PSE Circular for Brokers No. 1480-A-99

June 23, 1999 PSE CIRCULAR FOR BROKERS NO. 1480-A-99 June 23, 1999 PHILIPPINE STOCK EXCHANGE, INC . 4th Floor, Philippine Stock Exchange Centre, Exchange Road, Ortigas Center, Pasig City Attention: Ms . Luisa W . Buenaventura Supervisor, Disclosure Dept . Gentlemen : Reference is made to the news article entitled "Lufthansa firm wins bid to buy PAL unit" which appeared in the June 23, 1999 issue of the Business World. The said news article is inaccurate and misleading. MacroAsia has not entered into a Joint Venture Agreement with Lufthansa Technik. It is however true that MacroAsia signed a Letter of Intent with Lufthansa Technik AG (LHT) for the establishment of a Joint Venture Company to do maintenance and engineering services on commercial aircrafts, engines and components not only to PAL but to other domestic, regional and international carriers as well, but as the document itself says, it is just a letter of intent. In fact, the letter of intent shall be followed by a due diligence process and the formal approval by shareholders of the companies. prLL We are attaching a copy of the text of our official announcement on the Letter of Intent signing last Saturday for your perusal. A cope thereof was likewise sent to the SEC. Should you have more queries to the foregoing, please feel free to call the undersigned. Very truly yours, (SGD.) MARIVIC T. MOYA Corporate Information Officer MACROASIA CORPORATION MacroAsia, Lufthansa Technik set joint venture MacroAsia Corporation and Lufthansa Technik AG of Germany have signed a letter of intent for the establishment of a joint-venture company that operate an aircraft maintenance and overhaul facility in the Philippines. It is the objective of the joint venture to make the facility in Manila a Center of Excellence for the repair and maintenance of aircrafts. LexLib Both were also able to sign a letter of intent with Philippine Airlines for long-term service of the fleets which will serve as a base load for the new company. The letter of intent firm up the desire of the three parties to explore ways of collaboration and partnership that will mutually benefit their respective interests and shareholders and the Philippines. The letters of intent shall be followed by a due diligence process and the formal approval by shareholders of the three companies. The new company will be an independent provider of aircraft maintenance services. It will offer maintenance, repair and overhaul services not only to PAL but to other domestic, regional and international carriers as well. MacroAsia, a publicly listed corporation, is a leading provider of aviation and logistics support. It has catering joint venture with Cathay Pacific in Cebu and Singapore Airport Terminal Services and Eurest International, Manila, MacroAsia also signed recently a joint venture agreement with Ogden Aviation, for provision of ramp and passenger handling services not only at the domestic airport but international as well. aisadc Hamburg-based Lufthansa Technik is an independent company within the Deutsche Lufthansa Group. As a legally independent company in the maintenance, repair and overhaul sector, Lufthansa Technik is in a position, on its own to acquire interest in other companies, to become a party to joint ventures or to establish other firms subject to the approval of its supervisory board. Lufthansa Technik counts a network of more than 10 independent companies and affiliates, plus over 100 maintenance stations all over the world, making it the biggest global player in the aircraft maintenance and engineering industry today. cdll