PSE Circular for Brokers No. 1974-98

August 26, 1998 PSE CIRCULAR FOR BROKERS NO. 1974-98 August 25, 1998 PHILIPPINE STOCK EXCHANGE, INC Phil. Stock Exchange Center, Exchange Road Ortigas Center, Pasig City Metro Manila Attention: Mr . Ruben L . Almadro VP-Compliance & Surveillance Group Gentlemen : We respond to your letter dated August 25, 1998 addressed to our Assistant Corporate Secretary which we received via facsimile past noon today. We are unaware of any new information which may have caused the increase in trading price of Sime Darby Pilipinas, Inc. (SDPI) shares this morning; which you observed went up by 49.12% per share, other than the information already disclosed to the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange, Inc. (PSE) last Friday, August 21, 1998. As you are aware already, our lawyers, Romulo, Mabanta, Buenaventura, Sayoc & de los Angeles submitted an application, in our behalf, for the delisting of the SDPI shares to take effect immediately after completion of the tender offer of SD Far East (1991) Ltd. to acquire SDPI shares at the price of P30 per share. Simultaneously with the PSE filing, SD Far East (1991) Ltd. also filed with the SEC the tender offer documents, all of which were also filed with the PSE. Immediately after the Board of Directors meeting of SDPI on the same date, we sent the PSE via facsimile a copy of SEC Form 11-C which reported the resolution approved in the said Board of Directors meeting. Hard copies of the said Form 11-C were filed with PSE and SEC in the afternoon of August 21, 1998. Thus, all relevant information have already been disclosed and made public even before the trade(s) transacted today. cdll Thank you. Very truly yours, (SGD.) RONALD E. JAVIER Vice President Corporate & Legal Affairs