PSE Circular for Brokers No. 2307-98

October 5, 1998 PSE CIRCULAR FOR BROKERS NO. 2307-98 October 2, 1998 FAX FOR: ATTY . RUBEN L . ALMADRO Vice President Compliance & Surveillance Group Philippine Stock Exchange, Inc. MS . JANET CLOSA Head Compliance & Surveillance Group Philippine Stock Exchange, Inc. MR . CYRUS VALERIANO Compliance & Surveillance Group Philippine Stock Exchange, Inc. Tel. Nos.: 635 2711 636 0122 to 41 loc. 704 Fax No.: 636 0809 / 637 8811 FROM : Atty. Tadeo F. Hilado Corporate Secretary VITARICH CORPORATION This refers to your fax letter of 30 September 1998 which requests VITARICH CORPORATION ("VITA") to "furnish the Exchange any information relating to the unusual movement in trading" of VITA shares on September 30, 1998, and that if VITA is "unaware of any such information, to please also advise the Exchange of the same." On 26 March 1998, we disclosed to the SEC and the Exchange the VITA shareholders' approval of the Mortgage Trust Indenture executed by VITA in favor of its creditor banks, with the Philippine Commercial Industrial Bank as trustee. (A copy of the said disclosure is attached hereto.) This Mortgage Trust Indenture is part of the debt rehabilitation plan being negotiated by VITA with its creditor banks. The final terms of the rehabilitation plan, which a majority of the creditor banks have substantially agreed to, are now being documented, after which the creditor banks and VITA are expected to sign the debt restructuring agreements. This development, although not yet final in the sense that the restructuring agreements have not been signed, may have been related to the unusual movement in the trading of VITA shares you have referred to. dctai Please be advised also that VITA and other chicken integrators have on some occasions discussed the idea of getting together for the purpose of reducing operating expenses and controlling the costs of chicken production in order to keep the prices of chicken stable and affordable. Such idea, however, is only an option at this time, and nothing definite has been concluded regarding the proposal. We trust that the above is sufficient for your purposes. (SGD.) TADEO F. HILADO