Filinvest Development Corp. Invests P4 B in East Asia Utilities Corporation (CEBU POWER PROJECTS)

March 31, 1998 PSE CIRCULAR FOR BROKERS NO. 551-98 FILINVEST DEVELOPMENT CORP. INVESTS P4 B IN EAST ASIA UTILITIES CORPORATION (CEBU POWER PROJECTS) Filinvest Development Corporation (FDC) is investing P4 Billion in East Asia Utilities Corp.'s (EAUC) Cebu Power Projects in the form of equity and advances. In a disclosure statement to the Philippine Stock Exchange and the SEC, FDC disclosed that it had acquired control of EAUC. EAUC owns two power plant projects in Cebu with a combined capacity of 122.6 MW. EAUC is a joint undertaking of FDC and East Asia Power Resources Corp. (EAPRC). EAPRC will handle the operations and maintenance of the power plants. Based on its unaudited consolidated financial statement, FDC has total resources of P62.7 Billion with stockholders equity of P21.89 Billion, as of December 31, 1997. It closed the year with a cash balance of P10.6 Billion. The company has enjoyed a run up in the stock market this year, mainly due to its strong financial position and its conservative debt management. cdlex Aside from its infrastructure investments, FDC is a leader in the real estate business with its subsidiaries Filinvest Land, Inc. (FLI) and Filinvest Alabang Inc. (FAI). "Given the current economic conditions, FDC is selectively investing in projects which meet more stringent targeted returns" said Atty. Efren Gutierrez, Director of FDC. "The company can now benefit from its very strong cash position and is able to carefully choose among the various investment opportunities that have been made available" he added. "EAUC is an attractive investment because one of the plants is already generating and providing power to the Mactan Export Zone. The second plant is expected to start full commercial production by July, 1998. The two plants are expected to generate total revenues of P1.6 Billion for 1998 and P2 Billion in 1999." cdll