PSE Circular for Brokers No. 251-00

February 3, 2000 PSE CIRCULAR FOR BROKERS NO. 251-00 February 2, 2000 SBMA, ICTSI, RPSI ink agreement The Subic Bay Metropolitan Authority (SBMA), International Container Terminal Services, Inc. (ICTSI), and Royal Ports Services, Inc. (RPSI) yesterday signed a concession agreement for the management, operation and development of the Naval Supply Depot (NSD Area) at the Subic Bay Freeport. LibLex Under the agreement, the parties, through a joint venture company (JVC) to be composed of the SBMA and a single-purpose holding company to be established by ICTSI and RPSI, agreed to undertake marine cargo handling and marine container handling services within the NSD Area at the Subic Bay Freeport Zone. The JVC that will operate the concession will be controlled by the ICTSI / RPSI joint venture company, which will own 85 per cent of the equity of the JVC. The SBMA will own the remaining 15 per cent. The concession granted to the JVC under the agreement will serve as an interim arrangement until the pending cases relating to the public bidding of the concession for the Subic Bay International Container Terminal are resolved. Under the agreement, the JVC's concession rights over the NSD Area will remain subordinate to the final resolution of these pending cases. In the meantime, the JVC will develop the NSD Area into a common-user, multi-purpose terminal, providing on-dock and off-dock marine port cargo and container handling services. Under the agreement, ICTSI and RPSI, through its joint venture company, shall invest between PhP250 million to PhP300 million for civil works and new equipment for the operations at the NSD Area.