PSE Circular for Brokers No. 2119-98

September 11, 1998 PSE CIRCULAR FOR BROKERS NO. 2119-98 Nenaco and Aboitiz/Parkview Groups Merge Philippine Fast Ferry Operations Negros Navigation Company, Inc. (Nenaco, a subsidiary of Metro Pacific Corporation), and Aboitiz Parkview Transport Holdings, Inc. (APTH, a joint venture between Aboitiz Transport Systems, Inc. ATSI and The Hong Kong Parkview Group Ltd.) have agreed to merge their respective fast ferry operations. The expanded entity, which will assume the ownership of both the fast ferry operations of "Sea Angels" of Nenaco and "Super Cats" of APTH, will emerge as the largest operator in the fast ferry sector in the Philippine Islands. It will have a total fleet size of 12 vessels valued at approximately Pesos 1.7 billion. The combination is envisaged to allow the enlarged venture to benefit from economics of scale, while also achieving higher service efficiencies to the riding public in a highly competitive business. The combined operations will be 50% owned by Nenaco and 50% by APTH. It will service the short routes, particularly in the Visayas region, that can not be serviced efficiently by airlines either due to lack of economic value or the absence of adequate airport facilities. These routes currently cover the ports of Bacolod, Iloilo, Cebu, Ormoc, Dumaguete, Tagbilaran, Batangas, Calapan, Tubigon, Milongos, and Camiguin. More routes are likely to be developed as the merger will provide greater flexibility in planning trips and schedules. prcd The merger brings together the pioneers in the fast ferry industry which share a similar philosophy and possess and wealth of experience in the shipping industry. "Super Cats" and "Sea Angels" have each developed a reputation for providing fast and reliable services, with a focus on safety and quality required by the passengers. The merged operations will benefit from the international expertise of the Parkview group, and the local knowledge and support of Nenaco and ATSI. For further information, please contact: Mr. Manuel L. Garcia President & COO Tel. No. (63-34) 433-6046 Negros Navigation Co., Inc. Mr. John Warbey Executive Vice President Tel. No. (852) 2810-5511 Parkview Transportation Ltd Mr. Ernest Villareal Director Tel. No. (632) 832-0280 Aboitiz Transport System, Inc.