Acesite (Philippines) Hotel Corporation

September 24, 1998 PSE CIRCULAR FOR BROKERS NO. 2211-98 SUBJECT : Acesite (Philippines) Hotel Corporation Acesite (Philippines) Hotel Corporation. ("DHC") informed the Exchange, in a letter dated September 22, 1998, that the company will abide by the Securities and Exchange Commission's (SEC) decision to hold in abeyance the processing of its 25% stock dividend declaration pending compliance with the earnings provision of Section 43 of the Corporation Code. prLL DHC requested the SEC for an exemption from registration of securities for the issuance of 19,970,461 common shares representing the 25% stock dividend declared by its Board of Directors on July 15, 1998 and payable to stockholders of record as of July 29, 1998. However, the SEC in its letter to DHC dated September 21, 1998 and upon review of its request explained that: ". . . Our review of the foregoing request disclosed that as of June 30, 1998 the company has a deficit of P31,625,486.00. Section 43 of the Corporation Code provides: 'the Board of Directors may declare dividends out of the unrestricted retained earnings which shall be payable in cash, in property or in stock to all stockholders on the basis of outstanding stock held by them. . ." DHC will announce further developments on the foregoing matter. For your information. (SGD.) REYNOLD P. ONG Vice-President, Listings and Disclosure Group