PSE Circular for Brokers No. 2811-99

November 4, 1999 PSE CIRCULAR FOR BROKERS NO. 2811-99 October 29, 1999 PHILIPPINE STOCK EXCHANGE PSE, Center, Exchange Road Ortigas Center, Pasig City ATTENTION: Surveillance and Monitoring Group Gentlemen: This refers to a news article entitled "DOF UNCOVERS P304-B SCAMS" which appeared in the October 29, 1999 issue of the Philippine Star. We wish to clarify the following matters mentioned in said Article: 1. Filinvest Development Corporation and its subsidiary, Filinvest Alabang, Inc., which is undertaking the development of the Alabang Stock Farm in Muntinlupa City are not aware of any ongoing investigation being conducted by the reported "newly created presidential task force on corruption" of alleged government losses on the transaction with Filinvest covering such development project. For the record, however, we would like to stress that the terms of the joint venture agreement for the development of said property were in accordance with the results of the public bidding conducted by the national government which had been judicially upheld to be legal and valid. 2. The statement imputed to DOF Secretary Edgardo Espiritu that "Filinvest paid the government unfinished and uninhabitable housing units for the land" is entirely untrue. The housing units delivered by Filinvest to the National Government were accepted only after a rigid inspection done by an inspectorate team of the Public Estates Authority found them to be in compliance with the agreed plans and specifications stipulated in the joint venture agreement between Filinvest and the government. Deficiencies, if any, found in the course of such inspection were repaired and corrected and the housing units were reinspected before they were finally accepted. It may be worthwhile to note here that the housing units in San Jose del Monte, Bulacan, where President Joseph Estrada personally led the relocation of squatters from the Pasig River banks at the onset of his administration. were part of the housing units delivered by Filinvest to the government. We trust that the foregoing shall clarify and put under proper light the aforesaid matters mentioned in subject news article. Very truly yours, (SGD.) DANTE T. RAMOS First Vice President