Mondragon International Phils., Inc.

August 31, 1999 PSE CIRCULAR FOR BROKERS NO. 2176-99 SUBJECT : Mondragon International Phils . , Inc . In reply to the Exchange's query regarding the news articles published in the August 31, 1999 issue of the Philippine Daily Inquirer and Business World which reported that Clark Development Corp. (CDC) asked the Supreme Court (SC) for immediate withdrawal of Mondragon Leisure and Resorts Corp. (MLRC) from the leisure estate because of the latter's failure to meet the August 28 deadline to pay its P325-million back rentals to CDC and that yesterday, SC refused to accommodate the request of MLRC to give it more time fulfill its financial obligation to the government, Mondragon International Phils., Inc. (MON), in a letter to the Exchange, stated that: "Under the terms of the Compromise Agreement, the final day for Mondragon Leisure & Resorts Corporation (MLRC) to comply with putting up of the required Letter of Credit in favor of Clark Development Corporation (CDC) was on the deadline set therein. However, Mondragon filed a motion on August 27, 1999 with the Supreme Court for the extension of the period within which to comply with the requirements of the Compromise Agreement which the Supreme Court resolved to note without action. Meanwhile, today, August 31, 1999, Mondragon is filing a motion for reconsideration with the Supreme Court. While awaiting decision on our said motion for reconsideration and in order to protect the interest of the investing public, our Company requests that there be a temporary halt on the trading of Mondragon stocks for at least two (2) trading days until the situation have been clarified." The Exchange has granted MON's request for a two-trading day suspension. Today, August 31, 1999, is MON's second day of suspension considering that MON's shares were already put on a trading halt yesterday, August 30, 1999. The suspension of MON's shares will be lifted tomorrow, September 1, 1999. For your information. (SGD.) ATTY. RUBEN L. ALMADRO Officer-In-Charge