PSE Circular for Brokers No. 542-99

March 22, 1999 PSE CIRCULAR FOR BROKERS NO. 542-99 March 19, 1999 Philippine Stock Exchange, Inc . (PSE) Philippine Stock Exchange Center Exchange Road, Ortigas Center Pasig City, Metro Manila Attention: Ma . Luisa W . Buenaventura Supervisor, Disclosure Department Dear Ms. Buenaventura : We refer to the news article "Petron expected to cut capacity of power plant". We wish to inform you that the proposed power plant is part of Petron's major refinery conversion project The entire project is still in the feasibility planning stage and Petron is evaluating its options including the appropriate size of the power plant. As of date, therefore, there is no definite program yet on the project's configuration. We confirm, however, that our initial studies indicated a power plant with a capacity of about 360 megawatt. With the assessment by certain sectors that there would be an overcapacity in the power generating sector due to several power projects coming on stream, we need to reassess the sizing of our proposed power plant to address this issue. In this regard, we are studying the option of a smaller plant with a capacity of about 125 megawatt. Prospective partners are still interested in Petron's refinery conversion project even with the possible downsizing of the power project component. We trust that we have sufficiently complied with your disclosure requirement. Very truly yours, (SGD.) ARMAND I. PESTANO Corporate Communications Manager