Davao Union Cement Corporation

November 9, 1998 PSE CIRCULAR FOR BROKERS NO. 2554-98 SUBJECT : Davao Union Cement Corporation Davao Union Cement Corporation ("DUC) clarified to the Exchange a news article published in the November 3, 1998 issue of the Manila Times which reported that two minority stockholders of DUC have asked the Securities and Exchange Commission to compel DUC to open its books and records for their inspection. DUC, in its letter, explained that: ". . . the news article in question arose from a case filed with the Securities and Exchange Commission on October 18, 1998 by Philip Turner and Elnora Turner against Davao Union Cement Corp. (DUCC) and Juan J. Diaz docketed as SEC Case No. 10-98-6133. We received the summons and a copy of the complaint on November 4, 1998. The Turners alleged in their compliance that as holder of one DUCC share, they are entitled to inspect the books and records of DUCC. We have turned down their requests for inspection because as dissenting shareholders in the declassification of DUCC shares, all their rights as shareholders have been suspended except the right to receive payment of the fair value of their dissenting shares, and such fair value is being determined by an appraisal committee. LexLib We hope we have clarified the matter. Please be advised that since there is already a pending case, any discussion thereon may be sub-judice." For your information. (SGD.) RAFAEL L. LLAVE Chief Operating Officer