Fil-Estate Corporation

September 24, 1998 PSE CIRCULAR FOR BROKERS NO. 2212-98 SUBJECT : Fil-Estate Corporation Fil-Estate Corporation ("FC") confirmed to the Exchange a news article published in the September 18, 1998 issue of Manila Times, which reported of the proposed securitization of Fil-Estate Management, Inc.'s interest in the EDSA Metro Rail Transit (MRT) project. cdlex FC furnished the Exchange a copy of the letter sent to the company by Fil-Estate Management, Inc. dated September 21, 1998 which is hereunder quoted: ". . . We confirm that Fil-Estate Management, Inc., a privately-held entity which spearheaded the consortium of Filipino companies undertaking the Project, initiated a study on the eventual securitization of the consortium members' expected dividend flows from the Project. Securitization generally involves the monetization of future cash flows without alienating the proponent's ownership interest in the Project. Inasmuch as the Project provides the Proponents with reasonably certain dividend flows during the 25-year Build-Lease-Transfer (BLT) contract period, certain investors may invest in financial instruments that effectively capture the present value of cash flows associated with the Project. We wish to state likewise that the securitization initiative is still subject to the completion of a viable structure acceptable to international and local underwriters. . ." For your information. (SGD.) REYNOLD P. ONG Vice-President, Listings and Disclosure Group