Central Azucarera dela Carlota

October 19, 1999 PSE CIRCULAR FOR BROKERS NO. 2676-99 SUBJECT : Central Azucarera dela Carlota Central Azucarera dela Carlota ("CAC") furnished the Exchange a copy of the Securities and Exchange Commission's reply to CAC's request for approval of its quasi-reorganization plan for the purpose of improving its equity position, stating that: ". . . Considering that the quasi-reorganization process which involves the elimination of the losses of that corporation amounting to P203,074,578 as of July 31, 1999 by offsetting the entire amount against the existing revaluation increment on its property, would eventually enable the corporation to pursue its business profitably, this Commission interposes no objection thereto, subject to the following conditions: 1. That for purposes of dividend declaration the retained earnings of the company shall be restricted to the extent of the deficit wiped out (and not recovered by accumulated depreciation of appraisal) by the appraisal surplus; and LexLib 2. That after the quasi-reorganization has been effected, the company shall disclose in all its subsequent financial statements for a minimum period of three (3) years the mechanics, purpose and effect of such quasi-reorganization on the financial condition of the company." For your information. (SGD.) MA. ISABEL T. GARCIA OIC, Listing & Disclosure Group