO informed the Exchange of the following: cdlex 1. Reason/purpose of the acquisition "Certain intravenous solutions can only be packaged in glass, the acquisition will expand our product line and market share. 2. Details of the acquisition a. agreement(s) pertaining to the transaction and the terms and conditions specified therein The purchase covers the intravenous solutions business in the Philippines of Abbott Laboratories Philippines, (Abbott). The purchase includes the formulations, technology, production and quality assurance equipment. The land and building are excluded from the purchase. The brand names of Abbott are excluded from the purchase. The scheduled closing date is June 30, 1999. After June 30, 1999, Euro-Med Laboratories Phil., Inc., (Euro-Med) will dismantle and transfer the production and quality assurance equipment to Euro-Med's Cavite plant. While the equipment is being transferred, Abbott will appoint Euro-Med for the period July 1, 1999 to December 31, 1999 as its exclusive distributor in the Philippines of Abbott branded products covered by the purchase agreement. The purchased equipment is expected to commence production with Euro-Med labels in the fourth quarter of 1999. Neither Abbott nor Euro-Med shall issue any press release or make any public statement on the subject matter hereof at any time without the prior written approval of the other party. . . b. the acquiring price and the settlement method of the transaction Payment in Philippine Pesos on the closing date June 30, 1999. 3. Initial and long-run effects of the transaction on EURO's operations and management The transaction is expected to contribute to Euro-Med's 1999 and future profitability. 4. Background information of Abbott Laboratories (Philippines) Abbott is a respected multinational corporation with worldwide sales of pharmaceutical, nutritional, hospital, diagnostics, chemical and agricultural products. . . ." (SGD.) JOSE LUIS U. YULO, JR. President and CEO