PSE Circular for Brokers No. 2486-99

October 4, 1999 PSE CIRCULAR FOR BROKERS NO. 2486-99 METRO PACIFIC TO ISSUE 3-YEAR CONVERTIBLE NOTES FOR NENACO DEBTS Metro Pacific Corporation announced today that it will issue Pesos 1.3 billion in three-year convertible notes to certain creditors of Negros Navigation Company (Nenaco) as part of the latter's program to improve its debt profile. The notes will carry a 9.5 per cent coupon payable semi-annually in arrears and in cash; the conversion price has been fixed at Pesos 2.2455 per share. cdll The proceeds of the Convertible Notes are to be advanced in full to Nenaco and. in turns used to pay down its debts. The debt swap reinforces Metro Pacific's commitment to Nenaco and its ongoing efforts to transform its shipping subsidiary into a financially and operationally sound business amid a highly competitive environment, particularly in the conventional coastwise ferry sector which provides for both cargo service, and a passage service for up to 1,800 to 2,000 passengers per ship. The issue will have no impact on Metro Pacific's consolidated debt position, but will significantly enhance Nenaco's balance sheet. For further details please contact: Mr. Ian Christopher Wilson Chief Financial Officer Metro Pacific Corporation Telephone No: 810-53-45 Ms. Corazon P. Guidote Group Vice President, Corporate Communications and Investor Relations Metro Pacific Corporation Telephone No.: 811-0367; 811-0055 cdlex