Keppel Philippines Holdings, Inc.

October 13, 1998 PSE CIRCULAR FOR BROKERS NO. 2357-98 SUBJECT : Keppel Philippines Holdings, Inc . With reference to the attached letter of Keppel Philippines Holdings, Inc. ("KPH") to the Stockholders of Keppel Philippines Properties, INC. ("KEP"), formerly Cebu Shipyard & Engineering Works, Inc., dated 17 September 1998, relative to the corporate restructuring of the Keppel Philippines Group of Companies, KPH confirmed to the Exchange that the Offer Period for the share-for-share swap be from 17 September 1998 up to and until 5 : 00 p . m . of 02 November 1998 . cdlex For your information. (SGD.) JOSE LUIS U. YULO, JR. President and Chief Executive Officer 17 September 1998 Dear Stockholder of Cebu Shipyard & Engineering Works, Ref: Keppel Philippines Holdings, Inc.'s Offer to Exchange its Shareholdings in Keppel Philippines Marine, Inc. (formerly Kepphil Shipyard, Inc.) with Minority Stockholders of Cebu Shipyard & Engineering Works, Inc. Please be informed that at the Annual General Meeting of the Stockholders of Keppel Philippines Holdings, Inc. (KPH) held on 23 May 1998, the stockholders thereof have approved the participation of KPH in the corporate restructuring of the Keppel Philippines Group of Companies. In line with the said corporate restructuring, KPH is herein offering to exchange your shareholdings of record as of 29 May 1998 in Cebu Shipyard & Engineering Works, Inc. (CSEW) for KPH's shares of stock in Keppel Philippines Marine Inc. (formerly Kepphil Shipyard, Inc.) The share-for-share swap would be at a ratio of 3.4 Keppel Philippines Marine (KPM) shares for every 1 CSEW share. Share of CSEW acquired or sold after the record date will not be entitled to the exchange. The Offer Period for the share-for-share swap is from 17 September 1998 up to and until 5:00 p.m. of 2 November 1998. Enclosed herewith is a printout from the records of the Stock and Transfer Agent, Security Bank Corporation indicating the number of shares registered in your name as of 29 May 1998 and the number of shares which you may be entitled to exchange under the share-for-share swap. You may exchange all or part of your shares in CSEW for shares of KPM. LLpr As the exchange of the shares shall be transacted through the Philippine Stock Exchange, you shall be the sales tax for your shares of CSEW and the documentary stamps tax for the exchange shares of KPM. Please signify your consent to avail of the share-for share swap by returning to us the enclosed form duly signed, together with your original stock certificates duly endorsed to Keppel Securities Philippines, Inc. and send to the office of our Stock & Transfer Agent at: Trust Division Security Bank Corporation 6th Floor, Security Bank Centre 6776 Ayala Avenue, Makati City Philippines or at: Cebu Shipyard & Engineering Works, Inc. Dad Cleland Avenue, Lapu Lapu City Cebu, Philippines Attention: Mr. Alex Cheng Your shares of CSEW lodged with your own stock broker may likewise be delivered to us for exchange via the Equity Trade facility (EQ Trade). Please signify your intention to avail of the swap via an EQ Trade transfer by returning to us the enclosed form duly signed, together with a copy of your letter advising your stock broker to executive an EQ trade made in favor of the following: Keppel Securities Philippines, Inc. 309 Peninsula Court Building Paseo de Roxas corner Makati Avenue Makati City 1226 Philippines ( Illegible portion of PSE file ) your conforme along with the stock certificate and/or ( Illegible portion of PSE file ) by 5:00 p.m. on 2 November 1998, we will assume that you are not going to ( Illegible portion of PSE file ). We advise that you send your conformity at the earliest possible time. Thank you. LibLex Should you have any questions, please feel free to contact our Mr. Kevin Chee at Tel. No. (632) 892-1816 or Mr. Lee Wee Khiam of Keppel Securities Philippines, Inc. at Tel. No. (632) 812-2956. Very truly yours, By Keppel Philippines Holdings, Inc. (SGD.) MA. MELVA E. VALDEZ Corporate Secretary