Global Equities, Inc.

June 11, 1999 PSE CIRCULAR FOR BROKERS NO. 1380-99 SUBJECT : Global Equities, Inc . This is with reference to Circular for Brokers No. 1128-99 dated May 19, 1999, pertaining to Global Equities, Inc.'s ("GEI") sale of its 40% equity in Daklin International (BVI) Ltd. ("Daklin"). In reply to the Exchange's request for additional information on the said transaction, GEI, in a letter dated June 8, 1999, stated that: ". . . The 40% equity of the Company in Daklin was sold on cash basis to Rich Creator Ltd. and Ms. Wat Lai Hing for the sum of One Million Four Hundred Fifty Two Thousand Five Hundred and 39/100 Dollars (US$1,452,500.39) or the sum of Fifty Five Million One Hundred Ninety Five Thousand Fourteen and 82/100 Pesos (P55,195,014.82), at the conversion rate of US$1.00 to P38.00. prLL The Company was constrained to dispose of its investment in Daklin due to the decision of its major partner, Ms. Wat Lai Hing to sell her 60% equity in Daklin to a high net worth individual based in the People's Republic of China (hereinafter referred to as the "Buyer"). While the Company tried to match the bid of the Buyer of Ms. Wat's shares in Daklin, Ms. Wat imposed an additional condition that the Company should also have to assume Ms. Wat's personal and secured guarantees which are approximately HK$83.5 Million. In view of the depressed market for Daklin's electronic products and the fact that the operations are based in PROC, Management deemed it proper to dispose of the investment and take a loss rather than deal with new personalities in Daklin. Rich Creator Ltd. was the corporate' vehicle utilized by the Buyer in acquiring the Company's shares in Daklin. The cost of the Daklin investment is booked at One Hundred Eighty Five Million Eight Hundred Fifty Two Thousand Four Hundred Seventy Nine and 54/100 Pesos (P185,852,479.54). The company therefore incurred a loss of One Hundred Thirty Million Six Hundred Fifty Seven Thousand Four Hundred Sixty Seven Pesos (P130,657,467). Please note however that in the 1998 Audited Financial Statements of the Company, a provision for probable losses in the Daklin investment was allotted in the amount of One Hundred Thirty Five Million One Hundred Eighty Five Thousand Eight Hundred Twenty Four Pesos (P135,185,824.00) (excluding the equity in net earnings of P37,974,602.00).. . ." Furthermore, GEI furnished the Exchange a copy of Daklin's Audited Financial Statements for the years 1996, 1997 and 1998. A copy of the said documents is available for reference at the PSE Library and PSE-Plaza Administration Office. LibLex For your information. (SGD.) JOSE LUIS U. YULO, JR. President and CEO