PSE Circular for Brokers No. 1708-99

July 13, 1999 PSE CIRCULAR FOR BROKERS NO. 1708-99 July 12, 1999 PHILIPPINE STOCK EXCHANGE 4/F PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Luisa W . Buenaventura Supervisor, Disclosure Department Gentlemen : Mondragon International wishes to disclose to the Philippine Stock Exchange that it is currently undergoing negotiations to: 1. Contract with one of the largest junket operations in Asia to bring players from all over Asia directly on chartered flights four times a week to Clark Field to participate in the Mimosa Regency Casino activities. This contract shall be a win-loss junket and not a lease of space within the casino since the equipment and dealers shall belong or be employed by Mondragon Leisure. It is estimated that as many as three to four hundred players shall be travelling to Clark weekly for this purpose, commencing in August. 2. Sell up to one hundred million shares of Mondragon International to a very large owner of casinos, located principally in Europe. This agreement is expected to materialize soon, for the actual transfer of shares to take place 60 to 90 days from now. LLpr 3. Conclude negotiations to sell up to forty percent (40%) of Mondragon Leisure, the lessees at Mimosa in the Clark Special Economic Zone, who are presently owned one hundred percent (100%) by Mondragon International. The negotiated amount is for US$175 million and shall be transacted within thirty days, upon presentation to Mondragon of at least 10 percent (10%) of that amount. Due to the imminent nature of these deals, Mondragon feels it is best to disclose the stage at which they are at, since there has been considerable speculation without the company's issuance of any statements regarding the above. At the same time, until actual payment and consideration is made, negotiations shall remain exactly that, prior to the conclusion of the same. Sincerely, (SGD.) JOSE ANTONIO U. GONZALEZ Chairman and CEO