As Stated

October 25, 1999 PSE CIRCULAR FOR BROKERS NO. 2725-99 To : Ms. Luisa Buenaventura Company : Philippine Stock Exchange Phone : 6360122 Fax : 636-0809 From : Atty. Rodolfo G. Corvite, Jr. Company : Asian Terminals, Inc. Phone : 5274051 to 60 Fax : 527-9963 1 527-2467 Pages : This page only SUBJECT : As Stated This concerns the Philippine Star news article which you faxed to us this morning. This is to confirm that the data on net income contained in the first paragraph of the said news article is correct. Please note, however, that the price quoted in the last paragraph for the Terminales Rio de Plata investment should be US$5 Million, instead of the stated US$6 Million. We would also like to correct the typographical error on the third paragraph, wherein Mr. Barclay was mistakenly referred to as the chairman. He is currently our chief executive officer. Thank you. (SGD.) ATTY. RODOLFO CORVITE, JR. ATI net income up 49% in FY '98-'99 Despite the economic difficulties that assailed the country in the past two years, Asian Terminals Inc. (ATI) generated a net income of P212 million, an improvement of 49 percent over the previous year for fiscal year July 1998 to June 1999. LexLib The company attributed its performance to several measures it undertook to keep its operations afloat, focusing on efficiency and prudence in management, operations and costs as priority objectives. ATI chairman Richard Barclay said, however, that notwithstanding subsequent signs of improvement in the economy, "the company has not relented in pursuing the programs it established" when the crisis started in 1997. "The drive to increase revenues from all fronts yielded good results, as the throughput for containers improved by seven percent and the grains terminal by 34 percent," Barclay explained. He said earlier decisions to diversify and invest in the Mariveles Grain Terminal Batangas Port, and the Logistics Centers provided alternative sources of revenues which are "strategic to the core business". "Operating, expenses, compared to last year, went down because of the effective cost reduction programs we implemented, although profitability was not our only main goal the company's financial condition and liquidity are just as i important," Barclay said. "The process for the rights issue raising P1 billion was implemented last April, which reduced the company's gearing drastically and strengthened its balance sheet to allow more room to absorb financing for future projects," he said. "Strengthening the company's capital structure also reduced substantially its capital costs and contributed to overall profitability." This, Barclay added enhanced ATI's credit standing, which was confirmed by the retention of its "A" rating from the Credit Information Bureau. To further enhance its liquidity, the company sold its remaining five percent investment in Terminales Rio de la Plata an Argentinian port operator, at "a good price of $6 million," at the same time continuing to prepare for the advent of improved business conditions and a rise in cargo volumes. Barclay said.