Fortune Cement Corporation

July 2, 1998 PSE CIRCULAR FOR BROKERS NO. 1502-98 July 1, 1998 Philippine Stock Exchange Tektite Tower, Exchange Road Ortigas Complex, Pasig City Metro Manila Attention: Disclosure Department Listing Groups RE : Fortune Cement Corporation Gentlemen : Please be advised that at the meeting of the Board of Directors of FORTUNE CEMENT CORPORATION (the "Corporation") held on July 1, 1998, the Board of Directors of the Corporation approved the following: 1. the application of the Corporation for a loan of One Billion Four Hundred Eleven Million One Hundred Ninety-Four Thousand One Hundred Nine Pesos (P1,411,194,109.00) from Far East Cement Corporation and SM Investment Corporation (the 'Investors') under such terms and conditions as may be agreed upon by the parties; 2. the issuance to the Investors of Peso denominated transferable convertible notes in the amount of P1,411,194,109.00 in consideration of the said loan; and cdt 3. the authority of the Chairman of the Board, Mr. Henry Sy, Sr. or Executive Vice-President, Mr. Henry T. Sy, Jr., to sign, execute, and deliver the loan agreement, the convertible notes and such other documents as may be necessary to implement the issuance to the Investors of the aforesaid Peso denominated transferable convertible notes in the amount of P1,411,194,109.00. Very truly yours, (SGD.) EMMANUEL C. PARAS Corporate Secretary FORTUNE CEMENT CORPORATION