Philippine Realty & Holdings Corporation

July 9, 1998 PSE CIRCULAR FOR BROKERS NO. 1568-98 SUBJECT : Philippine Realty & Holdings Corporation In reply to the Exchange's request for clarification regarding the article entitled "Foreign firm wants to buy Philrealty's stake in iBank" published in the July 2, 1998 issue of the Manila Times, Amador C. Bacani, Executive Vice President of Philippine Realty & Holdings Corporation submitted a self-explanatory one-page letter dated July 7, 1998 which reads as follows: "I-Bank There is no agreement yet preliminary or otherwise with the foreign financial institution. The decision to buy as well as the price will be made only after the due diligence audit. There were other interested parties who previously considered purchase of our shares and conducted their own due diligence but no agreement was reached. Bonifacio Land Corporation There was one foreign real estate developer who took an interest in purchasing our shares together with those of M (Manuela) L & H Corp. and RFM Corp. and had serious discussions with Metro Pacific and Fort Bonifacio Development Corp. An informal offer was made which was unacceptable to the sellers. Talks are ongoing to enhance the offer. cdlex Loan Restructuring Just like other debt-ridden companies, Philrealty is discussing various alternatives with our creditors on how to ease our debt-servicing burden. No agreement has been reached yet. (SGD.) REYNOLD P. ONG Vice-President, Listings and Disclosure Group