Centennial City, Inc.

September 2, 1999 PSE CIRCULAR FOR BROKERS NO. 2203-99 SUBJECT : Centennial City, Inc . In reply to the Exchange's query regarding the news article captioned "Centennial City starts loan restructure talks with PNB" published in the August 30, 1999 issue of the Business World which reported that Centennial City, Inc. ("CCI") is negotiating to restructure P600 million of its loans with state-run Phil. National Bank ("PNB") possibly through longer repayment terms or through payment of secured property, CCI, in a letter to the Exchange, stated that: ". . . As reported in our annual financial report of 1998, our outstanding loans with creditor banks stand at approximately P1.790 Billion. Negotiations with banks to retire portions of these loans are still on going and nothing has been finalized as of this date. CCI plans to start the development of the Centennial City this year or early next year. Planning and necessary preparations are still on going in anticipation of the commencement of works at Project site. . . " CCI, further clarified a statement in the same news article pertaining to the amended joint venture between Amari and PEA saying that under the terms of the new accord, the government will be getting 30% from the sales proceeds of the project from the original 20% and that PEA will take up 80% equity in the project: prcd ". . . PEA, as an essential part of its contribution to the joint Venture, designated Amari, to perform PEA's rights and privilege to reclaim, own and develop the Reclamation Area. On the other hand, Amari shall contribute the financial. technical, logistical, manpower, personnel and managerial requirements of the project, with the view of dividing the Joint Venture Proceeds at the ratio of thirty percent (30%) for PEA and seventy percent (70%) for Amari. Under the Joint Venture Agreement, PEA does not take up 80% equity in the project. In the event PEA withdraws from the project and Amari is prevented from completing the Rawland Reclamation and/or Horizontal Development of the project, without prejudice to any other rights which Amari may have under applicable law, PEA shall reimburse Amari all expenses incurred so far. . . ." Moreover, CCI stated that contrary to another statement made in the said news article, Amari will not acquire any property from PEA nor pay the amount of P87 Billion to PEA. Amari's share comes from the proceeds of the joint venture described above. CCI also added that Amari will develop socialize housing units in support of the President's-Housing Program for the poor. The squatters relocated from the project site have been and are being relocated to Pabahay 2000 Projects of the PEA and other relocation sites that were earlier developed. For your information. (SGD.) ATTY. RUBEN L. ALMADRO Officer-in-Charge