Keppel Philippines Properties, Inc.

December 8, 1999 PSE CIRCULAR FOR BROKERS NO. 3126-99 SUBJECT : Keppel Philippines Properties, Inc . Keppel Philippines Properties, Inc. ("KEP") furnished the Exchange a copy of its amended SEC Form 11-A for fiscal year ended December 31, 1998 with the following amendments: Item 1. Business ". . . Group Restructuring 1998 marked the transition of the Company's activities from ship repair and shipbuilding to property development. Accordingly, the. Company was renamed Keppel Philippines Properties. This is in line with the Keppel Philippines Group's restructuring program to consolidate its core businesses under its respective companies. Consequently, the marine and engineering activities of the Company were transferred to Kepphil Shipyard, now renamed Keppel Philippines Marine. In exchange, KPPI received a 15 percent stake in SM-Keppel Land, a joint venture company which is developing a two-hectare plot in the commercial-cum-business district of Ortigas, Metro Manila. The transaction was completed at the end of 1998. llcd Consolidation of Keppel Group's properties in the Philippines under KPPI will continue into 1999. It will increase its stake in SM-Keppel Land to 40 percent by acquiring another 25 percent interest from Keppel land later this year. llcd The Company also plans to take a stake in Keppel Center, developed by Keppel Monte Bank in Cebu. Likewise, the Company also plans to restructure as a subsidiary of Keppel Land, after consultation with the partners and minority shareholders, and after seeking approvals from the authorities. cdlex (ii) Percentage of sales or revenue and net income contributed by foreign sales for each of the last three years. LibLex 1998 7% 1997 15% 1996 18% (iii) Distribution methods of products or services Upon completion of the repair LexLib (iv) Status of any publicly-announced new product or service Not applicable llcd (v) Competitive business conditions and the registrant's competitive position in the industry and methods of competition. Not applicable cdll (vi) Sources and availability of raw materials and the names of principal suppliers. The principal materials purchased are obtained on a competitive basis from many different sources and are readily available. Principal suppliers are the following: Bes Pacific Hardware Cebu City JA Sons Steel Corp Cebu City Tokyo Hardware Cebu City Sea Scan Int'l. Pte. Ltd. Singapore Shi Myung Industries Korea xxx xxx xxx" Item 2. Properties "The company owns a 2-storey commercial building located along Caltex Road, Looc, Lapu-Lapu City. There are no mortgage or lien on this building." Item 3. Legal Proceedings "As part of the restructuring, legal proceedings have been assigned to Keppel Cebu Shipyard., Inc." cdlex Item 5. Market for Registrant's Common Equity and Related Stockholder Matters "1) Market Information (i) The principal market where the registrant's common equity is traded, is the Philippine Stock Exchange. . . ." Item 6. Management's Discussion and Analysis or Plan of Operation Additional information as Annex "A-1" is attached to the amended SEC Form 11-A. Item 9. Directors and Executive Officers of the Registrant Additional information on the office address, positions, offices and the period during which the directors and executive officers have served. Item 10. Executive Compensation "(b) Information as to the aggregate compensation paid or accrued during the fiscal year to the three most highly compensated executive officers are as follows: 1998 1997 Aggregate compensation paid to the three most highly compensated executive officers: P2.5 million P3.3 million Mr. Charles Yap Giok Twee Mr. Barry Chia Soo Hock Mr. Alex Cheng Tee Han" A copy of KEP's amended SEC Form 11-A is available for reference at the PSE Center and PSE Plaza Libraries. LibLex For your information. prcd (SGD.) MARIA ISABEL T. GARCIA OIC, Listings and Disclosure Group