PSE Circular for Brokers No. 129-98

February 13, 1998 PSE CIRCULAR FOR BROKERS NO. 129-98 HI reports P512M loss House of Investments, Inc. (HI) reported a net loss of P512 million (M) for 1997, based on unaudited financial statements. The company earned P252M in 1996. Stressing the effects of the recent Asia-wide currency turmoil on the company's businesses, officials cited three major reasons for the reversal: The decline in net earnings of subsidiaries from P318M in 1996 to P39M in 1997. This was due mainly to foreign exchange losses, increases in interest expenses, and lower-than-expected operating performance of subsidiaries in the consumer finance sector. HI's subsidiaries reported P297M in foreign exchange losses, P106M of which was HI's share. Provision for the write-down of P63M in the valuation of a non-controlling investment in a manufacturing company. The put-accretion on HI's outstanding dollar convertible bonds, which together with additional foreign exchange losses amounted to P460M. With the inclusion of this in the 1997 financial statements, the company expects not to incur any more put-accretion in 1998. HI's biggest subsidiary, EEI, has at present a healthy construction backlog of P7.39 billion (B), equivalent to 14 months production. HI's other subsidiaries include BA Savings Bank, First Malayan Leasing and Finance, Philrock, Philippine Fuji Xerox and HI-Eisai Pharmaceutical.