PSE Circular for Brokers No. 578-98

April 2, 1998 PSE CIRCULAR FOR BROKERS NO. 578-98 April 1, 1998 Philippine Stock Exchange, Inc. Disclosure Department Listing Group PSE Centre, Exchange Road Ortigas Center, Pasig City Attention : Ms . Grace de Guia Supervisor Disclosure Department Gentlemen : This is in reference to your letter dated March 31, 1998 regarding the article "MIPI Eyes Foreign Partner" published in the March 31, 1998 issue of the Manila Bulletin. LibLex We wish to inform the Exchange that the infusion of funds through a strategic partner is indeed one of the key strategies that we are considering. We have had discussions with several parties who are evaluating the project. The exact nature and extent of the possible investment are still the subject of initial discussions with such parties. These discussions include, among other things, the items mentioned in the news article. Please be assured that we will inform the Exchange of any significant developments as they arise. Thank you very much and we do hope the foregoing meet your requirements. LLpr Sincerely yours, (SGD.) PIERRE PAUL S. BUHAY Financial Comptroller MIPI eyes foreign partner Mondragon International Philippines Inc. said it plans to sell about 33 percent of its stake in wholly-owned unit Mondragon Leisure and Resorts Corp. to a foreign strategic partner "Forging an alliance with a foreign partner is our key strategy this year," Mondragon International vice president Reggie Galura told AFX-Asia. "We have talked to a few groups (of possible buyers). We are considering to give up a third of the company, which is about 33 percent." He said one of these companies is the "Latbroke Group," which runs the Hilton hotel chain outside the US. "Negotiations are (in) the advanced stages," Galura said, but declined to provide further details. He said another hotel operator, the US-based Starwood Group, has also offered to invest in Mondragon Leisure. (AFX-Asia) LLjur