PSE Circular for Brokers No. 2502-99

October 4, 1999 PSE CIRCULAR FOR BROKERS NO. 2502-99 October 4, 1999 PHILIPPINE STOCK EXCHANGE, INC . 4th Floor, Philippine Stock Exchange Center Pasig City Attention: Ms . Grace B . de Garcia Assistant Manager Disclosure Department Gentlemen: This is in reference to your inquiry via fax about the news article captioned "Mondragon talks with US trust fund on P7-B debt" published in today's issue of the Business World. In response to your questions we wish to say that: 1. We are presenting to an international trust who specializes in refinancing and has approved 28 of 30 applications this year thus far, who are headquartered in Southern California and whose funding totals approximately US$30 Billion our need to repay our creditors over the next few years and some additional project funding needs. We regret that because we have signed a confidentiality agreement through their authorized representative, we cannot identify them by name. The refinancing portion is a US$150 Million and the additional US$50 Million is for project development construction finance. 2. A copy of the letter from Ideal Funding is enclosed. 3. Mr. Rufo Colayco, President of Clark Development Corporation is very desirous of seeing the government agencies get paid whatever is rightfully owed to them. Therefore, he supports the opening of be Mimosa Regency Casino for this to be made possible. It must be emphasized that PAGCOR is not in a position to stop this since the ongoing disputes with PAGCOR are still in court and the Angeles Regional Trial Court restored the permit which Mondragon used from April 1998 after PAGCOR attempted to close the Casino, until December 1998 when CDC, not PAGCOR, closed the Casino. Hope the foregoing meet your requirements. Very truly yours, (SGD.) PIERRE PAUL S. BUHAY Comptroller September 30, 1999 Mr. Jose Antonio Gonzales Chairman and CEO Mondragon International Philippines Dear Mr. Gonzales: This letter will serve to express my company's interest in working with Mondragon International with regard to its Mimosa development. We are an independent representative for the first (illegible portion in Philippine Stock Exchange file) Group ("FNG") providing assistance to companies seeking Structured Debt Financing for projects worldwide. We look forward to assisting you in your project funding efforts. I understand that Messrs. Brian and Bruce Tulloch of Resort Suites International ("RSI") have advised on the initial Private Trust requirements for establishing a funding relationship. I also understand that RSI is assisting Mondragon International with the preparation of business plans and project funding request. I have no doubt you will find RSI's assistance to be most valuable in this regard . Mr. Brian Tulloch also informs me that you will be visiting the US in October. We will attempt to arrange a conference call with Mr. Robert (illegible portion in Philippine Stock Exchange file), Managing Director of (illegible portion in Philippine Stock Exchange file), while you are here or perhaps a visit by you to Mr. (illegible portion in Philippine Stock Exchange file) office in Massachusetts, if feasible. We will also attempt to arrange for you to contact a Los Angeles client of the Trust to briefly discuss how the funding process has developed on his project and his satisfaction with the Trust and process to date. After a business plan has been submitted and reviewed, normally a Letter Of Intent ("LOI") on promising projects is issued within 7 to 10 business days. Thereafter, the next step would be the execution of the LOI, after which a "Term Sheet" would be issued along with a list of references and funded projects for your review and research. After issuance of the Term Sheet you will be invited to meet personally with the Trust Directors in California to discuss any remaining matters before proceeding. I look forward to working with you and Mondragon International on both current and future projects. Sincerely, (SGD.) LEONARD M. KOLAKOWSKI For Ideal Funding, Inc .