Metro Pacific Corporation Announces Sale of Remaining Stake in Starpack to VAW

December 2, 1998 PSE CIRCULAR FOR BROKERS NO. 2696-98 PRESS RELEASE Metro Pacific Corporation Announces Sale of Remaining Stake in Starpack to VAW Metro Pacific Corporation ("MPC") announced today that Steniel Manufacturing Corporation, MPC's packaging holding company has signed an agreement to sell its remaining interest in Starpack Philippines Corporation ("Starpack" formerly AR Packaging Corporation) to its foreign partner VAW Europack GmbH ("VAW"). VAW is a leading international packaging group and had acquired a 40% interest in Starpack in 1996. The remaining 60% interest has been purchased for Pesos 700 million and will result in a gain of approximately Pesos 275 million for Steniel. Correspondingly, MPC will book P200 million in gains from the sale. Steniel will use the proceeds to retire debt. The acquisition will also enable VAW to strengthen a regional platform for its flexible packaging operations in Asia, with its other plants in Thailand, Indonesia, and China. Mr. Napoleon Nazareno, President and CEO of Steniel, said it was personally difficult for him to let go of Starpack having been President and General Manager of AR Packaging for 12 and a half years and spending a total of 15 years with the AR Group. Mr. Nazareno says "I hold the entire Starpack team in high regard, having worked closely with them for so many years. However, I am confident in the ability of VAW to take Starpack into its next stage of development and maturity. Starpack is the market leader in the flexible packaging industry. But its position can be further enhanced to become a formidable player during these challenging times through VAW's international expertise and resources." cdt According to Mr. Jurgen Hermans, CEO of VAW, "We have been able to establish an excellent partnership with the existing staff and management group at Starpack. Under the leadership of Starpack's current President, Ms. Angelita Dalusong, the company returned to profitability in 1997 and 1998 after a difficult year in 1996, and continues to work with her team toward increasing productivity and efficiency. VAW plans to be in the Philippines for the long term and provide quality packaging services that will suit the ever changing needs of the consumer market." For further information contact: Ms. Corazon P. Guidote Tel. No.: 811-0367