PSE Circular for Brokers No. 1996-99

August 11, 1999 PSE CIRCULAR FOR BROKERS NO. 1996-99 August 10, 1999 PHILIPPINE STOCK EXCHANGE, INC . Listing and Disclosure Group 4th Floor, Philippine Stock Exchange Centre Exchange Road, Ortigas Center Pasig City Attention: Ms . Grace B . De Guia Assistant Manager Ms . Elleen M . Lacorte Analyst Gentlemen : This refers to your fax message dated August 10, 1999 requesting us to make a clarification on the news article which appeared in the August 10, 1999 issue of the Philippine Daily Inquirer. The news article discussed the spin-off of the power generation assets of Alson Consolidated Resources Corporation (ACR). By way of clarification, we wish to state that the alleged spin-off is just one of the options/plans being developed and considered by ACR to raise funds to support its future undertakings. At this point, we can not yet categorically confirm whether the option or plan will materialize or not as the same still depends on a lot of factors which remain to be resolved. Like any prudent corporation ACT formulates future plans which may or may not materialize depending on various factors and we believed that it would be unwise and premature to make a disclosure on options/plans which are only being considered. As and when, however, something materializes on any of our options/plans we commit and undertake to make a timely disclosure on the matter. As earlier stated, it is still very premature to make a disclosure at this time as the spin-off is not the only option being considered. We trust that the foregoing clarification will satisfy your requirements. Thank you for your attention. Very truly yours, ALSONS CONSOLIDATED RESOURCES, INC. By: (SGD.) MELDIN AL. G. ROY Chief Financial Officer and Corporate Information Officer