PSE Circular for Brokers No. 1604-98

July 13, 1998 PSE CIRCULAR FOR BROKERS NO. 1604-98 July 10, 1998 Philippine Stock Exchange PSE Center, Exchange Road Ortigas Center, Pasig City Fax No. 636-08-09 Gentlemen : We refer to what appears to be a press release which appeared in the July 9, 1998 issue of the Philippine Daily Inquirer stating that there will be a bidding of the common shares of stocks of Victorias Milling Company, Inc, to raise fresh capital as of the rehabilitation plan of the Company. LLjur Please be informed that said press release did not come from the VMC Management. There are still some issues, such as those concerning pre-emptive rights and debt to equity price conversion, which the SEC will still resolve. Until the SEC shall have finally ruled on all issues, it will be premature to announce the bidding of VMC shares because it will give the impression that the VMC rehabilitation plan has been finally approved, which is not the case as it is still pending resolution by the SEC. Very truly yours, VICTORIAS MILLING COMPANY, INC. (SGD.) RUBEN E. AGPALO Corporate Secretary