PSE Circular for Brokers No. 2423-99

September 27, 1999 PSE CIRCULAR FOR BROKERS NO. 2423-99 PHILIPPINE STOCK EXCHANGE, INC. 4th Flr., PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Luisa Buenaventura Supervisor, Disclosure Department RE : Asianbank Corp., et al., Mondragon, et al. SEC Case No. 09-99-6412 Gentlemen: This is in connection with your verbal inquiry as to the status of the above entitled case filed before the Securities and Exchange Commission ("SEC"). On 17 September 1999, Asianbank Corporation, Far East Bank & Trust Company, United Coconut Planters Bank, Marita Socorro D. Gayares, Milaflor S. Guieb, and George S. Chua filed before the SEC a Petition against Mondragon International Philippines, Inc. ("MIPI"), Jose Antonio Gonzalez, Antonio M. Garcia, Faustino S. Roberto, Dulce Q. Saguisag, Mercedes U. de Gonzalez, Fernando Y. Adrias, Luis P. Lorenzo, Jr., Ma. Cristina M. Millan Basil L. Ong, Godofredo A. Alvero, Jr. and Mondragon Securities Corporation, docketed as SEC Case No. 09-99-6412. LibLex The Petition, which was for mandamus and injunction with a prayer for the issuance of a writ of preliminary injunction and a writ of preliminary mandatory injunction with temporary restraining order, prayed for the issuance of a temporary restraining order immediately upon the filing of the petition in order to enjoin the respondents (MIPI and the board of directors) or any person acting for and on their behalf from taking any steps. 1. to effect the postponement and/or rescheduling. of the Annual Meeting slated on 20 September 1999 including acts/omissions inconsistent with and/or contrary to the rights of Petitioners and Shareholders arising from the Corporation Code and Amended Omnibus Agreement; and 2. preventing the exercise by the Petitioners and Shareholders of their voting rights arising from the Corporation Code and Amended Omnibus Agreement. The petition also prayed that the respondents (MIPI ad the Board of Directors) be compelled to: 1. respect the voting rights of the Petitioners and Shareholders arising from the Corporation Code and Amended Omnibus Agreement. 2. push through with the scheduled annual stockholders' meeting of MIPI on 20 September 1999; and 3. comply with any and all orders issued by the Honorable Commission for the protection of the rights of the Petitioners and Shareholders' including but not limited to that which directs the holding of the annual stockholders' meeting of MIPI on any other date, time and place as may be determined by the Honorable Commission. The Petitioners likewise prayed that the respondents be ordered to pay the amount of One Million Pesos (P1,000,000.00) as and for attorney's fees, litigation expenses and costs. On 23 September 1999, a hearing had originally been scheduled for the raffle and hearing of the application for a Preliminary Injunction. Prior to hearing, however, creditor banks filed a Notice of Dismissal dated 22 September 1999. During the hearing scheduled for 23 September 1999, Director Daisy Besa De Asis of the Securities Investigation and Clearing Department("SICD") of the SEC required the petitioners to file a motion to dismiss in order to formalize the dismissal of the case. The counsel for the petitioners thereafter manifested that they would instead file a motion to withdraw petition. Said motion, according to Director De Asis. weed not be set for hearing. Petitioners motion to withdraw petition was subsequently filed on 24 September 1999. Petitioners having complied with the Director De-Asis' directive, the case has now been officially closed. We trust you find our foregoing explanation in compliance with your requirements. Very truly yours, (SGD.) PIERRE PAUL S. BUHAY Acting Corporate Secretary