Ayala Subsidiary Invests in HK Property Company

August 17, 1999 PSE CIRCULAR FOR BROKERS NO. 2041-99 August 16, 1999 Securities & Exchange Commission Director Linda A. Daoang Money Market Department S.E.C. Building, EDSA Mandaluyong City Philippine Stock Exchange Disclosure Department Listing and Disclosure Group 4/F PSE Center, Exchange Road Ortigas Center, Pasig City SUBJECT : Ayala Subsidiary Invests in HK Property Company Gentlemen : Please be informed that Ayala Corporation's wholly-owned subsidiary, Ayala International Pte. Ltd. (Ayala International), today invested in Asia Standard International Group Limited, a publicly-listed property company in Hong Kong. Ayala International will acquire 40 million new shares at HK$ 1.00 per share for HK$ 40 Million or US$ 5.1 Million. The investment is equivalent to almost 2% of Asia Standard's expanded share capital. Grosvenor Ltd., one of Ayala International's co-shareholders in a Singapore joint venture will simultaneously invest in Asia Standard, acquiring 368 million new shares in the company. The investment transaction is scheduled to close this week pending approval of the Hong Kong Stock Exchange. Ayala International is an investment holding company based in Singapore. The company is primarily tasked with establishing the Ayala name as both a regional and international player through direct investments, joint ventures, and alliances. Ayala International's primary areas of focus are aligned with some of the major strengths of the Ayala Group property investment and development, food manufacturing, distribution and fastfood, infrastructure and electronics and information technology. Asia Standard was listed in the Hong Kong Stock Exchange in 1991. The company's principal business is property investment and development. It has expanded into hotel ownership and Operation in 1994 and acquired the franchise to operate the TGI Friday's restaurants in Hong Kong and several cities in China in 1997. Asia Standard's market capitalization is currently at HK$ 2.3 Billion or US$ 300 Million. This investment by Ayala International marks the second investment undertaken with the Grosvenor Group. Ayala International and Grosvenor are both shareholders in a joint venture company which owns the Forum Shopping Mall and Office Tower, located on Orchard Road, the prime shopping area of Singapore. As the region continues to recover through structural reform, Ayala International will look to expand its investment portfolio. Ayala International will pursue opportunities by forging new, long-term business relationships in the Asia-Pacific region and beyond. The foregoing is submitted in compliance with the rules of the Securities and Exchange Commission and the Philippine Stock Exchange. Very truly yours, (SGD.) RENATO O. MARZAN Managing Director & Assistant Corporate Secretary