PSE Circular for Brokers No. 3068-99

December 2, 1999 PSE CIRCULAR FOR BROKERS NO. 3068-99 December 2, 1999 PHILIPPINE STOCK EXCHANGE, INC. 4th Floor Philippine Stock Exchange Center, Pasig City Attention: Ms . Grace B . De Guia Assistant Manager, Disclosure Department Gentlemen: In compliance with disclosure rules as promulgated by the Exchange, we are sending herewith a copy of Mondragon's statement regarding the status of the negotiation with a US-based trust for re-financing. LexLib Hope the foregoing meet your requirements. Very truly yours, (SGD.) PIERRE PAUL S. BUHAY Financial Comptroller Mondragon Gets P8 Billion Fund Approval A US-based trust has approved Mondragon's negotiated for US$200 Million to facilitate debt settlement with government and the banks and allow the leisure firm to complete the development of Mimosa Leisure Estate. This resulted from a month long investment mission conducted by Mondragon Chairman Jose Antonio U. Gonzalez and the Company's Chief Financial Officer Regalado Galura. Mr. Gonzalez met with Robert Boland, CEO of the First National Corporation in Boston, Massachusetts. LibLex Mr. Boland is the main financial provider of the American trust whose active chairman has had an illustrious career which includes heading Tupperware Europe. He also held principal positions in Allstate Insurance companies, Bank of America, International Title and Guarantee Corporation in Santiago, Chile. The Chairman of the American Trust was impressed with the Mimosa project particularly in that this trust company's competence has been tested in the funding of toll roads, casinos and resorts. At present, Parker's group is undertaking a project development study for toll roads in China. This American Trust employs a unique method of providing project funding. It currently holds safekeeping accounts in the equivalent of US$22 Billion in Japanese Yen with powers-of-attorney which enable them to create US Dollar credit facilities against the yen. Under the trust's management is also a Power of Attorney for over US$10 Billion in Singapore. The company is totally responsible for the funds under its management control. Mondragon's loan processing has now reached its final stage of due diligence and it is expected that, after the legal and accounting procedures have been completed within the next few weeks, the funding (US$ 200 Million) will be remitted to Mondragon starting January 2000. The US$200 Million has been allocated for settlement of Mondragon's rental dues with Clark Development Corporation, Pagcor and BIR contributions and its creditors. The balance remaining will be used to complete the state-of-the-art country club facility, the Montevista Villa reception area, the development of a water theme park, and additional hotel casinos. Once the whole project is in place, it is estimated that there will be at least 10,000 more direct jobs created within the resort and indirect employment is projected at approximately 20,000 with the construction and development of additional recreational and housing facilities for families to make way for Mondragon's entry into the timeshare industry. This infusion of funds will jumpstart tourism into Pampanga as more direct flights from the major capitals in Asia are expected into Clark International Airport. cdll The vision of Mondragon to develop Mimosa into Las Vegas of Asia is inspired by the success of Las Vegas which is now the single largest tourism destination in the U. S., surpassing Orlando, Florida. The gaming Mecca is now also a paradise for wholesome family entertainment, recreation and is the world's favorite convention city. prcd