PSE Circular for Brokers No. 1505-99

June 25, 1999 PSE CIRCULAR FOR BROKERS NO. 1505-99 PRESS RELEASE 24 June 1999 ICTSI concludes private placement of IIHC International Container Terminal Services, Inc. (ICTSI) finalized and closed yesterday the sale of a portion of its international subsidiary to two institutional investors. ICTSI sold 29 per cent of ICTSI International Holdings Corp. (IIHC) to Capital International Global Emerging Markets Private Equity Fund, LP and JP Morgan International Capital Corp. for USD70 million or PhP2.6 billion. Capital will have a shareholding of approximately 17 per cent in IIHC, while JP Morgan will hold about 12 per cent. ICTSI will retain 71 per cent ownership of IIHC. LLjur Jardine Fleming Exchange Capital Group, Inc. acted as advisers to IIHC on this transaction. Proceeds of the sale will be used primarily by IIHC to acquire other ports. It will also be utilized to fund capital expenditures of existing terminals, and to retire ICTSI loans to IIHC. IIHC holds ICTSI's interests in its operations in Buenos Aires and Rosario, Argentina; Veracruz, Ensenada and Manzanillo, Mexico; Karachi, Pakistan; and Dammam, Kingdom of Saudi Arabia. Meanwhile, IIHC and Deutsche Bank AG are in the final stage of negotiations for a USD120 million or PhP4.5 billion credit facility for IIHC. The funds will also be used to acquire other ports overseas as IIHC pursues further expansion. In another development, ICTSI received today proceeds of the issuance from its PhP1 billion Long Term Commercial Paper (LTCP). Agreements were signed last Friday between ICTSI and AB Capital and Investment Corp., issue manager and lead underwriter; PCI Capital Corp. and First Metro Investment Corp., co-lead underwriters; and RCBC Capital Corp., Amalgamated Investment Bancorporation, Insular Investment and Trust Corp., Filinvest Capital, Inc., Philippine Commercial Capital, Inc. and Unicapital, Inc., participating underwriters. Proceeds of the LTCP will be used to retire ICTSI loans.