PSE Circular for Brokers No. 220-99

February 5, 1999 PSE CIRCULAR FOR BROKERS NO. 220-99 Philippine Stock Exchange Ms. Grace de Guia PSE Center, Exchange Road Ortigas Center, Pasig City Gentlemen : This is in response to your telephone directive to clarify the news article entitled "Ayala Corp's '98 income seen to have fallen 14.2%" appearing in the Manila Times issue of today, 05 February 1999. In connection therewith, please be informed that the audited consolidated financial statements of the Company have not been completed and, therefore, the conclusions drawn from the aforesaid article are still speculative. We wish to restate, however, that during the first 9 months ending September 1998, Ayala posted a consolidated net income of P5.29 billion, up from P5.24 Billion in the same period in 1997. Judging from the 3 rd quarter performance the Company recorded a modest profit growth. In due course, the 1998 performance will be reported to the PSE and SEC as soon as the audited financials are available. aisadc Thank you. Very truly yours, (SGD.) RENATO O. MARZAN Managing Director