PSE Circular for Brokers No. 127-99

January 26, 1999 PSE CIRCULAR FOR BROKERS NO. 127-99 FILINVEST LAND MAINTAINS ITS CIBI "A" RATING, PAYS P900MM OF LTCP The Credit Information Bureau, Inc. (CIBI), a firm that evaluates the credit-worthiness of local firms, recently retained Filinvest Land, Inc. (FLI) rating of CIB "A", one of the highest ratings to be given to a property developer, in spite of the effects of the Asian crisis. Filinvest Land Inc. is one of the country's largest and most financially stable properly developers. As proof of this, Filinvest Land announced the retirement on January 21, 1999 of the first tranche of its long-term commercial paper with principal amounting to P900M. The company also announced that funds to pay off a similar amount of long-term commercial paper due to mature next month is ready and has been set aside. In a letter addressed to the Securities and Exchange Commission (SEC), CIBI cited the following factors behind the rating: Filinvest Land's 19971998 operating results show resiliency even amidst a slowdown in the property sector; an expected improvement in earnings coverage of interest charges and cash flow coverage of debt; the diversification of property development portfolio that will enhance the company's earning power in the long term; and Filinvest Land's moderate use of debt and its track record as a strong player in the housing sector. According to Mr. Efren Reyes, FLI Senior Vice President and Chief Financial Officer, this was made possible by the company's prudent financial management and sound financial discipline exercised before the onset of the current Asian crisis. "By pacing our development and conserving our cash reserves, we were able to realize a strong cash position", he said. He also added that it has been the company's policy to properly match its liabilities with the cash flow cycle of the business, a policy that proved to be judicious in the light of the regional currency crisis. The company sees encouraging signs of recovery in the property sector. This positive view, plus Filinvest Land's strong financial position has enabled the company to schedule the launch of several projects for 1999. The latest is the Prominence townhomes in Brentville International. Located in Mamplasan, Bian in Laguna, this high-end project is seen as the next global community in the growing southern area.