PSE Circular for Brokers No. 456-00

February 23, 2000 PSE CIRCULAR FOR BROKERS NO. 456-00 February 23, 2000 The Philippine Stock Exchange, Inc . 4 Floor, Philippine Stock Exchange Center Exchange Road, Ortigas Center Pasig Center Attention : Ms . Grace B . de Guia Assistant Manager Dear Ms. De Guia: We would like to inform you that we are confirming the news article "Pure Foods posts P616 M net income" published in today's issue of the Philippine Star, although the data are still based on the unaudited financial statements. We shall provide you a copy of the audited financial statements as soon as they are available. Very truly yours, (SGD.) MA. ROSA L. SANTOS Vice President - Controller and Chief Financial Officer Pure Foods posts P616-M net income Pure Foods Corp. recorded in 1999 its strongest year in recurring profits, generating after-tax income from continuing operations of P616 million. 162 percent higher than the previous year. In a recent disclosure to the Securities and Exchange Commission (SEC), the company reported consolidated net sales of P10.6 billion, up 8.8 percent from the previous year while consolidated net income reached P727.8 million. All operating units of Pure Foods registered growth in sales and profits with the processed meats business remaining the largest contributor to the company's revenue streams. LibLex Its largest operating division, the Processed Meats Division was spun off in January 1999 into a joint venture with US-based Hormel Foods Corp. Now a subsidiary, The Purefoods-Hormel Co. brought remarkable results in its first full year of operation, strengthening further its leadership position in refrigerated meats, especially hotdogs and bacons. The Poultry, livestock and feeds Division performed reportedly better in 1999 with record higher growth in profits. Pure Foods flour business on the other hand, grew its sales and operating income amidst a generally weak flour market by focusing on institution markets and opening new sales territories. In addition, Pure Foods entered into a strategic partnership with The Pillsbury Co. to create a joint-venture company to be known as Pillsbury Purefoods Co. Inc. in which Pure Foods will have a 40-percent share. It will manufacture and sell flour premixes and dough-based products to be sold under the Pillsbury brand. This joint ventures is the latest among the many alliances which Pure Foods has forged with world-class companies which are leaders in their respective markets. In the quick service restaurants category, Burger King operated in a very competitive environment and matched the leading industry players in aggressive marketing efforts with innovative value meal packages. The company opened 14 additional Burger King outlets in 1999, ending the year with a total of 25 restaurant after two years of operations. MPM Noodles registered positive results in 1999 with 25 percent growth in sales volume and posted a higher net income compared to 1998.