Jollibee 2nd QTR. Income up 35.7%

July 31, 1998 PSE CIRCULAR FOR BROKERS NO. 1792-98 JOLLIBEE FOODS CORPORATION PRESS RELEASE JOLLIBEE 2nd QTR. INCOME UP 35.7% Jollibee Foods Corporation announced that it achieved 35.7% growth in its second quarter consolidated recurring net income, increasing from P158 million in 1997 to P215 million in the same period this year. This improvement in earnings was driven by strong systemwide sales for both the Jollibee and Greenwich fastfood chains. Systemwide sales for the first semester totaled P6.7 billion, up by 31.7% from the P5.1 billion recorded last year. "The fastfood market has remained strong up to the second quarter but the real challenge will be in the third and fourth quarters." Mr. Tony Tan Caktiong, Jollibee Foods Corporation Chairman and CEO said. LLjur Gross revenues for the second quarter increased 27.2% to P2.77 billion from the P2.18 billion registered in 1997. Sales rose 27.3%, to P2.56 billion from P2.01 billion while royalties and franchise fees went up 30.4% to P185 million from P142 million. The Company - the country's largest and only publicly, listed fastfood corporation has been able to sustain its planned network expansion so far for both Jollibee and Greenwich systems. The Jollibee system has a chain of 265 stores by the end of June. Greenwich, on the other hand, has gained the leadership in the pizza fastfood segment as its network of stores reached the 145 store mark nationwide. It expects to double its system sales in 1998, the second time in a row that it has also posted 100% sales growth over the previous year. He added that the Company has managed to strengthen its competitive advantage due to its strong balance sheet. "Our solid financial position, with virtually zero debt, positions us to channel our strategic efforts and resources to pursue our plans in a challenging economic environment without the handicap of a costly debt burden," he explained. The Company undertook a capital raising exercise by way of its highly successful warrants offering in the first quarter that enabled it to raise P1.36 billion and retire its foreign exchange obligations. Jollibee, he added, continues to pursue its strategic program to fortify its market coverage, upgrade operating and cost efficiencies and prudently manage its financial resources in light of the economic situation. The Company capped its expansion this quarter with the successful opening of its first Jollibee in the United States. Located in Daly City in California, it was an instant hit and plans are underway for the construction of additional stores. The US operation is a joint venture company with Jollibee as a majority partner. Tan Caktiong disclosed that while the financial results in the first two quarters have been encouraging, the Company remains cautiously optimistic for the balance of 1998.