PSE Circular for Brokers No. 1982-99

August 10, 1999 PSE CIRCULAR FOR BROKERS NO. 1982-99 August 9, 1999 Ms. Janet J. Alcala Disclosure Department Philippine Stock Exchange Dear Ms. Alcala : With reference to your letter this morning, we are furnishing your kind office with the following official disclosure on Bayan Water Services Inc.: Bayan Water Services, Inc., a newly formed subsidiary of Benpres Holdings Corp. and Montgomery Watson New Zealand Ltd., has confirmed the 15-year lease of the Magdalena, Laguna water system, in an amount totaling over P70 million. Bayan Water president Rafael Alunan III and Magdalena mayor Pablo Agapay signed this afternoon the contract under the auspices of the Urban Water and Sanitation Project office of the Department of the Interior and Local Government (DILG). Under the leadership of Secretary Ronaldo Puno, the DILG has been aggressive in the development and establishment of new municipal water systems around the country. LLjur Financing for the study, design and construction of the water system was extended by the Development Bank of the Philippines and the World Bank. Magdalena is a 5th class municipality east of Mount Makiling and south of Sta. Cruz. It has a population of approximately 18,000 in 24 barangays. The initial service area of the water system to be operated by Bayan Water comprises some 1,700 households. Bayan Water is the newest initiative of the Lopez Group, in pursuit of its goal of being a public business in the public's service. Benpres, the flagship holding company of the Lopez Group, is also the controlling shareholder of Maynilad Water Services, Inc., concessionaire for Metro Manila's west zone. "We are happy to have won the first solicited bid for a water system outside of Metro Manila. Bayan Water is especially glad to be blazing this new trail with a very pro-active chief executive in the person of Mayor Agapay. And I am personally gratified to be interacting once again with the DILG in the hope that Bayan Water could be of further service to other communities in the future," Mr. Alunan said. We hope this addresses your requirements. Noted by: (SGD.) ANGEL S. ONG Vice-President Finance Best regards, (SGD.) LOUIE A. HILADO Finance Manager August 9, 1999 Ms. Janet J. Alcala Disclosure Department Philippine Stock Exchange Dear Ms. Alcala : Pertaining to our previous transmittal, kindly note that the Bayan Water contract was signed on 4 August 1999. LLphil Best regards, Noted by: (SGD.) LOUIE A. HILADO (SGD.) ANGEL S. ONG Finance Manager Vice President Finance