PSE Circular for Brokers No. 1805-98

August 3, 1998 PSE CIRCULAR FOR BROKERS NO. 1805-98 July 30, 1998 Listings and Disclosure Group Philippine Stock Exchange PSE Center, Exchange Road Ortigas Center, Pasig City Gentlemen : We are writing in response to your request on July 29, 1998 for clarification in regard to the news article captioned "RCRC seeking bigger collateral from Villar" published in the Philippine Daily Inquirer on the same date. On the issue of Ayala Land's (ALI) alleged failure to obtain a clean opinion from its private audit firm on its planned purchase of a strategic stake in our Company, we wish to inform you that as of this date, the Ayala due diligence is still ongoing and we have not received any advise of their findings, adverse or otherwise. On the issues involving ALI's request for a cut in the purchase price, Mr. Villar's willingness to sell more of his shares in OMP, and other buyers interested in Mr. Villar's shares, please be informed that these are matters involving stockholders of CMP and that we are not in possession of knowledge which would confirm or clarify these particular issues. cdt Attached for your reference is a news article containing ALI's disclosure to the SEC regarding these issues. Sincerely, (SGD.) ALMA P. VILLADOLID Corporate Secretary ALI not cutting C&P price Ayala Land Inc. (ALI) denied yesterday it was losing interest in buying 38.4 percent chunk of C&P Homes unless there is a reduction in the acquisition price. In a disclosure to the Securities and Exchange Commission (SEC) yesterday, ALI president Francisco Licuanan said there is merely a delay in the due diligence study of C&P's assets. "As a dynamic company that has grown rapidly over the year's, C&P's record keeping has been more complicated than we expected, and therefore due diligence is taking longer than anticipated," said Licuanan quoting a joint statement issued by the two firms. He added that both firms continue to believe that the strategic partnership between C&P and ALI is still fundamentally sound. "Both parties are still desirous of completing the transaction in due time, while first agreeing on any necessary steps and transaction refinements to preserve economic values of both parties," said ALI and C&P, (JAL)