PSE Circular for Brokers No. 1660-99

July 8, 1999 PSE CIRCULAR FOR BROKERS NO. 1660-99 July 7, 1999 PHILIPPINE STOCK EXCHANGE PSE Centre, Exchange Road Ortigas Center Pasig City, Metro Manila Attention: Ms . Grace B . De Guia Asst . Manager, Disclosure Dept . Gentlemen : In reply to your fax of 07 July 1999 regarding the news article appearing in the 07 July 1999 issue of the Philippine Daily Inquirer under the caption: "Metro Pacific to ban out debt-saddled shipping unit," we would like to clarify, as follows: 1. Negros Navigation Company, Inc. (Nenaco) is not the source of the said news article. 2. Nenaco has conducted discussions with its bankers regarding the amendment of the payment terms of its facilities since some of the cash liabilities are short-term in nature and these discussions have been conducted on an amicable basis reflecting the support of the company's bankers; 3. During said discussions, the possibility of replacing certain debts of Nenaco with a Metro Pacific Corporation (MPC) instrument has been discussed due to the strength of MPC's balance sheet and which is consistent with MPC's support for its group companies; LLpr 4. It is still uncertain at this point whether the bankers involved will wish to pursue said discussions or will continue their relationship with Nenaco. We trust that the foregoing clarification is in order. Very truly yours, NEGROS NAVIGATION CO., INC. By: (SGD.) MELANIE B. JAYME Officer-in-Charge