PSE Circular for Brokers No. 2391-98

October 19, 1998 PSE CIRCULAR FOR BROKERS NO. 2391-98 JOLLIBEE CLARIFIES POSITION ON RSBS Publicly-listed company Jollibee Foods Corporation recently clarified its position in the on-going Senate inquiry of deals entered into by the Armed Forces of the Philippines Retirement and Separation Benefit System (AFP-RSBS). News reports named Jollibee as one of the beneficiaries of loans extended by RSBS to local companies in recent years. However, Jollibee clarified that in 1995, it purchased a piece of commercial property for a Jollibee store site from RSBS property development in Sta. Rosa, Laguna. The purchase agreement stipulated that Jollibee pay a downpayment of 50% of the purchase price with the balance, including interests, payable in five years. Moreover, the Company clarified that it has since fully paid the remaining balance of the amount as of July of this year. "We no longer have any outstanding balance with RSBS as these have been fully paid as of July this year," said Raffy dela Rosa, Jollibee Vice President for finance. LLjur