VMC Rehabilitation Plan

July 7, 1998 PSE CIRCULAR FOR BROKERS NO. 1554-98 July 7, 1998 PHILIPPINE STOCK EXCHANGE, INC . PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Luisa W . Buenaventura Analyst, Listings and Disclosure Group Ms . Janet J . Alcala Assistant, Listings and Disclosure Group RE : VMC Rehabilitation Plan Gentlemen : We write in behalf of the VMC Management Committee in relation to your fax message dated 06 July 1998 addressed to its Chairman, Mr. Isidro C. Alcantara, requiring the submission of a written disclosure on the matter of the news article captioned "SEC Approval of VMC Rehab Plan Expected Next Week" which was published in the 02 July 1998 issue of the Philippine Star. We confirm that the Securities and Exchange Commission has scheduled a conference on 08 July 1998 at 9:00 o'clock in the morning at the Office of Commissioner Danilo E. Concepcion, as shown in the attached Notice of Conference but we are not in the position to explain the purpose of said meeting as the Notice, per se , does not contain the purposed reason thereof. We are not thereof in a position to confirm or deny the matters contained in the news article which appeared in the Philippine Star. cdlex We trust you find our foregoing explanation in compliance with your requirements. Very truly yours, (SGD.) SANTIAGO T. GABIONZA, JR. (SGD.) MARILOU S. DUMADAG