PSE Circular for Brokers No. 2112-99

August 25, 1999 PSE CIRCULAR FOR BROKERS NO. 2112-99 Date August 24, 1999 TO Philippine Stock FROM JG SUMMIT HOLDINGS, INC. Exchange Attention Ms. Grace B. de Guia Emmanuel C. Rojas, Jr. Assistant Manager Corporate Secretary Corporate Disclosure Department Listings and Disclosure Group Address PSE Centre, Exchange Road 27/F Galleria Corporate Center Ortigas Center, Pasig City EDSA corner Ortigas Avenue Quezon City, Metro Manila Philippines Fax No. 636-08-09 Fax No. (632) 633-9387; (632) 633-9207 Tel No. 636-0122 to 41 Tel No. (632) 633-7631 loc. 706/811/812 MESSAGE Dear Ms. de Guia, RE : Clarification of Malaya News Article captioned "JG Summit to invest P20B in core businesses" Thank you for your fax of August 23, 1999 requesting for a written clarification/confirmation on the news article entitled "JG Summit to invest P20B in core businesses" which appeared in the August 23, 1999 issue of the Malaya newspaper. In reply, JG Summit Holdings, Inc. confirms the information contained in the subject news article. Thank you very much. Very truly yours, JG Summit Holdings, Inc. (SGD.) EMMANUEL C. ROJAS, JR. Corporate Secretary BONANZA FROM SALE OF APO PCIBANK JG Summit to invest P20B in core businesses JG Summit, holding company of the Gokongwei group, said it will invest P20 billion within the next 2 years in its core businesses of food, property and telecommunications. The money will largely come from the sale of the group's stake in Apo Cement and the Philippine Commercial International Bank. John Gokongwei, Jr., patriarch of the clan said that ""Now is the time to invest. The economy is rebounding, interest rates are at historic lows and the currency has stabilized. Conditions are in place to support sustained growth for the nation." The investment will support JG Summit's strategy of refocusing its capital and management on businesses it operates well, and can compete effectively in the face of liberalized markets and world-class competition according to Mr. John. This year alone, JG Summit's Digitel Telecommunication will spend about P4 billion to finance the increase in its fixed line network to 600,000 in Luzon. The investment will solidify Digitel's leadership in fixed lines for Luzon. For the first half of the year, Digitel reported revenues of P1.7 billion, a 24 percent increase over the previous year. Digitel is also applying for a cellular phone license from the DOTC, for which it is ready to invest an additional P6 billion. JG Summit's food subsidiary, Universal Robina Corp., is budgeting P800 million for a new facility in Calamba to expand its snack, biscuits and confectionery lines. An additional P200 million is being invested for additional pasta capacity in its Pasig plant. URC is the Philippines' dominant marketer of snacks and other convenience foods, and is likewise the largest institutional supplier of pasta. Cebu Pacific will invest P500 million over the next year to acquire two additional DC-9 aircraft from Air Canada, to beef up its fleet of twelve (12). Cebu Pacific will also start building a maintenance hangar in Cebu, a strategic move to put its Cebu hub at par with Manila. After three years of operation, Cebu Pacific is the second largest Philippine airline with 30 percent share of passengers flown in the domestic market. Cebu Pacific expects to fly its 4 millionth passenger before the end of the year. JG Summit's property arm Robinsons Land Corp., is pursuing developments in both high-rise and mall development. RLC currently has three high rise development in progress. It is working on the 5th floor of the P2.5 billion 38-storey Robinsons Place Residences residential condominium in Ermita; the 8th floor of the P2.5 billion 37-storey JG Summit Center on Ayala Avenue; and has finished the substructure of the P2 billion Galleria Hotel and Residential condominiums. The Galleria project will have 260 hotel rooms, topped by 12 floors of high-end residential units. It is located in the Galleria complex at the corner of EDSA and Ortigas Avenue. RLC is also planning seven malls at a total cost of P4 billion. Construction has started at the Robinsons mall in Los Baos which will be completed by September 2000, and both be completed by December 2001. The expansion of Robinsons Place Manila will be completed by June 2000, and the renovation of Robinsons Cebu by mid-June. Robinsons malls in Novaliches and San Fernando are expected to begin groundbreaking in the year 2000. The completion of RLC's mall construction Program will solidify RLC's position as the country's second largest mall lessor. RLC likewise announced plans to construct a hospital complex in the RLC property in Pioneer beginning the year 2000, together with foreign partners. RLC is also developing low-cost housing projects in Antipolo, Davao, Dasmarias and General Trias, both in Cavite. JG Summit likewise, indicated that it would seek approval from the Bangko Sentral ng Pilipinas for Robinsons Savings Bank to become a full commercial bank before the year-end by infusing an additional P2.5 billion in capital into RSBank. Robinsons Savings Bank will, focus on consumer credit. "The sale of Apo Cement and PCIBank have strengthened our balance sheet, and allow us the financial flexibility to expand in the business and the country we know best," Gokongwei added.