PSE Circular for Brokers No. 3012-99

November 25, 1999 PSE CIRCULAR FOR BROKERS NO. 3012-99 Ms. Luisa W. Buenaventura Supervisor, Listings and Disclosure Group Philippine Stock Exchange, Inc. Philippine Stock Exchange Center Exchange Road, Ortigas Center Pasig City Dear Ms. Buenaventura, In reference to your request for clarification on the news article "Jollibee sued" published in yesterday's issue of the Manila Times, the following is our response; LibLex Jollibee Foods Corporation, through its lawyers, has indicated before the Securities and Exchange Commission that the cases filed by Chika Go against Jollibee are clearly baseless and unfounded. The article published in today's issue of the Manila Times contained a mix-up of facts, according to Claro F. Certeza, JFC Vice President, Legal and Corporate Affairs. Following are the correct details. llcd The case in question (SEC Case No. 01-99-6198) involves JC Properties and Ventures Corporation (JCPVC). JCPVC is the owner and developer of the condominium project known as the "Jollibee Centre". The said project was completed on May 31, 1991. In SEC Case No. 01-99-6198, Chika Go, as minority stockholder of JCPVC, is questioning the right of JFC to acquire Four (4) Floors of Jollibee Centre at cost. The right given to JFC to purchase at cost was made in exchange for the right given to JCPVC to use the name "Jollibee" as part of the name of the condominium project. cdll There is a second case pending in the SEC involving JP Properties and Ventures Corporation (JPPVC). JPPVC is the owner and developer of the condominium project known as the "Jollibee Plaza". In SEC Case No. 10-98-6115, Chika Go, as minority stockholder of JPPVC, is questioning the right of JFC to acquire Six (6) Floors of the building at cost. The said right to purchase at cost is supported by a Trademark User Agreement executed between JFC and JPPVC wherein JFC allowed JPPVC to use the name "Jollibee" for the condominium project in exchange for the right to acquire Six (6) Floors of the same at cost. LexLib JFC, through its law firm, has filed a timely response in SEC Case No. 10-98-6115 indicating, among others, that its agreement with JPPVC is valid and binding. In fact, JFC has already made substantial downpayments to JPPVC pursuant to the agreement. JFC is prepared to present all pertinent records to support its position. Pursuant to the agreement executed between JFC and JCPVC, JFC paid JCPVC the total amount of Sixty Three Million Nine Hundred Nine Thousand Pesos (Php63,909,000.00) representing the actual cost of the four-(4) floors at the Jollibee Centre. The cost computation used in the transaction is borne out by actual construction records which JFC will present to the SEC as part of its response to the suit. In both cases, JFC has filed a counterclaim against Chika Go for besmirching its reputation, exemplary damages and reimbursement of lawyer's fees in the total amount of One Hundred Fifty Five Million Pesos (Php155,000,000.00). Respectfully yours, (SGD.) MIGUEL JOSE T. NAVARRETE Vice President, Finance