Integration of Fortune Cement Corporation, Iligan Cement Corporation, Republic Cement Corporation and Zeus Holdings

December 17, 1999 PSE CIRCULAR FOR BROKERS NO. 3227-99 INTEGRATION OF FORTUNE CEMENT CORPORATION, ILIGAN CEMENT CORPORATION, REPUBLIC CEMENT CORPORATION AND ZEUS HOLDINGS On 8 December 1999 the Board of Directors of Republic Cement, Fortune Cement Corporation, Zeus Holdings, Inc. and Iligan Cement Corporation approved a recommendation to integrate their operations and activities into a common entity. Further to that announcement, the Boards of Directors of Republic, Fortune, Zeus and Iligan have today decided that, subject to shareholders' approval, Republic Cement Corporation will issue new shares in exchange for existing shareholders in Fortune, Zeus, and Iligan based on the swap ratios of 1000 Republic Cement common shares to 1575 Fortune Cement common shares or 14411 Zeus common shares or 206 Iligan Cement common shares. This integration will make the group the second largest cement manufacturer in the Philippines with an annual clinker production capacity of 4.4 million metric tons and a market share of around 20%. The nationwide market coverage of the group will be supplied from 4 plants located strategically in Norzagaray (Bulacan), Taysan (Batangas), Asturias (Cebu) and Iligan City (Lanao del Norte). Its product range will include Portland (Type I, Type II and Type V), Pozzolan; and White cements. These products will continue to be sold by a single sales and marketing organization under the leading brand names that are already well-established in the various regional markets.