PSE Circular for Brokers No. 2259-99

September 10, 1999 PSE CIRCULAR FOR BROKERS NO. 2259-99 September 9, 1999 Philippine Stock Exchange Listing and Disclosure Group 4th Floor, Philippine Stock Exchange Centre Exchange Road Ortigas Center, Pasig City Attention: Grace B . De Guia Asst . Manager Gentlemen / Mesdames: We refer to your fax of September 9, 1999 requesting clarification and confirmation of a news article entitled "Holding company's cash hoard nears P8B". In this connection, please note that the proceeds from the issuance of the global depository receipts (GDRs) worth $72M and sale of Meralco Class "B" shares were invested in the company's power and energy businesses, including additional equity infusion completed by the end of this year in First Gas Holdings Corp. for the Sta. Rita, Batangas City gas power generation projects, and acquisition of Meralco Class "A" shares through First Philippine Union Fenosa Corp. The matter of the possible foreign ownership stake in First Generation Holdings has been explained in the past as not yet proper for disclosure. So is any plan for possible acquisition of power generation companies (gencos) of the National Power Corp. once privatization is legally effective. cdlex The cash position of First Philippine Holdings Corp., the parent company, as of the end of the fiscal year is around P2B. Very truly yours, (SGD.) ERNESTO B. RUFINO Corporate Information Officer