PSE Circular for Brokers No. 3100-99

December 6, 1999 PSE CIRCULAR FOR BROKERS NO. 3100-99 PHILIPPINE STOCK EXCHANGE, INC. 4th Floor, Philippine Stock Exchange Center Pasig City Attention: Ms . Grace B . de Guia Assistant Manager, Disclosure Dept . Gentlemen: Eight Mimosa employees were seriously injured as forces from PNP and CDC forcibly dragged the employees out of Mimosa Golf & Country Club early morning of December 6, 1999. Prior to the incident, the Regional Trial Court of Angeles City issued last Thursday a Writ of Execution against MLRC when it failed to open a Letter of Credit to guarantee a P325 Million payment to CDC pursuant to a Compromise Agreement. The Court Sheriff gave MLRC five (5) days to comply with the Writ which will expire on Tuesday, December 7, 1999. The officials complained that the PNP and CDC do not have the right to implement the Writ of Execution and force to take over prematurely. llcd Modragon stayed put. Early Saturday morning, ten executives of MLRC, eight of whom were women, were hurt when CDC officials and policemen stormed the Clubhouse of the Mimosa Golf & Country Club inside the two hundred fifteen (215) hectare Mimosa Leisure Estate. The women executives complained that they were dragged from behind the bar of the Clubhouse and they suffered bruises and concussions. MLRC Comptroller, Jose Arcilla complained that he was mauled by eight policemen without any provocation. On the other hand, MLRC Food and Beverage Manager Michael Deakin charged that while he was trying to stop the policemen, a certain inspector Santiago who was about to join the fray, pointed his gun at him and shouted "I will kill you, I will kill you!" Their action was stopped when Club members started coming in for the day's golfing game. Traumatized and physically injured, some of the ladies were taken to the Angeles Medical Center for treatment. cdll Throughout the rest of the night, Mondragon officials tried to reason with CDC officials to withdraw their forces. The Mimosa personnel bravely kept their posts, despite being denied food and beverage from their club restaurant all throughout the ordeal. Late Saturday night, about 150-armed security personnel of CDC and the PNP again poised to bodily remove the MLRC executives and employees holed up at the Clubhouse. They were stopped only by the arrival of Angeles City Mayor Carmelo Lazatin who pleaded to CDC officials to wait for the expiration of the five days deadline. Sunday morning, December 5, violence again almost erupted when CDC security guards prevented the MLRC employees from reporting for work. However, the employees were able to go in when cooler heads pacified the personnel. On December 5, at 5:00 p.m. uniformed military personnel were seen padlocking the side entrance of the Clubhouse and boarding the windows locking the 50 employees of Mimosa Golf and Country Club and mimosa inside the Clubhouse. As of 6:00 p.m. last night, December 5, 1999, the entry to the Clubhouse was blocked by PNP and police. Only members and their guests have been allowed to move in and out. At 8:00 p.m. of the same day, after members and their guests have left the Clubhouse. The officials and personnel of Mondragon Leisure and Resorts corporation and Mimosa Golf and Country Club were determined to protect their posts to prevent CDC personnel from taking over. The police has held them like hostages if they leave, they will not be allowed to re-enter. At 3:45 a.m., December 6, 1999, armed PNP personnel and men in civilian and military clothing reeking of the smell of alcohol, entered the Clubhouse Veranda of Mimosa Golf and Country Club were the 50 officials and employees of Mimosa Golf and Country Club and Mondragon, mostly women, were attacked. Using pistols, truncheons, wooden clubs and bare knuckles, the employees were forcibly taken out of the premises by using excessive force. Eight were seriously injured and were immediately brought to the Mimosa Clinic for medical attention. llcd Prior to the attack, the PNP officials were provoking the sleeping employees by repeatedly banging the windows and chairs and shouting invectives "______ ina! Hindi pa ba kayo lalabas dito?" LibLex General Cesar Go, former Base Commander of Clark Air Base and presently Senior Consultant of Mimosa who was also inside the Clubhouse pleaded with the PNP personnel for them not to use force especially since a lot of the employees inside were women but the plea was to no avail. The situation has brought a cold chill in the once peaceful resort. Staff shiver at re-experiencing last year's military style siege of the Mimosa Regency Casino when the same PNP and the Special Action Force stormed into the casino and barricaded the premises. Modragon is only after upholding the rule of law. Hope the foregoing meet your requirements. LibLex Very truly yours, (SGD.) PIERRE PAUL S. BUHAY Financial Comptroller