PSE Circular for Brokers No. 1734-98

July 27, 1998 PSE CIRCULAR FOR BROKERS NO. 1734-98 July 24, 1998 THE PHILIPPINE STOCK EXCHANGE Exchange Road, Ortigas Center Pasig City Attention: Mr . Reynold P . Ong Vice President Listings and Disclosure Group Gentlemen : In compliance with your disclosure requirements, we would like to inform you of WG&A, Inc. and subsidiary's financial performance for the first six months of 1998. The Company posted a consolidated net income of P108 million despite the continuing economic slowdown which has directly affected its cargo business. This is, however, still 33% below last year's figure of P161 million. Year-to-date consolidated net revenue reached P2.46 billion, 8% off from last year's revenue of P2.69 billion. Income from operations was also lower by 31% from P443 million to P306 million. On the other hand, WG&A, Inc., continues to present a strong financial position. Current ratio of 1.13:1.00 as of June 30, 1998 is even better than year-end 1997's 1.03:1.00. Moreover, debt-equity ratio is now at 36:64 compared to 38:62 as of December 31, 1997. We would also like to disclose the acquisition for P5.51 million of a small subsidiary, Mega Terminal, Inc. (MTI). Now wholly-owned by WG&A, MTI operates a container yard and subleases three warehouses. Very truly yours, (SGD.) GEORGE H. TAN Chief Finance Officer