PSE Circular for Brokers No. 2644-99

October 15, 1999 PSE CIRCULAR FOR BROKERS NO. 2644-99 PRESS RELEASE FBDC BACKS PRESIDENT ESTRADA'S ALTERNATIVE LAND USE PLAN FOR 64-HECTARE FORT BONI LAND The Fort Bonifacio Development Corporation (FBDC) recently expressed support for the direction of President Estrada to consider other options in lieu of an earlier plan to build a golf course and recreational area in a prime 64-hectare area within the Fort Bonifacio Global City. This involves the return of the 64 hectares from FBDC to the government through the Bases Conversion and Development Authority (BCDA). President Estrada said the move will enable the government to make better use of the land in line with the administration's pro-poor policy. President Estrada also expressed preference for a BCDA proposal to use the 64 hectares for the development of an Information Technology Special Economic Zone that would generate employment and support the country's drive to become globally competitive. FBDC President Ricardo Pascua said the design of Fort Bonifacio's Global City is highly suitable for an IT zone, noting that the telecommunication infrastructure of the area is ready for such requirements. Mr. Pascua also qualified that the withdrawal of this project will have no major impact on the total picture of the Global City as East Asia's most modern metropolis in the near future. llcd In response to the Government's move, FBDC has reverted the title for the 64 hectare property to BCDA. This will result in the reversal of an Pesos 8.8 billion provision recorded in the books of FBDC's parent company, Bonifacio Land Corporation (BLC), which is a 66 per cent subsidiary of Metro Pacific Corporation. This was the amount outstanding from the Pesos 39.2 billion bid which BLC tendered in 1995 for participating in the Fort Bonifacio project. In addition, FBDC will be given some BCDA-owned lots in the 57 hectare Big Delta development within the Global City, and other asset worth Pesos 1.1 billion. BLC's balance sheet as of end June 1999 had outstanding obligations of Pesos 13.7 billion and total assets of Pesos 40.2 billion. Following the adjustments, BLC's debts would be reduced to just below Pesos 5 billion and total assets to Pesos 31 billion. Mr. Pascua further noted that the reversal will require an Pesos 18 billion adjustment to FBDC's land values which will result in improving the Company's internal rate of return. Mr. Pascua said FBDC supports this development, noting that the company can now focus on the aggressive implementation of the Master Plan for the Global City, and in accelerating the accomplishment of FBDC's business goals.