PSE Circular for Brokers No. 168-00

January 26, 2000 PSE CIRCULAR FOR BROKERS NO. 168-00 Date : January 25, 2000 TO : Philippine Stock FROM: UNIVERSAL ROBINA Exchange CORPORATION Attention : Ms. Grace B. de Guia Emmanuel C. Rojas, Jr. Assistant Manager Corporate Secretary Corporate Disclosure Department Listings and Disclosure Group Address : PSE Centre, Exchange Road 40/F Robinsons-PCI Tower Ortigas Center, Pasig City ADB Ave., cor. Poveda Road Pasig City, Metro Manila Philippines Fax No. : 636-08-09 Fax No. : (632) 633-9387; (632) 633-9207 Tel. No. : 636-0122 to 41 Tel. No. : (632) 633-7631; (632) 637-1670 loc. 706/536/812 MESSAGE Dear Ms. de Guia Re : Clarification of Business World News Article captioned "Universal Robina makes overseas expansion move" Thank you for your fax of January 21, 2000 requesting for a written clarification/confirmation of the abovecaptioned news article which appeared in the January 21, 2000 issue of the Business World. In reply, Universal Robina Corporation (URC) confirms the information contained in the subject news article except for the following corrections: 1. URC's stake in the foreign company is 77% (not 67%); and 2. URC's consolidated net sales of P10.17 billion for nine months is up by 16.2% over the same period in 1998 (not 1997). LibLex Thank you very much. Very truly yours, Universal Robina Corporation (SGD.) EMMANUEL C. ROJAS, JR. Corporate Secretary Universal Robina makes overseas expansion move Listed food firm Universal Robina Corp. (URC) is set to acquire majority control of its Malaysia and Thailand food production units once it converts P2.4 billion in advances to other stockholders into equity. The acquisition is seen to bolster the company's revenue prospects given an annual revenue of $35 million from these international units. The figure is projected to increase to $50 million this year from the expected increased product awareness offshore. "At some point, we would like to expand our branded food business in Thailand and Malaysia with AFTA (ASEAN Free Trade Area agreement) coming up. "URC has already made some advances in Thailand and Malaysia (units) but we have to consolidate them this year into our balance sheet... We now have to look at ASEAN as a single entity," URC executive vice-president Lance Yu Gokongwei said in a dinner with reporters. The company also plans to set up a product distribution firm in Indonesia to complement these manufacturing units. The food company expects to carry out the consolidation of its international investments within the next two months. The conversion will increase URC's stake into the foreign company to 67%, Mr. Gokongwei said. Based on URC's 1998 annual report advances of P1.15 billion in 1997 and P1.46 billion in 1998 were made to an unidentified foreign company to support the company's expansion outside the Philippines, principally in China and Southeast Asia. The Gokongwei group's food subsidiary remains to be the holding firm's major income contributor. As of the third quarter of last year, URC posted consolidated net sales of P10.17 billion for nine months, up by 16.2% over the same period in 1997. The growth in sales was attributed mainly to the company's core-branded consumer foods, which in 1998 posted a 25.1% revenue growth and a 6.3% improvement in volume sales. Some of its branded consumer products are Jack & Jill snacks, Presto Tivoli ice cream, Nissin and Payless noodles, Great Taste coffee as well as the Maxx and X.O. candy lines. URC is also into the sugar and flour production business as well as into agro-industrial ventures. The firm is reportedly in the list of parties interested to acquire sugar producer Victoria Milling Co.