Asian Pacific Equity Corporation

August 26, 1999 PSE CIRCULAR FOR BROKERS NO. 2133-99 SUBJECT : Asian Pacific Equity Corporation This is with reference to a news article published in the August 25, 1999 issue of the Business World, which reported that Asian Pacific Equity Corporation ("APEC") is eyeing P290 million in net income this year and is in search of a strategic partner which could contribute "both investment and technology" to the company. APEC, in a letter to the Exchange, explained that: ". . . the rationale for the proposed increase in capital is to enable the Corporation to acquire Tanduay Distillers, Inc. (Tanduay). Cited as one of the reasons for acquiring Tanduay was its impressive financial performance in recent years. The audited financial statements of Tanduay as of 31 July 1999 showed a net income of P176 Million. Historically, Tanduay is able to generate more than double its midyear income by year's end due to the holidays. Hence, it is projected that Tanduay will post a net income of P290 Million by the end of 1999. Anent the search for a strategic partner for Tanduay, the said comment was made in reply to queries whether the Corporation was open to the possibility of the same. As explained, the Corporation is open to any discussions for strategic partnership. There is at present, however, no firm discussions or negotiations with any party for this purpose." For your information. (SGD.) ATTY. RUBEN L. ALMADRO Officer-in-Charge