PSE Circular for Brokers No. 2763-98

December 15, 1998 PSE CIRCULAR FOR BROKERS NO. 2763-98 PHILIPPINE STOCK EXCHANGE, INC. Ortigas Center, Pasig City FAX No. 673-8811 Attention: Ms. Luisa Buenaventura Supervisor, Disclosure Dept . Gentlemen : In the morning of December 14, 1998, the Clark Development Corporation Management served a closure order on Mimosa. This was done in spite of an agreement reached last Friday, December 11, at the Angeles Regional Trial Court with Justice Philbert I. Iturralde presiding. The order stated that the parties "agreed to respect the status quo as suggested by the Court," and set the schedule for conciliatory meetings. In open defiance of this court order, CDC President Rufo Colayco, without the knowledge and prior approval of his Board of Directors, acted arbitrarily and unilaterally also closed down the Mimosa Regency Casino, in contempt of a previous injunction that had been issued by Justice Viola also of the Angeles Regional Trial Court. The closure ordered by Colayco covered the entire Mimosa resort. aisadc After the proper hearing upon petition by Mondragon, Justice Iturralde issued a 17-day Temporary Restraining Order to preserve Mimosa under Mondragon's control. Mr. J.A. Gonzalez, Chairman of Mondragon, expressed his "sincere belief in the sense of justice and fairness of President J. E. Estrada." Mr. Gonzalez added, "the irreparable damage done by Mr. Colayco together with the PAGCOR Chairman has sent shock waves throughout the business community. Storm troopers were sent into Mimosa in order to execute illegal orders in defiance of the judiciary. I thought this type of martial law scenario was buried long ago. It's certainly regrettable that after so much investment by a private firm three times our contracted obligation that we should face an attempt to be shut down by such foul and undemocratic means. The President has always said: "Let the courts decide." Well, they did, and look at what the CDC President did. He doesn't deserve the trust and confidence of the people of Pampanga where Clark is located, whose interests Mondragon has vowed to preserve through investment, employment, and total support." LexLib Very truly yours, (SGD.) FAUSTINO S. ROBERTO EVP and CFO