PSE Circular for Brokers No. 507-00

February 29, 2000 PSE CIRCULAR FOR BROKERS NO. 507-00 February 28, 2000 Disclosure Department Listing and Disclosure Group 4/F, Philippine Stock Exchange Center PSE Center, Exchange Road Ortigas Center, Pasig City Fax No. 6342051 Attention: Ms. Grace B. de Guia Listing & Disclosure Group Gentlemen: We wish to advise you that AJO.net Holdings, Inc. (AJO) today invested the amount of US $500,000.00 in 8% one-year Convertible Promissory Notes (the Notes) of BiTMICRO NETWORKS, INC. (BiTMICRO). The Notes will be converted to Series D Preferred upon approval of issuance of Series D Preferred by 2/3 of all holders of Preferred Series A, B, and C, and Common Stock of BiTMICRO. The Series D Preferred Shares are convertible to common shares on a one-for-one ratio. BiTMICRO is raising $10 million from the issuance of the Notes through private financing, which will be programmed primarily for strengthening Research and Development, building up a high profile team, expanding production facilities, implementing its marketing program, and covering expenses relating to the planned IPO of its common shares. BiTMICRO is a privately held California Corporation headquartered in Fremont, California. It was founded in 1995 by Filipino professionals led by engineer-inventor Dr. Romeo H. Bruce, Ph.D. Priding itself on the ingenuity and inventiveness of the Filipino mind, BiTMICRO aims to grow and position itself as a world class manufacturer in the storage and network industries. It has developed ''leapfrog-technology'' products, the first of which was launched in January 1999. Its latest product is the SUX35 E-Disk whose features (18Mbytes/second read and write transfer rates and access time of less than 0.1 millisecond, 18.5Gbytes capacity) make it ten times faster than the closest flash-based solid-state storage of competitors. Its revolutionary technologies are protected by patents. It currently has three approved patents, three pending patents, and is aggressively pursuing others. Further details about the investment and BiTMICRO are shown in Annexes "A" and "B" hereof. Very truly yours, (SGD.) ANNA MARIA A. KATIGBAK Asst. Corporate Secretary (Corporate Information Officer-in Charge) ANNEX A Investment by AJOnet. Holdings in Convertible Promissory Notes issued by BiTMICRO NETWORKS INC. Amount of Investment: $500,000.00 Instrument: 8% One-Year Promissory Notes Convertible to Series D Convertible Preferred Shares at not more than $5.00 per Share The Notes (principal plus accrued interest) will be converted to Series D Preferred upon approval of issuance of Series D Preferred by 2/3 of all holders of Preferred Stock Series A, B and C and Common Stock. Series D Preferred Shares are convertible to common shares on a one-for-one ratio. Series D Preferred Shares are senior to other preferred and common stock. Usage of Proceeds : BiTMICRO has raised $10 million from the and objectives issuance of the Notes through private financing. BiTMICRO plans to take its first generation flash-based E-Disk TM and E-DiskCache TM products into full production and to expand the application of its proprietary FlashBus TM technology into its Network Attached Storage and Storage Area Network products. Proceeds from the Notes will be programmed primarily for strengthening Research and Development, building up a high profile management team, expanding production facilities, implementing its marketing program and covering expenses relating to the planned IPO of its common shares. Financial Advisors: PricewaterhouseCoopers ANNEX B BiTMICRO NETWORKS. INC. Brief Background BiTMICRO NETWORKS, INC. is a privately held California Corporation, presently headquartered in Fremont, California. It was founded in 1995 by Filipino professionals led by engineer-inventor. Dr. Romeo H. Bruce (pronounced Bru-se), Ph.D. Their primary vision was to eliminate the widening gap between secondary data storage and CPU performance while improving storage reliability. Priding itself on the ingenuity and inventiveness of the Filipino mind, BiTMICRO NETWORKS aims to grow and position itself as a world class manufacturer in the storage and network industries. It has developed "leapfrog-technology" products, the first of which was launched in January 1999. Its latest product is the SUX35 E-Disk whose features (18Mbytes/second read and write transfer rates and access time of less than-0.1 millisecond, 18.5Gbytes capacity) make it ten times faster than the closest flash-based solid-state storage of competitors. Its revolutionary technologies are protected by patents. It currently has three approved patents, three pending patents and is aggressively pursuing others. AJOnet is quite enthusiastic about BiTMICRO NETWORKS' "get-ahead" technology. The fact that it was originated and developed by Filipinos was a significant factor to AJOnet's decision to support and be a part of the company. Product Lines BITMICRO NETWORKS designs, develops, and markers flash disk and solid state disk storage solutions Electronic Disk -- E-Disk and E-DiskCache . By nature of their all-electronic design and the implementation of BiTMICRO NETWORKS FlashBus technology, these solid state disks and flash disk drives offer many advantages over conventional flashdisk, solid state disk and hard disk. BiTMICRO NETWORKS ruggedized flashdisks and solid state disks solutions were designed to deliver industry-leading performance and extreme reliability. The First Generation E-Disk and E-DiskCache, flash disk and solid state disk storage solutions have the hard disk drive's form, fit and function. The flash-based E-Disk solid state storage devices also offer the highest storage density and capacity but yet consume very little power and are lightweight. Likewise, the all DRAM-based E-DiskCache solid state disks are compact and lightweight. The Second Generation E-Disk solid state flashdisk product line is geared towards increased enterprise system-level storage performance. The Company is integrating FlashBus technology to address the Network Attached Storage NAS and Storage Area Network SAN environments by providing an economical way of delivering combined solid state disk storage performance, reliability, flexible connectivity and scalability. The Disk and E-DiskCache solutions are well suited for high bandwidth and 1/O intensive mass storage requirements called for by many mission critical businesses in the network attached storage NAS and storage area network SAN environments including data warehousing, multimedia, financial, on-line transaction processing OLTP, Internet service providers, e-commerce, and other enterprise applications such as "hotfiles" and proxy servers. These are also ideal for telecommunications, transportation, industrial, aerospace, military, and other applications exposed to severe or environmental conditions. prcd The company is quite optimistic on account of ongoing product inquiries and orders. It has been operating profitably since its first product launch. In order to concentrate on R & D and invention work (which is the company's strength), it plans to continue to contract out the manufacture of the various components of its products. Its physical operations will continue to consist mainly of assembly work. The IPO of its common shares is planned for early 2001. More information on BiTMICRO NETWORKS is available at its website:/http://www.bitmicro.com.