PSE Circular for Brokers No. 325-00

February 11, 2000 PSE CIRCULAR FOR BROKERS NO. 325-00 KEPPEL PHILIPPINES MARINE REPORTS HIGHER PROFITS Keppel Philippines Marine turned in higher revenue of P774 million in 1999. This was due to the inclusion of the results of Keppel Cebu Shipyard, which was acquired during the year. Interest expense rose due to financing for the construction of the 50,000 dwt drydock. Contributions from associates of P13 million were lower due mainly to higher goodwill amortization charges. Pre-tax profit and attributable profit improved by 20% and 15% to P93 million and P63 million respectively. Higher ship repair activities were recorded at Keppel Batangas Shipyard and Keppel Cebu Shipyard. The number of foreign vessels calling at the Batangas yard increased with the operation of the new 50,000 dwt drydock. However, repair of domestic vessels remained weak due to the sluggish local shipping industry. Associate, Subic Shipyard registered a slight decline in revenue due to stiff competition in the international ship repair market. The international ship repair market will remain highly competitive, while domestic shipping is not expected to improve. The three yards in the Philippines will consolidate their marketing efforts to attract more foreign vessels. Progress has also been made in costs reduction and in improving operational efficiency. Barring any unforeseen circumstances, the Company is expected to perform better in the current year. For further information, please contact Kevin Chee at Telephone Number 892-1816 . KEPPEL PHILIPPINES MARINE, INC. INCOME STATEMENT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 1999 1999 1998 P'000 P'000 Revenue 774,040 403,165 Operating Profit 103,153 61,413 Net Interest Income/(Expense) (23,058) 1,171 Share of Results of Associates 12,674 14,770 Profit Before Taxation 92,769 77,354 Taxation (30,224) (22,565) Profit Before Minority Interest 62,545 54,789 Minority Interest 843 354 Attributable Profit 63,388 55,143 ======= =======