PSE Circular for Brokers No. 1594-99

July 1, 1999 PSE CIRCULAR FOR BROKERS NO. 1594-99 July 1, 1999 Disclosure Department Philippine Stock Exchange, Inc. 4/F Philippine Stock Exchange Centre Exchange Road, Ortigas Center Pasig City, Philippines Attention: Ms . Luisa W . Buenaventura Supervisor Dear Ms. Buenaventura : This is in response to your fax message of even date requesting clarification/confirmation on a news article entitled "Empire East offers assets to pay loan" which appeared in the July 1, 1999 issue of the Manila Times. We confirm that there is an ongoing negotiation with Government Service Insurance System ("GSIS") on the possible settlement of the company's obligation to GSIS through dacion en pago arrangement. However, as of this date no final agreement has yet been reached by the parties. LLjur We trust that the foregoing shall have clarified our position on the matter. Very truly yours, (SGD.) MA. THERESA CAILANTA-HOADLEY Duly Authorized Signatory