Mabuhay Holdings Corporation

August 11, 1998 PSE CIRCULAR FOR BROKERS NO. 1872-98 SUBJECT : Mabuhay Holdings Corporation Mabuhay Holdings Corporation ("MHC") replied to the Exchange's request for an update with regard to MHC's planned purchase of 51% of Philippine Plaza Holdings, Inc. which was disclosed to the Exchange on November 29, 1996 (Company Notice No. 1853, series of 1996). MHC in its letter dated August 7, 1998, informed the Exchange that the planned acquisition by MHC from Allied Kajima Ltd. of a 51% interest in the Westin Philippine Plaza Hotel has not yet materialized to date. This is because the parties are still renegotiating the terms thereof taking into account the peso depreciation that has supervened and the fact that the renovation of the hotel has not yet been completed, MHC having contemplated an acquisition of an interest in a fully renovated hotel. cdt As regards the P20 million earnest money, it being part of the purchase price and there being no agreement by the parties to the contrary, the same should be returned to MHC if the acquisition does not push through. For your information. (SGD.) REYNOLD P. ONG Vice-President, Listings and Disclosure Group