SM Prime Net Income Up 10.2%

November 11, 1999 PSE CIRCULAR FOR BROKERS NO. 2874-99 SM Prime net income up 10.2% SM Prime Holdings, Inc., the Philippines' premier shopping mall chain, posted a net income of P2.19 billion in the first nine months ended September 30, 1999, up a noteworthy 10.2% from last year's P1.99 billion. Total revenues for the period grew to P4.10 billion from P3.89 billion of 1998. Rental revenues for the third quarter increased by a strong 15.3% to P1.01 billion from she previous year's P 875 million. LexLib Income from operations amounting to P2.45 billion for the nine months increased by 15.1% from last year's P2.13 billion. Operating expenses decreased by 6.3% to P1.65 billion from P1.76 billion, made possible by improved efficiency in operations. Interest income, however, decreased by 27.9% to P 763 million from last year's P1.06 billion, due to lower interest rates this year. The publicly listed company is looking forward to an even more robust performance of its eight malls in the fourth quarter, given the start of the Christmas shopping season. Continuing to be bullish on the improvement of the economy, SM Prime is set to reach the masses through nationwide coverage. It is presently constructing two more malls, its ninth and tenth. One is the 170,000 square meter, seven-level SM City-Manila mail, near Manila City Hall. Its site is strategically located, being in the heart of the city itself and bounded by three streets Arroceros Street, where the central station of the existing Light Railway Transit operates, Concepcion Street and San Marcelino Street in Ermita district. SM City- Manila, now becoming a landmark given its prominence in size and site, is scheduled to open by mid-2000. The other mall under construction is SM City-Pampanga, with 55,000 square meters of mall space, which sits on a 32 hectare property straddling two municipalities, San Fernando and Mexico. This early, residents of the Pampanga and the neighboring provinces, are eagerly awaiting the mall's opening, scheduled in late 2000. LexLib SM Prime is steadily working on a continuing expansion program to sustain its growth and its leadership in the mall industry in the next millennium.