Mondragon International Philippines, Inc.

September 24, 1999 PSE CIRCULAR FOR BROKERS NO. 2406-99 SUBJECT : Mondragon International Philippines, Inc . This is with reference to a news article published in the September 23, 1999 issue of Business World, which reported that the group of Chairman and CEO Jose Antonio Gonzales has asked the Securities and Exchange Commission (SEC) to issue a temporary restraining order (TRO) barring the "newly-elected" board from holding office. Mondragon International Philippines, Inc. ("MON"), in a letter to the Exchange dated September 23, 1999 confirmed that: LexLib ". . . On 22 September 1999, Mondragon International Philippines, Inc. (MIPI) and the incumbent members of the Board filed before the Securities and Exchange Commission (SEC) a Petition against Asianbank Corporation, Far East Bank and Trust Company, United Coconut Planters Bank, Mario B. Palou, Marita Socorro D. Gayares, Miraflor Guieb, Anna Christina Vicente, George Chua, Eddie Go, Atty. Arsenio Alfiler, Ricardo Dizon and Miguelito V. Ocampo docketed as SEC Case no. 09-99-6416. The Petition, which sought the nullification of the stockholders' meeting and the election of directors which allegedly took place on 20 September 1999, prayed for the issuance of a writ of preliminary injunction and/or temporary; restraining order to prevent the respondents from exercising their supposed rights as directors. MIPI and its directors were constrained to file the Petition due to the alleged stockholders' meeting-held on 20 September 1999 by the respondents at the Ballroom of the Mondragon House wherein a new set of directors for MIPI was supposedly elected, which meeting and election of directors we vehemently condemned as wholly void, . . ." Furthermore, MON received on the same date a notice of dismissal for case no. 09-99 6412- which was filed with the SEC last September 17, 1999 by ABC, FEBTC, UCPB and some of their officers against the company. For your information. cdlex (SGD.) JOSE LUIS U. YULO, JR. President and CEO