PSE Circular for Brokers No. 2225-99

September 6, 1999 PSE CIRCULAR FOR BROKERS NO. 2225-99 Philippine Stock Exchange Inc 4th Floor, Philippine Stock Exchange Centre, Exchange Road, Ortigas Centre, Pasig City Attention: Ms . Grace B . De Guia Assistant Manager, Disclosure Department Gentlemen: We refer to your fax dated today requiring us to confirm or clarify the news article that appeared in today's issue of the Business World entitled "C&P Seen to Restructure P3 Billion Debts by Yearend." In its stockholders' meeting held last Friday, September 3, the Company stated that as part of its overall strategy to improve its finances, the Company continues to negotiate with its creditor banks to rationalize its debt level through sales of real estate and other measures. The Company said that the favorable reception given by creditor banks to its various proposals has been encouraging. The Company, however. could not at this time give an estimate of the amount of the affected debts or of when the arrangements would be finalized, as the Company does not want to pre-empt the decision of the banks it is currently negotiating with. During last Friday's stockholders' meeting, stockholders who own at least two-thirds of the outstanding capital stock of the Company approved the recommendation of the Board of Directors of the Company to increase the Company's authorized capital stock from P5 Billion to P15 Billion. No other significant matter not previously disclosed has been taken up in said stockholders' meeting. Our Corporate Secretary is currently preparing the minutes of the stockholders' meeting and we will provide your office a copy of said minutes in due course. We trust that the foregoing sufficiently addresses your concerns. Very truly yours , (SGD.) CYNTHIA DELFIN-CRUZ Chief Information Officer