PSE Circular for Brokers No. 517-99

March 18, 1999 PSE CIRCULAR FOR BROKERS NO. 517-99 NEWS LEASE FOR SPI TECHNOLOGIES INC. SPI Technologies Inc . Enters Software Services Arena Listed company SPI Technologies, Inc (Philippine Stock Exchange, ticker symbol "SPI"), a leading exporter of information technology services, announced today that it is entering the software services arena through the creation of a new subsidiary, SPI Solutions, Inc. aisadc SPI Solutions will focus initially on offering Enterprise Resource Planning ("ERP") implementation services for both Philippine and overseas clients. ERP application software allows companies to integrate all aspects of their business (e.g. financial, sales, production, human resources, etc.) in one seamless database. The growth in demand for ERP software has been explosive in recent years, and according to a December 1998 Fortune article, the US$23 billion a year industry is projected by AMR Research to grow to over US$80 billion worldwide by 2002. In the Philippines, the industry has generated over P7 billion in revenues over the past 4 years. In 1998, data from WS Research Corp., the Philippine licensee of International Data Corp., showed a 71 percent year-on-year growth for the Philippine ERP software and services market. SPI Solutions is in the process of pursuing national implementation partner status with SAP, the world's leading ERP software company. SPI Solutions' professionals will work with SAP's clients to install and configure SAP's full range of software application modules. SPI Solutions will be headed by Leo Bangug as President and CEO. Mr. Bangug is one of the pioneers of the ERP industry in the Philippines and has over sixteen years of experience in the IT industry. Mr. Bangug joined SAP Asia (Singapore) in 1995, and was responsible for setting up SAP Philippines in the same year. He and SAP have been leading proponents of ERP in the Philippines. As such, SAP programs have been implemented in over thirty major Philippine companies (including San Miguel Corp., Petron, and Coca-Cola Bottlers Philippines, Inc.). Mr. Bangug was most recently Country, Business Manager at SAP Philippines. Ernest Cu, President and CEO of parent SPI Technologies, said, "We are very fortunate to have a high caliber industry veteran such as Leo join us, and to have a world industry leader such as SAP consider us as a partner. We regard SPI Solutions to be another major step for us up the technology ladder. SPI's move into software services is a logical part of our strategy to continually move into more complex and higher value added information technology services which generate higher revenues per professional. We will be offering additional software services soon, many of which are an extension of our data conversion services." Leo Bangug said, "I am excited to be joining SPI and spear-heading its move into this growth field. We believe in the combination of SAP products, our management team's experience and the credibility of SPI, with its long history of providing quality IT services to clients around the world. This combination will enable us to provide our clients with the best ERP implementation solutions in the country." Carol Carreon, SAP Philippines Managing Director said, "We at SAP Philippines are delighted that Leo and SPI have joined forces with us. We are looking forward to working closely with them in serving SAP's many potential customers in the Philippines." cdt SPI also provides other information technology services such as including (1) conversion of news. professional and technical information electronic form for major Internet and online content providers, (2) conversion of legacy document collections into a standardized electronic form for use on corporate intranets or networks, (3) conversion of evidence related documents into a searchable CD-ROM format for corporations involved in major litigation, and (4) electronic mapping and database building for utilities. SPI is an ISO 9002 certified exporter whose clients are located largely in North America and Europe. Authenticated by: (SGD.) ERNEST L. CU President & CEO