PSE Circular for Brokers No. 1307-98

June 9, 1998 PSE CIRCULAR FOR BROKERS NO. 1307-98 The Philippine Stock Exchange Philippine Stock Exchange Center Exchange Road, Pasig City Attention: Mr . Reynold P . Ong Vice President Listings and Disclosure Group Gentlemen : Pursuant to you request for a clarification on the article in the June 4, 1998 issue of the Manila Times captioned "DMCI selling P3-B equipment and other assets to cut debt", wish to state that the answers to the said interview was taken out of context. While it is true that the Company has identified approximately P3 Billion worth of assets for disposal, it was erroneous to assume that the proceeds of which is intended primarily to retire debt. On the contrary this is just one of the schemes eyed by the Company to raise internally generated cash to meet current and future cash requirements and consolidate our investments without the need to borrow and, accordingly, to enhance the overall liquidity position of the group as we head for a construction slowdown brought about by the regional crisis during the last half of 1997. To this end, we felt that no disclosure was needed for the things discussed during the interview due to the fact that this was just a plan of action and, if ever consummated, the transaction will be done in the normal course of business. We hope that this reply is will enlighten your goodselves and, accordingly, put things in its proper perspective. Warm Regards. Very truly yours, (SGD.) HERBERT M. CONSUNJI Chief Financial Officer