PSE Circular for Brokers No. 2043-99

August 17, 1999 PSE CIRCULAR FOR BROKERS NO. 2043-99 August 16, 1999 Philippine Stock Exchange Tektite Tower, Ortigas Center Pasig City Attention: Ms . Luisa W . Buenaventura Supervisor, Disclosure Department Ms . Raquel R . Angeles Assistant, Disclosure Department Mesdames : In reference to the article that came out in the August 16, 1999 issue of the Philippine Daily Inquirer entitled "Benpres units to tap $1.6B in foreign loans", Benpres Holdings Corporation would like to make the following clarifications. cd 1) All debt financing activities will be done at the subsidiary level 2) Breakdown of debt financing activities as follows: MWSI: US$350 Million; mandate letter signed last July 26, 1999 MNTC: US$250 Million; target financing to be completed by 1st Half 2000 First Gas: US$340 Million; target financing to be completed by YE1999 3) Meralco has decided to delay its planned offering of 10-year Yankee bonds, given the significant weakness in global financial markets. The Company successfully completed an extensive roadshow in Asia, Europe and the US, which established a high level of investor confidence in Meralco. However, management felt its objectives of completing a successful inaugural offering beneficial to investors, Meralco and the Philippines would be better met in a more stable market environment. Should you have further questions or clarifications, please do not hesitate to give us a call. For your information and guidance. Warm Regards, (SGD.) CATHERINE LOPEZ Corporate Information Officer