July 16, 1998PSE CIRCULAR FOR BROKERS NO. 1639-98July 15, 1998

July 16, 1998 PSE CIRCULAR FOR BROKERS NO. 1639-98 July 15, 1998 PHILIPPINE STOCK EXCHANGE, INC . Disclosure Department, Listing & Disclosure Group PSE Center, Exchange Road, Ortigas Center Pasig, Metro Manila Fax No. 636-0809 or 637-8811 Attention: Mr . Reynold P . Ong Vice-President Gentleman : Please be informed that earlier this afternoon, the board of Acesite (Phils.) Hotel Corporation approved the following resolutions: "RESOLVED, That, the Board shall recommend for stockholders approval, a 25% stock dividend for the corporation for stockholders on record as of 29 July 1998 and that the Corporate Secretary, be, as he is hereby, directed to include the matter on the agenda of the Annual Meeting of Stockholders to be held on 19 August 1998 for the purpose of approving such recommendation." "RESOLVED, That the Board shall recommend for stockholders approval, a motion granting the board the full power to determine the price and terms of the issuance of issuance of unissued shares of the corporation, including, but not limited to, transactions such as stock rights offerings, options, warrants, share swaps, property swaps, debt-to-equity conversions, convertible notes, private placements and public offerings, and that the Corporate Secretary, be, as he is hereby, directed to include the matter on the agenda of the Annual Meeting of Stockholders to be held on 19 August 1998 for the purpose of approving such recommendation." LLpr We will send you our SEC Form 11-C by tomorrow. We hope that everything is in order; please do not hesitate to get in touch with the undersigned should you need anything else. Thank you for your kind and immediate attention. STOCK DIVIDEND STOCK 25% EX-STOCK July 23, 1998 RECORD DATE July 29, 1998 Very truly yours, (SGD.) RICKY L. RICARDO Project Manager