Jollibee: Revenues Up 8%. Net Income Down 12.7%

November 3, 1999 PSE CIRCULAR FOR BROKERS NO. 2794-99 Jollibee : Revenues Up 8% . Net Income Down 12 . 7% Jollibee Foods Corporation (JFC) reported consolidated Sales Revenues of P 3.2 billion and a Net Income of P 187 million for Quarter 3 1999. Compared to the same period last year, this performance represents an 8% growth in Sales Revenues and a 12.7% decline in Net Income. Amidst the current softness in the total fast-food industry, this revenue growth was primarily driven by the Jollibee business unit, which registered a 12% growth. This performance more than offset the interim weakness in the Greenwich Pizza business unit, which declined by 4%. Among the segments of the fast-food industry, the pizza market segment has suffered most due to consumer coping behaviors exhibited during this period of economic difficulty. The decline in net income was principally caused by this weakness. Consolidated Systemwide Sales at the retail level reached P 3.8 billion for the quarter, growing by 4% vs last year Jollibee registered a 7% growth while Greenwich Pizza registered a 1% decline. " JFC pursued a very aggressive advertising and promotions campaign in order to reverse the negative sales trend that started during the second quarter. While 3rd quarter sales performance of the fast-food industry continued to be weak as the consumer spending remained sluggish, we saw very encouraging results in the month of September", said Jollibee President Tony Tan Caktiong. LexLib "The recently announced minimum wage adjustment will have a negative impact on labor costs. However, it is expected to have a favorable impact on demand for fast-food products going forward", he added. The company continues to expand the Jollibee and Greenwich retail networks nationwide. For the nine-month period, 39 new Jollibee stores and 22 new Greenwich stores were opened. It also continues to upgrade its business support infrastructure. The new BAAN IT System has successfully done a parallel run with its legacy MACPAC System, providing much needed computing power for expanded business requirements while ensuring Y2K compliance at the same time. A new manufacturing and distribution facility is scheduled for completion next year. The company operates the largest fast-food chains in the country in their respective segments. As of the end of 3rd quarter, 339 Jollibee stores and 183 Greenwich outlets were operational. The company also has 21 branches overseas. Jollibee Foods Corporation has also declared a cash dividend of P0'10 per common share payable to all stockholders on record as of November 12, 1999 and payable on December 6, 1999.