PSE Circular for Brokers No. 2771-98

December 16, 1998 PSE CIRCULAR FOR BROKERS NO. 2771-98 December 15, 1998 Philippine Stock Exchange PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Disclosure Department Listings and Disclosure Group Dear Sirs : Please be advised that A. Soriano Corporation (ANSCOR) has sold its shareholdings in Ten Knots Development Corporation (TKD) and Ten Knots Philippines, Inc. (TKP), and at the same time increased its shareholdings in Seven Seas Resorts and Leasure, Inc. (Seven Seas) and Island Aviation, Inc. TKD is the owner and operator of Miniloc Island Resort and Lagen Island Resort in El Nido, Palawan. TKP is the holding company which owns the resort area as well as an aerodome in El Nido, Palawan. LLphil On the other hand, Seven Seas is the owner of Amanpulo Resort in Pamalican Island, Palawan, which is being managed by Amanresorts. Island Aviation owns the aircraft that ferries Amanpulo guests to and from the island. With this transaction, ANSCOR and its related companies will hold majority interests in the country's premier resort. A. Soriano Aviation, a 100%-owned subsidiary of ANSCOR, will continue to operate the air service between Manila and El Nido. Very truly yours, (SGD.) REGINALDO L. HERNANDEZ Vice President and Assistant Corporate Secretary