PSE Circular for Brokers No. 2070-98

September 7, 1998 PSE CIRCULAR FOR BROKERS NO. 2070-98 September 3, 1998 PHILIPPINE STOCK EXCHANGE 4/F, PSE Centre Exchange Road, Ortigas Center Pasig City Gentlemen : We are writing in response to your request on September 2, 1998 for clarification in regard to the news article "Villar, richest solon, is P 3.6B richer" published in the Philippine Star on the same date. The article reported that Ayala Land Inc (ALI) had formalized its acquisition of a 38.4% stake in C & P Homes Inc. cdpr We wish to clarify that contrary to what was reported in the said article, our majority stockholder FINE PROPERTIES INC. (FINE) has informed us that by mutual agreement with ALI they have both agreed to indefinitely suspend the transaction by which ALI was to have acquired a portion of FINE's holdings in C & P Homes Inc. As contained in an announcement which was published in the major dailies this morning, both parties stated that "the current price of shares of C & P in the stock exchange has preempted the transaction from proceeding since it is no longer indicative of the true value of the company." We would like to confirm however, that future opportunities for business partnership and cooperation are still being considered, particularly in C & P's core business of low-cost and socialized housing. Discussions are currently and actively being pursued in order to define the terms under which such a partnership might be undertaken. For your information. Sincerely, (SGD.) ALMA P. VILLADOLID Corporate Secretary