PSE Circular for Brokers No. 2627-98

November 20, 1998 PSE CIRCULAR FOR BROKERS NO. 2627-98 November 20, 1998 Philippine Stock Exchange, Inc. Phil. Stock Exchange Centre Exchange Road, Pasig FAX No. 634-2051/634-5113 Attention: Mr . Reynold P . Ong Vice President, Listings & Disclosure Group Gentlemen : Please be informed that in the annual shareholders meeting of Bacnotan Cement Corporation held in the late afternoon of November 19, 1998, the following were approved: (1) The issuance, on a preemptive basis to all shareholders of record, of convertible debt instruments in the aggregate amount of approximately P760 million, under such terms and conditions as Management may deem to be in the best interest of the Corporation; (2) The increase in the authorized capital stock of the Corporation from P2.4 billion to P3.8 billion consisting of 140,000,000 shares of common stock at the par value of P10.00 per share, the increase to be implemented prior to the commencement of the Conversion Period for the aforementioned convertible debt instruments; LexLib (3) The amendments of Article Eight of the Amended Articles of Incorporation to reflect the aforesaid increase; (4) The election of the following directors of the corporation: Ramon V. del Rosario Oscar J. Hilado Magdaleno B. Albarracin, Jr. Jose L. Cuisia, Jr. Jorge J.L. de Leon Miguel A. Magsaysay Ramon R. del Rosario, Jr. Victor J. del Rosario Noel D. Vasquez, SJ Bibiano M. Gavino Roberto M. Lavina Vipul Prakash Edward S. Go Felipe B. Alfonso Antonio B. Alvarez (Letter of Bacnotan Cement Corporation to PSE dated November 20, 1998/Page 2) (5) The appointment of SGV and Co. as the auditors of the corporation; and (6) The renewal of the Management Contract with Philippine Investment-Management Consultants (PHINMA), Inc. for a period of five years from the start of the current fiscal year. cdt Very truly yours, (SGD.) JUAN J. DIAZ Corporate Secretary