Mondragon International Phils., Inc.

November 19, 1998 PSE CIRCULAR FOR BROKERS NO. 2620-98 SUBJECT : Mondragon International Phils . , Inc . This is with reference to Circular No. 2609-98 pertaining to Mondragon International Phils., Inc.'s ("MON") clarification of a news article published in the November 18, 1998 issue of the Business Daily, which reported of Clark Development Corporation's (CDC) termination of its lease agreement with Mimosa Leisure Estate. MON further explained that: ". . . The notice of termination is a procedural step taken by CDC and allows Mondragon to respond to the issues raised. We continue to have high level negotiations with CDC in trying to resolve these issues and we are very optimistic that they will be resolved. Should no agreement be reached, the dispute shall be referred to arbitration under the dispute settlement clause of the Lease Agreement between CDC and Mondragon under Section 1 of Article XI. We expect that CDC will not implement their threat of termination without complying with the above dispute settlement procedures. . . ." For your information. (SGD.) JOSE LUIS U. YULO, JR. President and CEO