PSE Circular for Brokers No. 2771-99

October 28, 1999 PSE CIRCULAR FOR BROKERS NO. 2771-99 FOR IMMEDIATE RELEASE ATI achieves its objectives South Harbor operator Asian Terminals Inc. (ATI) finished its fiscal year ended June 30, 1999 with a net income that is 49% better than last year. Gross revenues for the year reached P2.9 billion as the last quarter results ended very strongly with container volumes showing a 35% growth over the same period last year; general cargo, 79% and the Mariveles Grain Terminal, 52%. ATI Chairman Richard Setchell in the company's Annual Stockholders Meeting stated that the overall results were very satisfying and he attributed this success to the company's commitment that "efficiency and prudence in management, operations and costs are priority objectives in whatever business environment we are in. The Company has always adhered to this belief and the above result is a good testimony to this commitment, especially in times of adverse economic conditions." The Chairman also cited that aside from remaining profitable, the Company's other main goal was to improve its overall financial condition, liquidity and balance sheet to ensure that it remains a stable enterprise. Concrete steps were taken during the year to pursue this objective and this was largely achieved last April 1999 through an equity infusion of P1 billion effected through a rights issue process. The undertaking was very successful as this was fully supported by the shareholders. As a result, the Company's debt/equity ratio is now one is to one. The strong capital base prepares the company for eventual future expansion. Also, the reduction of borrowings by P1 billion from the proceeds of the rights issue has drastically reduce interest costs. LexLib The above results were achieved because the Company did not relent in pursuing the programs it has established in immediate response to the economic crisis in 1997. Subsequent improvements in the economy this year, the drive to increase revenues from all the Company's business sectors (South Harbor, Mariveles Grain Terminal, Batangas Port and Logistics Center) yielded good results. The productivity improvement/cost reduction programs implemented improved efficiencies to the point that the total operating expenses incurred this year of P1.6 billion was even 1% below compared to the amount posted last year. On top of its financial strength, the Chairman reiterated the importance that the Company attaches to efficiency and safety in operations, employee training in all, levels of operations, and recognition of the Company's responsibility for environmental concerns. The difficult business environment was not a reason at all to cut down on the resources allotted to these programs. Information Technology capability was also driven forward in investments in hardware, software and personnel. The Chairman also announced that ATI is now 100% Y2K compliant. With all the above structures firmly in place, the company is prepared to put on stream new investment opportunities that it has continuously been evaluating even during the period of crisis. The proper announcements will be made when all the preliminary work is completed. The following were elected to ATI's board: Messr. Richard Setchell, Colin Childs, Richard Barclay, Eusebio Tanco, Roland Young, Seichi Takada, Douglas LuYm, Nilo Pea, Ramon Atayde and Arturo Lopez.