PSE Circular for Brokers No. 1645-98

July 16, 1998 PSE CIRCULAR FOR BROKERS NO. 1645-98 July 16, 1998 Philippine Stock Exchange, Inc. Disclosure Department Listings & Disclosure Group 4th Floor, Phil. Stock Exchange Centre PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Mr . Reynold Ong Vice President Listing & Disclosure Group Gentlemen : Please be informed that at the special stockholders meeting of LA TONDENA DISTILLERS, INC. (the "Company") held today, 16 July 1998, the shareholders approved the amendment of the Articles of Incorporation of the Company to provide for One Hundred Million (100,000,000) preferred shares with a par value of P1.00 per share which preferred shares are convertible into common shares at the option of the holder. Dividends on the preferred shares shall approximate the dividends of the common shares. Maturity will be five years from issue date. The conversion premium will be determined by the Board taking into consideration a predetermined historical trading average of the shares of the Company. There shall be no pre-emptive rights on the issuance of the convertible preferred shares. As earlier disclosed, there will be a private placement of the convertible preferred shares with private equity investor(s). The exact number of shares to be issued will be determined after the setting of the issue price, which shall be market price at date of issue. The aggregate issue value will be up to P2 Billion. This disclosure is being made in compliance with the requirements of the Philippine Stock Exchange. Very truly yours, (SGD.) BARBARA ANNE C. MIGALLOS