PSE Circular for Brokers No. 1750-98

July 28, 1998 PSE CIRCULAR FOR BROKERS NO. 1750-98 July 24, 1998 PHILIPPINE STOCK EXCHANGE 4/F Philippine Stock Exchange Center Exchange Road, Ortigas Center Pasig City, Metro Manila Attention: Disclosure Department Listings and Disclosure Group Gentlemen : As previously disclosed, on 2 December 1997, the Securities and Exchange Commission (SEC) approved Prime Gaming Philippines, Inc.'s (PGPI) application for increase in capital stock, out of which 52,000,000 PGPI shares were issued in exchange for all the outstanding shares of Philippine Gaming Management Corporation (PGMC) consisting of 250,000 shares. In approving the above exchange, however, the SEC imposed a two-year lock up over the entire 52,000,000 PGPI shares received by Berjaya Lottery Management (H.K.) Ltd. (BLM), the majority shareholder of PGMC, and the minority PGMC shareholders. The SEC further required BLM to undertake in writing its continued participation in the management of PGPI for the duration of the projection period used in the valuation of the share swap. We now apprise that on 16 July 1998 the SEC, approved the application for a "one-time transfer" by certain shareholders of PGPI of their shares in favor of an affiliate of BLM, provided that the affiliate continues to abide by the lock-up provision and BLM continues to participate in the management of PGPI. Very truly yours, (SGD.) JOSE A. BERNAS Corporate Secretary