Kepphil Shipyard, Inc.

July 1, 1998 PSE CIRCULAR FOR BROKERS NO. 1493-98 SUBJECT : Kepphil Shipyard, Inc . Further to Circular No. 1099-98 pertaining to Kepphil Shipyard, Inc.'s ("KSI") participation in the corporate restructuring of the Keppel Group of Companies, KSI informed the Exchange that the stockholders, in their Annual Meeting, approved the following matters: 1. Acquisition by KSI of Cebu Shipyard & Engineering Works, Inc.'s ("CSE") shareholdings in Keppel Cebu Shipyard, Inc. ("KCSI") in exchange for the issuance by KSI of its common shares CSE will transfer 298.5 million worth of its KCSI shares to KSI. In exchange, KSI will issue t o CSE out of its authorized capital stock, 298.5 million worth of common shares (KSI shares) and the issuance thereof shall be coursed through the stock exchange. The ratio for said share-for-share swap is at 1:1. 2. Amendment of the Articles of Incorporation of KSI in respect to Article 1 to change the company name of KSI to Keppel Philippines Marine, Inc. LexLib The change in the corporate name are in line with the corporate restructuring of the Keppel Group of Companies. Keppel Philippines Marine, Inc. shall involve all marine-related activities of the Keppel Philippine Group of Companies. Any previous resolution relating to the change in name is deemed superseded. 3. Declaration of Stock Dividend 6% stock dividend declaration to stockholders of record as of 22 June 1998. For your information. (SGD.) REYNOLD P. ONG Vice-President, Listings and Disclosure Group