PSE Circular for Brokers No. 1801-99

July 21, 1999 PSE CIRCULAR FOR BROKERS NO. 1801-99 July 20, 1999 PHILIPPINE STOCK EXCHANGE Disclosure Department PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Jose Luis U . Yulo, Jr . President & CEO Gentlemen : On 20 July 1999, the directors and management of Alsons Cement Corporation approved and finalized the sale of 26.42% of its 94.63% stake in Iligan Cement Corporation (ICC) to Blue Circle Philippines Inc. The sale gives Blue Circle holdings equivalent to 25% of ICC's equity. Following this, Alsons Cement will issue a convertible note to Blue Circle, which may be converted into either Alsons Cement's remaining shares in ICC or cash. Iligan Cement, located along the outskirts of Iligan City, operates in a different geographic vicinity from Alsons Cement. Its sale will allow Alsons Cement to concentrate its operations in Lugait, Misamis Oriental. More importantly, the move permits Alsons Cement to streamline its cost structure and provides it with a source of funds to service its debt obligations. The above information is provided in accordance with the rules and regulations on disclosures for publicly-listed companies. Yours sincerely, (SGD.) JONATHAN PATRICK LARA Corporate Information Officer