PSE Circular for Brokers No. 604-00

March 9, 2000 PSE CIRCULAR FOR BROKERS NO. 604-00 March 7, 2000 PHILIPPINE STOCK EXCHANGE Disclosure Department 4/F PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Grace de Guia Compliance Supervisor Dear Ms. de Guia : We refer to our disclosure letter dated 07 December 1999 informing PSE that the Board of Directors of PNOC Exploration Corporation (PNOC EC), as debtor, has approved under Resolution .No. 35, S'99 the conversion of PHP 74 Million loan drawdowns from the Philippine National Oil Company (PNOC) exclusive of interest thereon in favor of PNOC as equity in PNOC EC. Subsequently, the Board of Directors of PNOC, as creditor, during its regular board meeting held on 12 January 2000 approved the conversion of the PHP74 Million loan drawdowns plus interest in the amount of PHP1,253,065.00, into equity in PNOC EC. Therefore, the total amount of debt converted into equity was PHP75,253,065.00 (not PHP74,000,000.00). Please be informed that during its regular board meeting held on March 07, 2000. PNOC EC Board has amended Resolution No. 35, S'99 to reflect the annual debt converted in the amount of PHP75,253,065.00 into equity in PNOC EC in favor of PNOC. Thank you and best regards. Very truly yours, (SGD.) ELPIDIO M. GAMBOA, JR. Corporate Secretary & General Counsel