PSE Circular for Brokers No. 1480-99

June 23, 1999 PSE CIRCULAR FOR BROKERS NO. 1480-99 June 23, 1999 PHILIPPINE STOCK EXCHANGE, INC . Listings and Disclosure Group Phil. Stock Exchange Centre Exchange Road, Ortigas Center Pasig City Attention: Ms . Luisa W . Buenaventura Supervisor, Disclosure Dept . RE : Letter dated 23 June 1999 Gentlemen : We reply to your request for clarification/confirmation on the matter stated in your letter dated 23 June 1999. At this point in time, there are still no final or definite plans to merge the two (2) corporations. Negotiations between the two (2) corporations are still ongoing, but to repeat, no final plant have been reached, in the event that an agreement is reached by the parties, we shall be disclosing the same to the proper authorities. cdlex Corollary thereto, there is no basis for issuing a trading halt on our securities. We are requesting that this trading halt be lifted immediately as the same greatly prejudice us. Very truly yours, BW RESOURCES CORPORATION By: (SGD.) AGNES H. MARANAN Corporate Information Officer Bingo firm confirms merger negotiations Best World Gaming & Entertainment Corp. BWEG, the group which was awarded the exclusive rights to operate a computerized on-line bingo, has admitted it's holding merger talks with BW Resource Corp., a publicly-listed hotel and gaming firm. In a phone interview with The Times yesterday, Jose Salvador Rivera Jr. corporate secretary of both companies confirmed stock market rumors that the two companies are contemplating a possible merger. Its true "Nag-uusap kami; We're talking" he said Rivera asked about the report which have sent BW Resources share price soaring in recent weeks. "We're already in the advanced stage of negotiation for possible merger." It's the first time an official of either firm admitted they're holding discussions towards a possible merger. BW Resources, in a June 3, 1999 letter to the Philippine Stock Exchange (PSE) stressed that "there are no finalized or definite plans to merge the two corporations." Rivera said a merger will be good for both companies. "BWEG has the exclusive license to operate on-line bingo. BW Resource, for its part, is into properties. The merger will complement both companies since BW Resource could provide land or property for betting stations," he said. LLphil He revealed that the negotiations are now focused on which merger scheme would be the most effective. "It would depend upon the result of the negotiation," he said. "As soon as we strike an agreement, we will execute the merger may be done either through share swap or property-for share swap. Best World Gaming, which was organized only in 1998 by Dante Tan announced last week that its on-line bingo will be finally launched on Sunday June 27, at the Tutuban Center in Divisoria. The program will be aired nationwide through government-controlled People's Television-4. Regular telecast will start on Monday, Starting June 28, on-line bingo games will be played daily at the Central Draw Area or CDA at the Tutuban Center. The CDA connects on-line all Bingo Pilipino centers and terminals nationwide. BW Resource Corp., formerly Greater Asia Resource Corp. or Garco, is a publicly-listed firm with interests in hotel and gaming. The company's share price soared early this month on reports it is associated with Best World Gaming. BW Resource continues to be one of the most actively traded stocks in the exchange. In yesterday's session, BW Resource emerged a the fifth most actively traded stock with 9.554 million shares traded for a total of P171.07 million. Its share price closed 25 centavos higher to P18.