PSE Circular for Brokers No. 375-99

March 1, 1999 PSE CIRCULAR FOR BROKERS NO. 375-99 February 26, 1999 Disclosure Department Listings and Disclosure Group Philippine Stock Exchange 4F PSE Centre, Exchange Road Ortigas Center, Pasig City Attention: Mr . Reynold P . Ong Vice-President Listings & Disclosure Group Gentlemen : Please be informed that at the meeting of the Board of Directors of Air Philippines International Corporation, the Board approved the implementation of the acquisition of up to 25% of the equity of Air Philippine Corporation (APC), in accordance with the company's 1999 investment program. The Board also authorized the acquisition of the corresponding amount of stockholder advances for subsequent conversion into equity sufficient to maintain its 25% interest in APC. The Board opted to maintain a substantial minority position in the airline company instead of a 100% acquisition as earlier authorized, in view of the current depressed market and the anticipated inability of the company to cope with the heavy capital funding requirement for an airline operation. At the same meeting, the Board likewise called for a special stockholders' meeting to be held on April 6, 1999 at the time and venue to be indicated in the notice of the meeting, to ratify the aforesaid acquisition and to take up all other matters as may properly come before the meeting. Stockholders of record of the company as of March 18, 1999 shall be entitled to notice of, and to vote at the said special meeting of stockholders. For this purpose, the Board authorized the closing of the stock and transfer books during the period from March 19, 1999 to April 6, 1999, Thank you. Yours very truly, (SGD.) ARTHUR R. PONSARAN Corporate Secretary