CAC Registers Improved Production

July 17, 1998 PSE CIRCULAR FOR BROKERS NO. 1653-98 CAC REGISTERS IMPROVED PRODUCTION Publicly-listed sugar miller Central Azucarera de La Carlota recently reported marked improvements in its mill and refinery operations. Total cane milled reached 1.20 million tons 5.11% higher than last year's 1.15 tons. Recovery likewise improved, registering 1.736 50-kg per ton cane versus last year's 1.668 50-kg per ton. As a result of the higher tonnage milled and better yield per ton cane, a total of 2.09 million bags of sugar were produced representing a 9.40% growth over last year's production of 1.91 million bags. This despite the prolonged dry weather caused by El Nino, resulting in declining tonnage of canes in the fields, the effects of El Nino were partly offset by improvements gained when CAC put on-line its new 200 tons per hour John Thompson Steam Boiler. The boiler is part of an expansion and modernization program which began when local sugar giant Central Azucarera Don Pedro (CADP) took over the management of CAC in 1996. LLpr At present, CAC manages and operates 10 farms totaling 1,187.29 hectares of cane.