Araneta Properties, Inc.

February 17, 1998 PSE CIRCULAR FOR BROKERS NO. 147-98 February 11, 1998 PHILIPPINE STOCK EXCHANGE PSE Center, Exchange Road Ortigas Center, Pasig City Attention : Compliance Department RE : Araneta Properties, Inc . Gentlemen : In connection with the application for listing of the 1,404,932,201 shares of the Araneta Group, we are furnishing you information on the corporate background of the companies parties to the swap. 1. CARMEL DEVELOPMENT, INC. (formerly Carmel Farms, Inc.) Nature of Business: Realty Capital Structure Authorized P12,000,000.00 Issued and Outstanding 4,100,000.00 Paid up 2,150,000.00 Par Value P100.00/share Ownership: Majority Owned by the Aranetas Stockholders: Gregorio Araneta, Inc., Vicente Araneta, Luis Ma. Araneta, Margarita A. Singh, Francisco Araneta, Gregorio Araneta III, Lourdes Legarda, Patricia Araneta, Elvira A. Buencamino, Venacio Tapia, Danilo Santiago Profit/loss for the past 3 years: non-operating 2. GAMMA PROPERTIES, INC. Nature of Business: Realty Capital Structure Authorized P1,000,000.00 Issued and Outstanding 250,000.00 Paid up 250,000.00 Par Value P10.00/share Ownership: Majority Owned by the Aranetas Stockholders: Gregorio Araneta III, Irene M. Araneta, Rene B. Azurin, Luis Araneta, Alfonso Araneta, Florita F. Lucena Profit/loss for the past 3 years: non-operating 3. Olongapo Mabuhay Express Corporation Nature of Business: Freight and Cargo Forwarding and Hauling Capital Structure Authorized P100,000.00 Issued and Outstanding 25,000.00 Paid up 25,000.00 Par Value P100.00/share Ownership: Majority Owned by LBC Properties, and the Araneta family Profit/loss for past 3 years: non-operating 4. LBC Development Bank Nature of Business: Private Development Bank Capital Structure Authorized P250,000,000.00 Issued and Outstanding 169,000,000.00 Paid up 169,000,000.00 Par Value P100.00/share Ownership: Majority Owned by LBC Development Corporation Stockholders: LBC Development Corporation, Gregorio Araneta III, Philip L. Chiongbian, Constantino Manahan, Jr., Aderito Z. Yujuico, Rene B. Azurin, Irene M. Araneta, Patricia Araneta, Joaquin Buenaflor, Virgilio del Rosario, Joaquin Garcia, and Carlos R. Araneta. Profit/loss for the past 3 years: 1994: P663,919.00 1995: 4,846,088.00 1996: 10,489,761.00 If your have further queries in this connection, please let us know. Very truly yours, (SGD.) ATTY. ROBERT A. C. SISON Assistant Corp . Secretary