EDSA Properties Holdings Inc. (EPHI) formerly MUI Resources Philippines Inc.

February 28, 2000 PSE CIRCULAR FOR BROKERS NO. 479-00 February 24, 2000 PHILIPPINE STOCK EXCHANGE Disclosure Department Listings and Disclosure Group 4th Floor, Philippine Stock Exchange Center Exchange Road, Ortigas Center, Pasig City Attention: Ms. Grace De Guia RE : EDSA Properties Holdings Inc . (EPHI) formerly MUI Resources Philippines Inc . Gentlemen: We enclose herewith the press release respecting the year-end results of EDSA Properties Holdings Inc. ("EPHI") which EPHI intends to publish in major Philippine broadsheets. Very truly yours, (SGD.) FEDERICO G. NOEL, JR. Corporate Secretary ANNUAL RESULTS-FOR THE YEAR-ENDED DECEMBER 31, 1999 The Board of Directors of the Company is pleased to report the annual results of the Company's, its subsidiaries and associated company (the Group) operations for the year ended 31 December 1999. The consolidated net income of the Group increased by 0.6% to P157,445,400 from P156,506,156 achieved in 1998. Earnings per share for 1999 and 1998 were P0.080 and P0.079, respectively. A total dividend of P0.085 per share was paid during the year ended 31 December 1999 (1998: P0.079 per share) NOTE 1999 1998 Peso Peso Income 1 521,279,295 507,771,906 Income before provision for income 244,064,315 242,185,654 tax and share in profit of an associated company Share in profit of associated company 823,341 1,159,184 Income before taxation 244,887,656 243,344,838 Taxation 2 (65,426,074) (62,510,482) Income after taxation 179,461,582 180,834,356 Minority interest (22,016,182) (24,328,200) Net Income 157,445,400 156,506,156 Retained profit brought forward 83,798,580 78,103,052 Dividends 3 (167,567,367) (150,810,628) Retained profit carried forward 73,676,613 83,798,580 Earnings per share 4 0.080 0.079 FINANCIAL HIGHLIGHTS 1999 1998 Balance Sheet Peso Peso Shareholders' equity 10,908,043,238 5,719,340,876 Net asset value per share 5 5.53 2.90 Issued shares at 31 December 1,971,380,762 1,971,380,762 NOTES: 1. Income Income comprises rental income, revenue from Ripley's Believe It Or Not and The Cinema, revenue from carpark operations, proceeds from sale of marketable securities and interest income. 2. Taxation Years ended 31 December 1999 1998 The taxation charge comprises Peso Peso Current 66,415,660 66,269,380 Deferred (1,199,427) (4,154,553) Share in associated company's 209,841 395,655 65,426,074 62,510,482 3. Dividends 1999 1998 Peso Peso Dividend per share of P.0850 in 1999 and .0765 in 1998 167,567,367 150,810,628 4. Earnings per share The computation of earnings per share is based on net income of P157,445,400 in 1999 and P156,506,156 in 1998 divided by the total number of shares issued and outstanding of 1,971,380,762 both in 1999 and 1998. 5. Net asset value per share As at 31 December 1999, the Company's land and improvements were revalued by Royal Asia Appraisal Corporation, an independent appraiser. The Group's revised net asset value as at 31 December 1999 after incorporating the revaluation was P10,908,043,238. LibLex Business Review 1999 was a difficult year for most companies in the Philippines. Overall, the country's Gross National Product grew by 3.4%. This growth was mainly due to a 6.9% expansion in agriculture which recovered from the effects of the El Nio phenomenon. The industry sector contracted by 0.3% while the services sector maintained a 3.9% growth. The Peso: US Dollar exchange rate depreciated from P39.15 at the end of 1998 to P40.45 by the end of 1999. Average rates for 91-day Treasury bills declined from 15% in 1998 to 10% in 1999. This reduction may be attributed to the reduced loan demands as companies took a more conservative stance on expansion and investment. The Company's performance for 1999 reflected these conditions. Total Consolidated Gross Income for the year was P521,279 million representing a 3% increase over the previous year. Net income increased from P156.506 million in 1998 to P157.445 in 1999. Earnings per share was P0.080/share. Finance and Gearing The Company's current ratio improved from 2.65:1 in 1998 to 3.18:1 in 1999. The Company is in net cash position and has no debt as at 31 December 1999. As at 31 December 1999, the Group had P576 million cash on hand and short t erm money market placements. Assets The Company's assets include the following: LEASABLE LAND Land with a total area of 86,531 sq.m. located along the intersection of Epifanio de los Santos Avenue (EDSA) and Shaw Boulevard in Mandaluyong City. SHOPPING MALL 78.72% of the Shangri-La Plaza Corporation (SLPC) which owns and manages the Shangri-La Plaza Mall, an 8-storey commercial building with a gross floor area of 171,292 sqm. The major tenants of the mall include Rustans Department Store, Rustans Supermarket, National Bookstore, Crossings Department Store and Mercury Drugstore. The mall lessees also include many internationally recognized retailers including Marks & Spencers, Hugo Boss, Escada, Jones NY, Brioni and Cerruti among others. The mall has two large cinemas, a theater which serves as the home of Repertory Philippines, numerous restaurants, cafes, boutiques and specialty stores. The basement houses the popular Fiesta Food Court with a wide variety of fast food offerings. CARPARK A 7-storey car park building is adjacent to the Shangri-La Plaza Mall. The ground level of the parking building features several popular restaurants including Whistle Stop, Pancake, Casablanca and San Mig. The carpark building is connected to the mall via a bridgeway located at the 5th level. SLPC Operations SLPC closed the year 1999 on the upswing. The Company's strong financial position enabled it to declare dividends amounting to P90 Million and to redeem P159.8 Million preferred shares. Likewise, the Shangri-La Plaza Mall operations closed the year strongly. The Mall registered an increase in its tenancy from 97% to 99% The year also saw over 40 stores open at the Mall with some of the key retail names being Escada Sport, Replay, CK Underwear, Sisley, Kenneth Cole, Guess, Haagen-Dazs, Cinnzeo, Dome Cafe, Ariston, and California Pizza Kitchen. Aggressive and innovative marketing together with good advertising strategies increased customer traffic at the Mall and improved tenant sales. Among these innovative strategies is the cultivation of strategic relationships with foreign embassies and cultural offices and groups, as well as with the local government, to enhance the Mall's bid to be known as a regular venue for various cultural events. SLPCs fresh and aggressive approaches to drive the Mall to the fore of its target market's patronage also earned for SLPC due recognition from various respected organizations. Among the awards earned by SLPC during 1999 are the following: International Council of Shopping Centres (New York) Merit Award winner, International Council of Shopping Centres maxi awards (Taking Art and Culture to the Mall) note: only Philippine shopping center ever to receive this award Public Relations Society of the Philippines Winner, Anvil Award of Excellence for Public Affairs - Arts and Culture (Taking Art and Culture to the Mall) Finalist, Anvil in the Centennial Award (Buhay! 100 Live Performance) Finalist, Grand Anvil Award for most outstanding public relations campaign with most social impact New York Festival (New York) Winner, New York Festival Advertising Awards (Fertility Statues print ad) Philippine Advertising Board Finalist, Araw Values Award (Oceans TVC) 8th Advertising Congress Bronze medal, Best single medium-print campaign (Romeo and Juliet print ad) Philippine Convention and Visitors Commission (PCVC) Best Christmas Decoration, Traditional Shopping Mall Category (Snow Queen) Significant operational improvement and changes were also undertaken with the major initiatives being those needed to improve the Mall's safety and security (replacement of fire alarm system, securing critical installations and vulnerable entry points, change of the agency handling the security of the Mall's interior). the Mall's airconditioning and ventilation facilities were also rehabilitated for better performance. A stairway was constructed to improve customer circulation in levels 2 and 3 of the Mall. Year 2000's major undertaking is the renovation of the Shangri-La Plaza Mall. The renovation is being pursued to reinforce the Mall's competitive advantage and increase its profit potential by capturing a bigger slice of its targeted market. The renovation is projected to increase the Mall's asset value and enhance its market position and corporate identity as a premier shopping complex efficiently catering to the demand for upscale retailing. Complemented by aggressive marketing strategies, the changes are expected to attract more tenants and international retailers, thus achieving a greater mix in the Mall's merchandise offerings. The renovation will see dramatic changes in the Mall's interior and exterior. The Malls' interesting architecture, large open spaces and abundant natural light will be enhanced, given that these have been motivating factors for the patronage of the Mall by its target market. The Mall's exterior grounds will also be landscaped in keeping with the fresh look of the Malls' interior. The foodcourt will also see improvements to increase the Mall's hold on the weekday office crowd in the area. Aggressive and innovative marketing pitches will be pursued to complement and realize the objectives of the renovation. The projected renovation cost includes the construction of a direct access link from the mall to the MRT. The construction of the link will increase people traffic into the Mall which in the long term, is expected to impact significantly on the Mall's leasing and sales prospects. Year 2000 Compliance Although the Company's operations are not substantially dependent on computerized systems, the Company and its subsidiary's hardware and software requirements are Y2K compliant The same was reported to the Philippine Stock Exchange and the Securities and Exchange Commission. Management The Company's Board and Management underwent some significant changes in 1999. In March 1999, Mr. Fernando L Gaspar was elected President of MRPI and Ms. Anna Irmina N. Elicao was elected President of SLPC. On 8 June 1999, MUI sold its 36% shareholdings in the Company to Kerry Properties Limited which is listed on the Hongkong Stock Exchange. Subsequently, Messrs. Chye Kuok Khoon Ho and Chew Fook Aun were elected to the Board in place of Messrs. Loy Yet King and Khet Kok Yin. Mr. Vicente P. Formoso was elected Treasurer at the same time. Subsequently in October 1999, Mr. Federico G. Noel, Jr. was elected to the Board and appointed as Corporate Secretary. In November 1999, Dr. Khoo Kay Peng resigned as Chairman and Director and in his stead, Mr. Chye Kuok Khoon Ho was elected as Chairman and Mr. Ho Shut Kan was elected to the Board. At the end of 1999, the Company and its subsidiary had approximately 100 employees. We would like to thank the management and all the staff for their hard work, loyalty and dedication in coping well with the difficult operating environment in 1999. We are also extremely grateful to the directors for their wise counsel and guidance and for the support and confidence of our investors and strategic partners in making 1999 another successful year for the Company. LibLex By Order of the Board CHYE KUOK KHOON HO Chairman