RFM Corporation

June 19, 1998 PSE CIRCULAR FOR BROKERS NO. 1375-98 SUBJECT : RFM Corporation RFM Corporation ("RFM") clarified to the Exchange, in a letter dated June 17, 1998, a news article published in the June 12, 1998 issue of the Philippine Star which reported that the company has sold a significant number of its holdings in Cosmos Bottling Corporation ("CBC"), representing 3.7% of CBC's outstanding capital stock, to a foreign fund manager for a total of P310.44 million. RFM in said letter explained that: "First of all, we wish to inform you that we did not release the article ourselves. Second, the sale of the shares was part of a plan we announced earlier to raise cash by selling some of our holdings in Cosmos shares and to improve the liquidity of the stock. We would also like to clarify that the block of shares of Cosmos that was sold to a number of foreign portfolio funds represents about 2.8% of the fully-diluted number of shares of Cosmos consisting of about 2.3Bn shares." For your information. (SGD.) REYNOLD P. ONG Vice-President, Listings and Disclosure Group