Ever Gotesco Resources and Holdings, Inc. ("EVER")

July 20, 1998 PSE CIRCULAR FOR BROKERS NO. 1671-98 July 17, 1998 PHILIPPINE STOCK EXCHANGE Disclosure Department Listing and Disclosure Group 4/F Philippine Stock Exchange Center PSE Center, Exchange Road Ortigas Center, Pasig City SUBJECT : Ever Gotesco Resources and Holdings, Inc . ("EVER") Gentlemen : In connection with the news article published in the PHILIPPINE DAILY INQUIRER last July 16, 1998 captioned "Creditors give Ever 90-day reprieve," refers specifically to the creditors of the Ever Emporium, Inc. ("EEI") which operates the department stores and supermarkets. EEI is the anchor tenant in two (2) of the three (3) operating malls of EVER. We were informed that the EEI creditor banks have granted the EEI a 90-day suspension in debt payments, during which period EEI and its creditor banks will meet to agree on an acceptable restructuring plan for the obligations of EEI. It is worth mentioning that EEI is not listed in the Philippine Stock Exchange. The other companies in the Ever Gotesco Group are private entities and are also not listed in the Philippine Stock Exchange, save EVER and Gotesco Land, Inc. As such, we are not privy to information on financial condition of the other companies, much more that of the Ever Stores. Very truly yours, EVER GOTESCO RESOURCES AND HOLDINGS, INC. by: (SGD.) VICENTE VILLA CANONEO Corporate Secretary Creditors give Ever 90-day debt reprieve THE BOARD of the Ever Gotesco Group of Stores has signed a memorandum of agreement providing a 90-day "ceasefire" on any action on the corporation's debts to its creditor banks. United Coconut Planters Bank said 13 creditor banks agreed that for 90 days starting June 10, none of them would take any court action to recover the money they lent to Ever Gotesco Store. In turn, Ever Gotesco Store agreed to refrain from filing an application to suspend its debt payments with the Securities and Exchange Commission. Ever Gotesco Store is the supermarket and department store arm of the Go family, who also owns and controls three other firms under the Ever Gotesco group: Ever Gotesco Holdings and Resources Inc., Gotesco Properties Inc. and Gotesco Land Inc. The Ever Gotesco group owes a total of P16.1 billion to 29 creditor banks led by the UCPB. LLjur These banks decided to come together after the Banker's Association of the Philippines came up with a resolution urging its members to initiate discussions with clients facing problems meeting obligations and to explore solutions other than legal recourse. Rose Maipid, corporate communications manager of UCPB, said the banks were waiting for accounting firm Sycip, Gorres and Velayo to complete its audit of the financial statements of Ever Gotesco Store before talks on restructuring the loans of the group could begin. The financial statements, which are expected to be completed soon, would be the basis for future restructuring agreements, she said.