Ayala Corporation

March 20, 1998 PSE CIRCULAR FOR BROKERS NO. 433-98 SUBJECT : Ayala Corporation Ayala Corporation (the "Company") informed the Exchange, in a letter dated March 19, 1998 , that the Board of Directors, in its regular meeting held on even date, approved the sale of approximately 450 million shares of its holdings in Ayala Land, Inc. ("ALI") through a private placement to institutional investors, for the purpose of raising the aggregate amount of US$200 million. The peso equivalent of US$100 million will be used to temporarily assist ALI in the acquisition of 38.35% of the outstanding capital stock of C&P Homes, Inc. ("CMP"). The ALI shares covered by this tranche will however be reacquired within the next sixty (60) days by the Company under a primary issue of ALI which is the subject of forthcoming applications for licensing and listing with the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE). Thus, there will be no dilution in the Company's holdings in ALI. cdt The proceeds of the second US$100 million will be utilized by the Company to optimize its liquidity position and to support its investments program. The sale of the ALI shares covered by this tranche will however result in a 3% dilution of AC's holdings in ALI. In the same meeting, the Board also approved the sale of the Company's 8,226,512 shares which have been held in treasury. For your information. (SGD.) MA. ISABEL T. GARCIA Head, Listing and Disclosures Group