PSE Circular for Brokers No. 1647-99

July 7, 1999 PSE CIRCULAR FOR BROKERS NO. 1647-99 July 7, 1999 Ms. Grace B. De Guia Asst. Manager, Disclosure Dept. Philippine Stock Exchange, Inc. 4th Floor, PSE Centre Exchange Road, Ortigas Center Pasig City Dear Ms. De Guia : We refer to your inquiry regarding the article that came out in the Philippine Daily Inquirer entitled "Metro Pacific to Bail Out Debt Saddled Shipping Unit". Negros Navigation Co. Inc. (Nenaco) has conducted discussions with its bankers regarding the amendment of the payment terms of its facilities, as certain cash liabilities are short-term in nature. These discussions have been conducted on an amicable basis reflecting the support of the company's bankers. During the discussions with the bankers, the possibility of replacing certain debt of Nenaco with an MPC instrument has been discussed because of the strength of MPC's balance sheet. The discussions regarding such an alternative is consistent with MPC's support for its group companies. It is not presently certain whether the bankers involved will wish to pursue this discussion further or to continue their relationship with Nenaco. Very truly yours, (SGD.) CORAZON P. GUIDOTE Group Vice President Corporate Communication and Investor Relations