PSE Circular for Brokers No. 1775-99

July 19, 1999 PSE CIRCULAR FOR BROKERS NO. 1775-99 FOR IMMEDIATE RELEASE U . S . INVESTMENT FIRM, COLONY CAPITAL, TAKES STAKE IN MEGAWORLD Megaworld Corporation has informed this Securities and Exchange Commission that Colony Capital, Inc., a private, international real estate investment firm, will purchase 403.2 million new shares of the holding company at P2.48 each. The purchase price represents a premium of 9.7 percent to Megaworld's closing price of P2.26 on Friday. The deal gives Colony Capital a 7.4 percent stake in Megaworld and a seat on the board of directors. It will raise P1 billion in proceeds which the developer plans to use as working capital. Megaworld founder, chairman and president Andrew Tan said the entry of a global strategic partner such as Colony Capital will strengthen the asset base and cash resources of Megaworld. cdpr It sends a strong that foreign investors are once again bullish on the opportunities in the Philippine property sector," Tan said. "As a long term-strategic investor, Colony will bring to this partnership the benefits of its expertise and extensive network of alliances in real estate-related industrial worldwide." "Megaworld provides an excellent opportunity for Colony to invest in high quality assets," said Robert Zulkoski, managing director, Colony Asia Pacific. He continued: "The company is a leading developer of exceptional middle-income and luxury residential housing. Through its Eastwood City CyberPark project, Megaworld has positioned itself to lead the market by offering a real estate product designed for the 21st century, attractive to both technology companies and technologically sophisticated resident. In addition, Colony believes Megaworld's shares are significantly undervalued." "Colony's investment in Megaworld Corporation reaffirms our strong belief in the fundamentals driving the Philippine real estate market," Zulkoski said, adding: "This investment is consistent with our strategy to align ourselves with leading partners, like Andrew Tan, throughout Asia." Previous Colony investments in Asia include Kerry Properties Limited, a Hong Kong based real estate development company led by Robert Kuok; a controlling ownership in Amanresorts, the Asian-based charge of luxury resorts; and a significant commitment to purchase and manage non-performing loans in Korea, Japan and Thailand. Colony Capital is a private, international real estate-related investment firm led by Thomas J. Barrack, Jr. its chairman and chief executive officer, and Kelvin L. Davis, its president and chief operating officer. Since its formation in 1991, Colony has been one of America's most active and innovative real estate investors, investing in excess of US$5 billion in more than 50 distinct property, corporate ad portfolio transactions. The firm is headquartered in Los Angeles, with offices in Singapore its regional headquarters for the Asian Pacific region, Tokyo, New York, Forth Worth, Texas, Koala Coast, Hawaii, and Paris, France. prcd