PSE Circular for Brokers No. 140-98

February 16, 1998 PSE CIRCULAR FOR BROKERS NO. 140-98 JOLLIBEE POSTS P8.87 B. SALES, P428 M. INCOME Jollibee Foods Corporation announced that it recorded consolidated revenues of P8.87 billion in 1997, up 27% from the P6.97 billion it registered the previous year. Consolidated income from operations increased 15% to P966.7 million from the P842.8 million the year before. Net income totaled P427.6 million an extraordinary foreign exchange charge of P385 million. The company's net income was 29% lower than the P602.2 million the previous year due principally to the foreign exchange charge booked on its dollar-denominated loan as a result of the peso devaluation. Excluding the currency charge and extraordinary gains, Jollibee's net income would have amounted P665 million during the period in review, 10.4% higher than its P602 million 1996 net earnings. Jollibee said that the company continued to post robust revenues due to the sustained growth in systemwide sales arising from its continuing expansion program and sales volume growth in existing stores for both the Jollibee and Greenwich concepts. The company continued to expand the Jollibee and Greenwich fastfood chains to meet the continued growth of the consumer market. It ended the year with 243 Jollibee branches and 121 Greenwich stores. It also increased its Mary's Chicken outlets to nine by yearend, and is set to roll out the concept to more areas in 1998. Jollibee's total assets-increased 23% to P5.39 billion at the end of 1997 from P4.37 billion in 1996. Stockholders' equity totaled P2.62 billion, up 12% from P2.33 billion the previous year. The company remains confident about its prospects for 1998 and beyond notwithstanding the economic difficulties. The company will continue implementing efficiency and productivity improvement and cost-savings programs in all aspects of its operations. It operates two commissaries located in Pasig for its Luzon requirements and in Mandaue City in Cebu for its Visayas and Mindanao requirements.