Hi Cement Corporation

September 15, 1999 PSE CIRCULAR FOR BROKERS NO. 2314-99 SUBJECT : Hi Cement Corporation Hi Cement Corporation ("HCC") informed the Exchange that its Board of Directors, at a regular meeting held on September 14, 1999, adopted a Plan of Merger among HCC, Bacnotan Cement Corporation ("BCC") and Davao Union Cement Corporation ("DUC"), subject to approval by the shareholders at their annual meeting to be held on November 23, 1999. Attached is a copy of the Plan of Merger. The Board of Directors also approved the increase in the authorized capital stock of HCC from P4,270,000,000.00 to P10,000,000,000.00, the increase to consist of 5,730,000,000 common shares, subject likewise to approval by the shareholders at their annual meeting. In view thereof, the Exchange has granted the company's request for voluntary suspension of trading of its shares today, September 15, 1999. For your information. (SGD.) JOSE LUIS U. YULO, JR. President and CEO