Mondragon International Phils., Inc.

September 2, 1999 PSE CIRCULAR FOR BROKERS NO. 2204-99 SUBJECT : Mondragon International Phils ., Inc . In reply to the Exchange's query regarding the unusual price movement in the trading of Mondragon International Phils., Inc. ("MON") shares on September 1, 1999, the company explained that: "As previously disclosed with the Exchange, . . . under the terms of the Compromise Agreement, the final day for Mondragon Leisure & Resorts Corporation ("MLRC") to comply with puffing up of the required Letter of Credit in favor of Clark Development Corporation ("CDC") was on the deadline set therein. Mondragon filed a motion on August 27, 1999 with the Supreme Court asking for the extension of the period within which to comply with the -requirements of the Compromise Agreement which the High Court on its resolution dated August 30, 1999 resolved to note without the action. On the other hand, Clark Development Corporation (CDC") has filed a motion of execution with the Supreme Court which our company has opposed and which the High Court has not acted upon yet. On the matter of the unusual movement in the trading of Mondragon stocks yesterday, September 1, 1999, the company believes that it was-caused by the reaction of the investing public on the present situation Mondragon is currently in." prcd For your information. (SGD.) ATTY. RUBEN L. ALMADRO Officer-in-Charge