Clarification on "Jumbo Palace to Manila"

November 10, 1999 PSE CIRCULAR FOR BROKERS NO. 2860-99 November 9, 1999 THE PHILIPPINE STOCK EXCHANGE PSE Centre, Exchange Road Ortigas Center Pasig City Attention: Ms . Grace B . De Guia Asst . Manager, Disclosure Department RE : Clarification on " Jumbo Palace to Manila " Gentlemen : Please be informed that as of present the Corporation is not directly involved in the efforts of Stanley Ho to bring the reported Jumbo Palace in the Philippines by this month. The possible role of BWRC has not yet been identified and still the subject of a possible negotiation between the group of Stanley Ho and BWRC. Very truly yours, BW RESOURCE CORPORATION (SGD.) JOSE SALVADOR M. RIVERA, JR. Corporate Secretary Ho will bring Jumbo Palace to Manila before yearend Stanley Ho is making good on his promise to bring the Jumbo Palace to the Philippines in time for Christmas. prcd Barring hitches, local representatives of Macau casino tycoon Stanley Ho are currently working to bring to the Philippines the Jumbo Palace this month as part of the group's investments in the Philippines. cdlex Stanley Ho, during his visit to the country last September, inked an exclusivity agreement with BW Resources Corp, (BWRC) for his investments in the Philippines. The Macau gaming mogul pledged that bringing Jumbo Palace in Manila, which is currently operating in Hong Kong, would signify his sincerity in plunking investments into the country. "When I say I'm going to invest, I mean exactly what I say so wait and see how much money I'm going to put in BW Resources. Jumbo Palace will be at the Manila Bay before Christmas. That alone will cost P800 million or more," he said in an interview during his recent visit to the Philippines. llcd According to a highly reliable source, the group of businessman Dante Tan is currently studying the feasibility of operating the floating restaurant in the country. The source said the Jumbo Palace would be docked in the Manila Bay area. prcd The source said the group is currently preparing documents necessary to secure permits from concerned government agencies for the planned local operations of the Jumbo Palace. "We're still finding out what permits would be required from the company. We are still studying the location for the floating casino with considerations for safety and protection of the environment. But we would prefer that the Jumbo Palace be docked along Manila Bay," the source said. prcd According to the source, operator of the Jumbo Palace would have to secure approval from the Department of Transportation and Communication, Philippine Ports Authority, Philippine Coast Guard, National Parks Development Authority, Department of Environment and Natural Resources, Board of Investments, and Department of Tourism. The source however said the group of Dante Tan might have to look for a 100 percent Filipino-owned entity to operate the Jumbo Palace since the law prevents foreigners from engaging in the retail sector. BW Resources is not 100-percent Filipino, with 10 percent of the company being owned by the group of Stanley Ho. Meanwhile, in a separate development, the group identified with businessman Tony King holding 40 percent of Armstrong Holdings Inc. refused to sell their shares to businessman Dante Tan who tendered an offer to buy their shares last month. cdll Tan, who exercises control over BW Resources, Armstrong, and Best World Gaming and Entertainment Corp., wrestled control over Armstrong Holdings Inc. by acquiring last month 59 percent of the company. Based on a tender-offer report by Armstrong to the Philippine Stock Exchange, the company said that "upon the lapse of the tender offer period on October 15, no shares of (Armstrong) were tendered by any of the stockholders of (Armstrong) to Tan." Tan gained control of Armstrong when it bought nearly 60 percent of the company via block sale at the PSE last September 7. The sale, amounting to P284.25 million, covered 107 million Armstrong shares at P2.75 per share. cdlex The 59-percent block in Armstrong was previously held by Golden Maple Holdings Inc., owned by company chairman Tony King. Golden Maple said it would use the proceeds to purchase a stake in BW Resources. Armstrong also plans to divest its shares in Orion Savings Bank for P136 million to Harrigold Assets Inc. and its 20-percent shareholdings in its stockbrokerage arm Armstrong Securities, worth P16 million, to Golden Maple to enable it to fund the acquisition of BW shares.