Megaworld Properties & Holdings, Inc.

February 11, 1999 PSE CIRCULAR FOR BROKERS NO. 254-99 SUBJECT : Megaworld Properties & Holdings, Inc . Megaworld Properties & Holdings, Inc. ("Megaworld" or "MPHI") informed the Exchange of the court's decision in the case of Addition Hills Mandaluyong Civic & Social Organization, Inc . v . MPHI relative to the latter's Wack Wack Heights project in Mandaluyong City, as follows: ". . . the Regional Trial Court, in its Decision in the captioned case, did not order the demolition of any condominium units. The Decision merely nullified the Certificate of Locational Viability, Development Permit, Certificate of Registration, License to Sell, and Building Permit and directed Megaworld 'to rectify its Wack Wack Heights Project for it to conform to the requirements of an R-2 zone of Mandaluyong City and of the Metro Manila Zoning Ordinance 81-01'. Had the Regional Trial Court envisioned a demolition, it would have categorically directed Megaworld to do so. cdt Our position remains to be that the decision of the Regional Trial Court is moot and academic as the condominium project has already been completed. And, in view of the fact that the case is sub judice, it is but only prudent for us to refrain from any discussion of the merits of the case. For now, we can only assure the investing public that there is settled jurisprudence to support the view that a demolition is not likely to happen, especially since construction of the condominium project was made in good faith and in reliance of duly issued permits and licenses. We also would like to point out that the condominium project is now owned by different unit buyers who were not parties to the case and who, therefore, cannot be prejudiced by its outcome. As regards the status of the case, Megaworld has already filed a notice of appeal and the Regional Trial Court has ordered the transmittal of the records of the case to the Court of Appeals." For your information. (SGD.) JOSE LUIS U. YULO, JR. President & CEO