RFM Receives Capital Infusion From New Financial Partner

July 23, 1999 PSE CIRCULAR FOR BROKERS NO. 1823-99 RFM RECEIVES CAPITAL INFUSION FROM NEW FINANCIAL PARTNER Food and beverage giant RFM Corporation reported yesterday the infusion of approximately P1.6 billion in cash from new financial partner, WP Argosy Limited, a unit of major global venture banking firm, E.M. Warburg, Pincus and Company. This completes the recently signed investment agreement between RFM and WP Argosy. llcd With this, WP Argosy Limited officially subscribes to initially, 260 million new shares of RFM. In addition, the said firm purchased about 60 million secondary shares from InvestAsia Corporation, the largest shareholder of RFM Corp., in order to bring their total share of the company's outstanding capital stock to about 16%. InvestAsia also announced that it intends to offer the same opportunity to other RFM shareholders at the same price, proportionate to their holdings of a certain record date to be announced shortly. E.M. Warburg, Pincus & Company, the parent company of WP Argosy Limited, is a New York-based private equity firm managing approximately US$ 11 billion invested in various business worldwide. Argosy Partners is a private equity investment advisory firm that is the local partner of Warburg Pincus for this investment in RFM. RFM President and Chief Executive Officer Jose A. Concepcion III stated that, "We believe that among those who have expressed interest in investing in RFM, Warburg Pincus and Argosy are the ones that possess the kind of strategic thinking, financial expertise and management philosophy that can help mold RFM in to the world-class corporation that we want it to be." RFM reported that the funds infused will be used immediately for the repayment of debt, and will result in the further strengthening of RFM's balance sheet. This is being done in preparation for RFM's future expansion in its core food and beverage businesses, namely: softdrinks, flour, chicken, meat, tuna, juice, milk, ice cream, and food service. A number of acquisition projects are being considered by the company, to further establish its position as one of the leading food and beverage companies in the country. cdll In 1998, RFM posted consolidated net sales of over P17 billion, and net income of about P705 million.