Marsman & Company, Inc.

August 10, 1998 PSE CIRCULAR FOR BROKERS NO. 1853-98 August 7, 1998 Philippine Stock Exchange, Inc. Philippine Stock Exchange Centre Exchange Road, Ortigas Center Pasig City, Metro Manila Attention: Mr . Ruben L . Almadro Vice-President, Compliance & Surveillance Group RE : Marsman & Company, Inc . Gentlemen : We acknowledge receipt of your letter dated 7 August 1998 which called our attention to the unusual movement in the price of Marsman & Company, Inc. Class "B" shares at today's trading. We understand that the share price increased from the previous day's close of P0.21 per share to P0.31 per share, or an increase of 47.62%. In connection with such unusual price movement, please be advised that we are not aware of any information which could have caused such price movement. We understand that of some 120,000 shares that were traded as of 11:30 a.m. today, only 20,000 shares were involved in the single transaction which reflected such unusual price movement. The volume of trade being rather thin and the amount being insignificant, we are inclined to believe that the unusual price cannot be construed as an aberration. Evidently, the single transaction that gave rise to such price movement should be construed as a stray or isolated transaction. Further, the price movement could not have caused nor has it the potential to cause any damage to the investors. Consequently, we believe that there is no necessity of suspending the trading of the said issue on Monday, 10 August 1998. Thank you and we remain, Very truly yours, (SGD.) AVELINO M. SEBASTIAN, JR. Corporate Secretary