PSE Circular for Brokers No. 483-98

March 25, 1998 PSE CIRCULAR FOR BROKERS NO. 483-98 March 24, 1998 PHILIPPINE STOCK EXCHANGE Philippine Stock Exchange Centre Exchange Road, Ortigas Center Pasig City Attention : Surveillance and Monitoring Department Gentlemen : We hereby furnish you with a copy of our letter which we are sending today to Sen. Sergio Osmea III, copy furnished the Philippine Daily Inquirer, setting straight certain inaccurate statements made in reference to Filinvest Land, Inc. in an article entitled "Singson accused of coddling erring banks" which appeared in the March 21, 1998 issue of said newspaper. cdlex Thank you and best regards. Very truly yours, (SGD.) DANTE P. RAMOS Corporate Secretary March 23, 1998 HON. SERGIO OSMEA, III Senator, Philippine Senate G.S.I.S. Building Manila Dear Senator Osmea: This refers to the article which appeared in the March 21, 1998 issue of the Philippine Daily Inquirer entitled "Singson hit for coddling erring banks". Aforesaid article attributed to you a statement that "several banks were found to have spread themselves too thick on loans to Gotesco and Filinvest" and that "(Banks) do not want their profit to go down because of these non-performing real estate loans". cdlex We would like to believe that you were only misquoted or simply misinformed. We wish to set the record straight and provide you with the following facts: A. The Filinvest Group has maintained a perfect credit record since 1955. We have never been delayed in our loan repayments ever. This is something we are very proud of. B. The Filinvest Group as of March 21, 1998 has a bank debt of only P2.1 Billion all of which are current and up to date in terms of interest and principal. This bank debt is minimal when compared to our stockholders equity of P22.0 Billion. As such, Filinvest is among the least leveraged realty companies in the Philippines today. C. The prestigious Forbes Magazine has cited Filinvest Land, Inc. as one of the best managed small companies in the world for 1995 and 1996. With this information made available to you, we hope that you will no longer put us in the company of Gotesco. FLI and its holding company, Filinvest Development Corporation, are both publicly listed companies and are both included in the stock index. Our companies have a lot of foreign investors and such unfounded comments not only tend to erode investor confidence in the companies concerned but also seriously jeopardize the country's efforts to restore normalcy in the Philippine stock market which has been rendered jittery and sensitive by the prevailing economic uncertainties in the region. prLL (ILLEGIBLE PORTION OF CB311670 FILES) more than welcome any request for information about our company. Good luck in your election and best regards. Thank you very much. Very truly yours, (SGD.) ANDREW L. GOTIANUN, SR. President Filinvest Development Corp .