PSE Circular for Brokers No. 2582-98

November 13, 1998 PSE CIRCULAR FOR BROKERS NO. 2582-98 12 November 1998 Securities & Exchange Commission Director Linda A. Daoang Money Market Department S.E.C. Building, EDSA Mandaluyong City Philippine Stock Exchange Disclosure Department Listings and Disclosure Group 4/F PSE Center, Exchange Road Ortigas Center, Pasig City Gentlemen : Please be informed that the Board of Directors approved yesterday the execution of an agreement with Hormel Foods Corporation for the purpose of establishing a joint venture company for the manufacturing and selling of processed and canned meat and other products and goods, as well as importation and distribution of Hormel products. In this connection, the Processed Meats Division of Pure Foods will be spun off to form the new company to be known as "The Purefoods-HFC Company, Inc." which is expected to be operational by January 01, 1999. The new company will be owned 60% by Pure Foods Corporation and 40% by Hormel Foods Corporation. The move is expected to further consolidate Pure Foods' market dominant position in processed meats and related lines. On the macroeconomic level, the joint venture is a significant affirmation of the strengthening of the Philippine economy and rising foreign-investor confidence in its stability. This information is being made in compliance with the rules of the Securities & Exchange Commission and the Philippine Stock Exchange. Thank you. Very truly yours, (SGD.) RENATO O. MARZAN Corporate Secretary