LTDI Stockholders Approve P2B Equity

July 17, 1998 PSE CIRCULAR FOR BROKERS NO. 1647-98 Press Release LTDI Stockholders Approve P2B Equity Shareholders of La Tondea Distillers, Inc. in a special stockholders meeting held today approved the amendment to the Articles of Incorporation of the Company to provide for 100 million preferred shares, with a par value of P1 per share. There will be no pre-emptive rights of the issuance of shares. In a disclosure to the Securities and Exchange Commission, LTDI Corporate Secretary Barbara Anne C. Migallos explained that there will be a private placement of the preferred shares with private equity investors. These shares may be converted into common shares at the option of the holder. The conversion premium will be determined by the Board, taking into consideration a predetermined historical average of the shares of the Company. The holders of the preferred shares will be entitled to dividends approximating that of common shares. Maturity will be five years from date of issue. LLphil The exact number of shares to be issued will be determined after the setting of the issue price, which shall be pegged at market price on the date of issue. The aggregate issue value will be up to P2 billion.