PSE Circular for Brokers No. 2397-99

September 24, 1999 PSE CIRCULAR FOR BROKERS NO. 2397-99 September 23, 1999 Philippine Stock Exchange Disclosure Department 4th Floor, PSE Centre Exchange Road, Ortigas Center Pasig, Metro Manila Attention: Ms . Grace B . De Guia Assistant Manager Gentlemen : Reference is made to your fax message dated September 23, 1999 concerning a news article which appeared in today's issue of The Business World captioned "ALI Wants Cash, Not WPI Shares For Insular Sale". Please be advised that it was The Wellex Group, Inc., the holding company of the Wellex Group of Companies which purchased Davao Insular Hotel from Ayala Hotels, Inc. and other shareholders. The purchase of the said hotel was completed last 27 August 1999 and Ayala Hotels, Inc. was paid for in cash. As we have earlier disclosed to your office, it is in the intention of The Wellex Group, Inc. to vend-in she shares of Davao Insular to Waterfront Philippines, Inc. in exchange for shares of WPI. We trust that the foregoing sufficiently clarifies the news article. Very truly yours, WATERFRONT PHILIPPINES, INC. By: (SGD.) ARTHUR R. PONSARAN Corporate Secretary