Reynolds Philippines Corporation

December 7, 1999 PSE CIRCULAR FOR BROKERS NO. 3114-99 SUBJECT : Reynolds Philippines Corporation Reynolds Philippines Corporation ("RPC") furnished the Exchange a copy of its amended SEC Form 11-A for fiscal year ended December 31, 1998 with the following additional information: ITEM II. PROPERTIES ". . . The land located in Barrio San Agustin, Dasmarias, Cavite, consists of three (3) lots with an aggregate area of 249,533 square meters, more or less. The developed portion (plant site) occupies approximately 144,208 square meters . The main plant building has a floor area of 20,848 square meters. In the plant site also stood two extrusion buildings (with a total floor area of approx . 2000 square meters each) and several office buildings, guardhouses, pump house, and storage and utilities buildings . LibLex The Corporation's ownership of the above described properties is encumbered under a Mortgage Trust Indenture with Metropolitan Bank and Trust Company ." ITEM VI . MANAGEMENT DISCUSSION & ANALYSIS OR PLAN OF OPERATION "B. Management's Discussion and Analysis of Financial Condition and Results of Operations The Company reported a net loss of PhP591 . 979 . 457 million in 1998 compared to a net loss of PhP247.6 million in 1997 and a net income of PhP190 . 1 million in 1996 . This year's loss was mainly due too a PhP298 . 8 million write-off of unamortized goodwill in investments and PhP124 million allowance for doubtful accounts . llcd Profit (loss) per share in 1998, 1997, and 1996 amounted to (PhP0 . 59), (PhP0 . 26) and PhP0 . 37 respectively . The Company's current assets in 1998 and 1997 amounts to PhP1 . 399 billion and PhP1 . 511 billion respectively . The decline was due to lower receivable and inventory levels. As of December 31, 1998, the total assets and liabilities of the Company amounted to PhP5 . 086 billion and PhP3 . 587 billion respectively compared to PhP5 . 005 and PhP3 . 242 million in December 31, 1997 . prcd As discussed in last year's report regarding the Asian currency crisis the Philippines was still affected by the said crisis resulting in fluctuating foreign exchange rates and unavailability of loan facilities to support working capital requirements . The continued effects of the currency crisis resulted to high cost in borrowed funds. Thus, although the Company was able to significantly reduce its debts in 1998, interest expense was only PhP5.65 million lower than the 1997 borrowing costs ." llcd ITEM IX. DIRECTORS & EXECUTIVE OFFICERS OF THE REGISTRANT "(2) Material Litigation The Company is not aware of: (a) any bankruptcy petition filed by or against any business of which a director or person nominated to become a director, executive officer, or control person of the Company was a general partner or executive officer whether at the time of bankruptcy or within two years prior to that time : (b) any conviction by final judgment in a criminal proceeding, domestic or foreign, or being subject to a Pending criminal proceeding, domestic or foreign, of any director. person nominated to become a director, executive officer, or control person of the Company ; (c) any order, judgment, or decree not subsequently reversed, suspended or vacated, of any court of competent jurisdiction. domestic or foreign, permanently or temporarily enjoining, barring, suspending, or otherwise limiting the involvement of any director, executive officer, or control person of the Company in any type of business, securities. commodities, or banking activities ; and (d) any finding by a domestic or foreign exchange or electronic marketplace or self-regulatory organization, that any of the Company's director or person nominated to become a director, executive officer, or control person, has violated a securities or commodities law, and the judgment has not been reversed. suspended or vacated ." ITEM X. EXECUTIVE COMPENSATION Additional information on the compensation of the Chief Executive Officer and the four (4) most highly compensated executive officers, and the aggregate compensation of the senior management as a group. ITEM XI. SECURITY OWNERSHIP OF CERTAIN RECORD AND BENEFICIAL OWNERS AND MANAGEMENT Additional information on security ownership of management. ". . . The aggregate number of common shares owned of record by all key officers and directors as a group as of Record Date is 10,833,031 or approximately 1.08% of the Company's outstanding common shares ." cdlex A copy of RPC's amended SEC Form 11-A is available for reference at the PSE Center and PSE Plaza Libraries. For your information. (SGD.) MARIA ISABEL T. GARCIA OIC, Listings and Disclosure Group