Ortigas Center, Pasig City

September 10, 1999 PSE CIRCULAR FOR BROKERS NO. 2268-99 September 10, 1999 PHILIPPINE STOCK EXCHANGE INC . PSE Centre, Exchange Road Ortigas Center, Pasig City Attention: Ms . Luisa W . Buenaventura Supervisor - Disclosure Department Gentlemen: This is with reference to your inquiry about the news article captioned "SC upholds Clark takeover of Mimosa" published in today's issue of the Manila Standard. The Supreme Court, in issuing an entry of judgment, affirmed the Compromise Agreement between Mondragon and CDC. It is Mondragon's position that a can still perform its financial obligations to the government under the Compromise Agreement considering that the said Agreement provides that Mondragon has until June 30, 2000 to pay in full the P325 million. As regards to the reported planned take over of CDC, they cannot do so since the Supreme Court did not issue a Writ of Execution. Assuming CDC pursues any move to secure a Writ of Execution in the lower court, it is very doubtful if a Writ of Execution can legally be issued. In the meantime, Mondragon is now finalizing arrangements for the entry of a local and foreign investor into Mondragon and the subsequent re-opening of the Mimosa Regency Casino. Mondragon is also exerting utmost effort to finalize arrangements for the settlement of its obligations to the government at the soonest possible time. Hope the foregoing meet your requirements. Very truly yours, (SGD.) PIERRE PAUL S. BUHAY Financial Comptroller