PSE Circular for Brokers No. 2431-98

October 26, 1998 PSE CIRCULAR FOR BROKERS NO. 2431-98 October 23, 1998 PHILIPPINE STOCK EXCHANGE 4/F Philippine Stock Exchange Center PSE Center, Exchange Road Ortigas Center, Pasig City Fax No. 634 2051/636 0809 Attention: Listings & Disclosure Department Gentlemen : With reference to the news articles insinuating that Mabuhay Vinyl Corporation is on the brink of closure which appeared in various newspapers like Manila Bulletin and the Daily Inquirer on 22 October 1998. Mabuhay Vinyl Corporation (MVC) would like to clarify the following: 1. Contrary to what the articles were saying MVC is not in the brink of closure. In fact it is pursuing actively its plans in PVC downstream by way of its equity participation in a PVC Compounding Project at the Lima Technology Center. Another major investment is its 49% equity participation in a soon to operate world-scale PVC plant (70,000 MTPY capacity) in Bataan which is 90% complete as of September 1998. 2. MVC is a multi-product company, apart from caustic and polyvinyl chloride, it also produces liquid chlorine, hydrochloric acid, sodium hypochlorite and has started to sell other related products. As of June this year the company generated revenues of P651 million compared to P630 million recorded during the same period last year. aisadc 3. MVC operations are continuing driven by the demands of the market. Company is continuously taking steps to capture bigger market share and to improve its competitiveness. Very truly yours, (SGD.) EDWIN LI. UMALI Chief Operating Officer