Benpres enhances value with strategic moves

June 8, 1999 PSE CIRCULAR FOR BROKERS NO. 1348-99 BENPRES HOLDINGS CORPORATION News Release Issue Date: June 7, 1999 Reference: C. Sison Telephone: 633-3520 Benpres enhances value with strategic moves Benpres Holdings Corp. expects better profits this year, on the back of strategic value-enhancing measures. The Company will book a significant one-time gain from the sale of its stake in PCIBank. The proceeds of the sale will be used primarily to pare down debt. Together with the continued robust performance of flagship ABS-CBN Broadcasting Corp., the programmed debt reduction will translate into improved income and a stronger balance sheet. At today's annual meeting, Benpres chief operating officer J. Xavier B. Gonzales told shareholders the Company will "seize opportunities and face up to challenges" in the sectors where it has investments. For broadcasting and cable, Mr. Gonzales said ABS-CBN should be able to "maintain its market dominance, leverage its cost per rating advantage and sustain the positive contribution of subsidiaries" while SkyCable will continue consolidation to achieve nationwide dominance and strive to lower programming costs. In telecommunications, BayanTel is expected to sustain the volume and revenue growth as well as capitalize on its dual nationwide backbone. BayanTel has its own SDH (Synchronous Digital Hierarchy) network and holds majority interest in Telicphil (Telecommunications Infrastructure Corporation of the Philippines), operator of the US$70-million NDTN (National Digital Transmission Network). The fully digital NDTN has a total transmission route distance of 2,762 kilometers, spanning from Cuyapo, Isabela in the north down to Davao in the south, and is composed of three segments: microwave radio, submarine fiber optic and land cable portions. In power and energy, Benpres intends to realize shareholder value by choosing a strategic partner for its power generation holdings and working for a level playing field as far as the provisions of the Omnibus Power Bill are concerned. For its water utility concern, Mr. Gonzales said, "Maynilad is implementing a change management process toward a customer-driven mindset and a commercial orientation." To achieve efficiency, Maynilad will focus on its core distribution competencies to generate more revenues and reduce non-revenue water. It will also undergo rightsizing to maximize resources. In infrastructure, Manila North Tollways Corp. is implementing its project to meet the target opening date of June 2001. In property development, Rockwell should sustain sales of 5 to 7 units per month, and is currency rolling out its shopping mall component set for completion late next year. LLjur Mr. Gonzales stressed Benpres will remain committed to industries that will provide basic services to Filipinos worldwide.