Approval by the Stockholders of the Increase in Capital stock of Armstrong Holdings, Inc. ("AHI") from P240,000,000.00 to P740,000,000.00

December 21, 1999 PSE CIRCULAR FOR BROKERS NO. 3256-99 December 20, 1999 DISCLOSURE DEPARTMENT Listings and Disclosure Group 4/F Philippine Stock Exchange PSE Center, Exchange Road Ortigas Center, Pasig City Gentlemen : RE : Approval by the Stockholders of the Increase in Capital stock of Armstrong Holdings, In c. ("AHI") from P240,000,000 . 00 to P740,000,000 . 00 Please be informed that in the special meeting of the stockholders held on December 20, 1999, the following resolutions were approved: "RESOLVED, as it is hereby resolved, that the authorized capital stock of the Corporation be, as it hereby is, increased. from Philippine Pesos: Two Hundred Forty Million P240,000,000.00, consisting of Two Hundred Forty Million (240,000,000) common shares, with a par value of P1.00 each to Philippine Pesos: Seven Hundred Forty Million (P740,000,000.00), consisting of Seven Hundred Forty Million (740,000,000) common shares with a par value of P1.00 each. RESOLVED FURTHER, that the entire increase in capital stock of Five Hundred Million Pesos (P500,000,000.00), consisting of Five Hundred Million common shares, shall be fully subscribed and paid in cash by Mr. Dante Tan, an existing shareholder of the Corporation and the proceeds from such subscription be used to fund the Corporation's investments in Internet-based electronic trade and commerce. prcd RESOLVED FURTHER, that Article VII of the Articles of Incorporation of the Corporation be and the same is hereby amended to read as follows: cdlex SEVENTH: The authorized capital stock of said corporation is Seven Hundred Forty Million Pesos ( P740,000,000 . 00 ) Philippine currency, and said capital stock is divided into Seven Hundred Forty Million shares ( 740,000,000 ) with a par value of One Peso (P1.00) each. (as amended on December, 1999) cdll RESOLVED FINALLY, that the Corporate Secretary be, as she hereby is authorized to prepare and file such documents as may be necessary to effect the foregoing resolutions." We trust that the foregoing is sufficient for your purposes. Thank you. Very truly yours, (SGD.) FRANCES T. YUYUCHENG Corporate Secretary