PSE Circular for Brokers No. 1303-98

June 10, 1998 PSE CIRCULAR FOR BROKERS NO. 1303-98 DISCLOSURE DEPARTMENT LISTINGS & DISCLOSURE GROUP Philippine Stock Exchange 4th Floor, PSE Center Exchange Road, Ortigas Center Pasig City Attention: Mr . Reynold P . Ong Vice President Listing & Disclosure Gentlemen : We have the honor to inform you that the Board of Directors of La Tondea Distillers, Inc. (the "Corporation"), at the meeting held today, 10 June 1998, approved the proposal for the issuance by the Corporation of convertible preferred shares and the private placement of such shares with private equity investor(s). The aggregate issue value will be up to P1.2 Billion. The indicative terms are: Issue Price: Market price at issue date Number of Shares: Shall be determined after setting of Issue Price Conversion Option: Convertible at the option of the holder into common shares of the Corporation Final terms and conditions: The Board of Directors has authorized Management to negotiate and agree with the private investor(s) on the final terms and conditions. The Board also approved the proposal to amend the Corporation's Articles of Incorporation to provide for convertible preferred shares. The authorized capital stock of the Corporation will remain the same, but part of the authorized but unissued capital stock will be classified as convertible preferred shares. The amendment of the Articles will be submitted to the shareholders for approval at a special meeting scheduled for 16 July 1998. At the same meeting, the Corporation will also seek the waiver by the shareholders of their pre-emptive rights to the new issue of shares. This disclosure is being made in compliance with the requirements of the Philippine Stock Exchange. Very truly yours, (SGD.) BARBARA ANNE C. MIGALLOS Director/Corporate Secretary