PSE Circular for Brokers No. 2378-98

October 16, 1998 PSE CIRCULAR FOR BROKERS NO. 2378-98 October 15, 1998 Disclosure Department Listings and Disclosure Group 4/F Philippine Stock Exchange Centre PSE Center, Exchange Road Ortigas Center, Pasig City FAX No. 634-2051/634-5113 Attention: Mr . Reynold P . Ong Vice-President, Listings & Disclosure Group Gentlemen : Please be informed that in the regular meeting of the Board of Directors of III Cement Corporation held today, the Board of Directors approved the following: 1. Subject to approval by the shareholders, the increase in authorized common capital stock of the corporation from P1,225 billion in P4,250 billion consisting of 3,025 billion common shares at the par value of P1.00 per share; 2. Subject to approval by the shareholders and by the Securities and Exchange Commission, the amendment of Article Seventh of the Amended Articles of Incorporation to reflect the aforesaid increase, after which a primary offering of common stock to raise approximately P1.60 billion will be implemented; prLL 3. Subject to approval by the shareholders, the creation of convertible debt instruments in the total aggregate amount of approximately P700 million under such terms and conditions as Management may deem appropriate in the best interests of the corporation; 4. Subject to approval by the shareholders, the renewal of the Management Contract with Philippine Investment-Management Consultants (PHINMA), Inc. for a period of five years from the start of the current fiscal year. Very truly yours, (SGD.) JUAN J. DIAZ Corporate Secretary