PSE Circular for Brokers No. 2392-99

September 23, 1999 PSE CIRCULAR FOR BROKERS NO. 2392-99 Philippine Stock Exchange Philippine Stock Exchange Centre Ortigas Center Pasig City Attention: Ms . Grace B . De Guia Asst . Manager, Disclosure Department Gentlemen : This refers to your request for clarification/comments on the news article appearing in the September 23, 1999 issue of Business World. With respect to the first item in the news article dealing with the sale of Davao Insular Hotel, please note that, as stated in our letter to you dated July 19, 1999, the sale was transacted between The Wellex Group and Ayala Hotels Inc. not Ayala Land. Ayala Hotels Inc. is a 50% owned subsidiary of Ayala Land and since it is not listed in the Philippine Stock Exchange, Ayala Hotels is not subject to disclosure rules. However to put this matter at rest, please note that the sale between Ayala Hotels and The Wellex Group has been consummated last month as a cash sale. With respect to the second item in the news article dealing with the impact of the closure of the Magallanes to Ayala Center route, please be advised that based on our understanding of the current general agreement reached among DPWH, DOTC and MMDA: 1. There will be no complete closure of EDSA between the Magallanes interchange and Ayala Avenue.. What will be closed from November 1999 to February 2000 will only be the northbound direction of EDSA just after the Magallanes interchange to the north up to Ayala Avenue. 2. The southbound direction of EDSA between Ayala Avenue and the Magallanes interchange will always remain open to traffic and, in addition, will have a new vehicular tunnel that will allow traffic to flow in both directions of EDSA. Both directions of EDSA. in Makati City beside Ayala Center will remain passable to traffic in both directions. The news article also provides estimates of "foregone revenue of as much as P120 million this year and to increase to P256 million next year with the planned road closure". In this regard, Ayala Land does not issue any income and sales forecasts and estimates and does not comment on the forecasts and estimates prepared by "industry observers" because of the possible speculative nature of these forecasts and estimates. Very truly yours, (SGD.) JAIME E. YSMAEL Vice President and Comptroller