PSE Circular for Brokers No. 626-99

March 29, 1999 PSE CIRCULAR FOR BROKERS NO. 626-99 March 29, 1999 Philippine Stock Exchange, Inc . PSE Center Exchange Road Ortigas Center, Pasig City Attention: Ms . Grace B . De Guia Assistant Manager Disclosure Department Gentlemen : Attached is a copy of our press release dated March 27, 1999. For your information. Sincerely yours, (SGD.) PIERRE PAUL S. BUHAY Financial Comptroller GOVERNMENT DEFIES SUPREME COURT TRO The Philippine National Police and the Clark Development Corp. in an unprecedented move today defied a TRO by the Supreme Court. The Supreme Court issued a TRO yesterday commanding CDC and all persons acting upon its orders to cease and desist from taking over the Mondragon-owned Mimosa Leisure Estate and the Mimosa Regency Casino effective immediately. However, instead of immediately complying with the SC TRO, CDC reinforced the Mimosa Regency Casino with more security guards and fully armed PNP personnel. Inspector Arnold Santiago, who is the commanding officer of the PNP elements in the Casino, bluntly told casino officers and employees who tried to go inside the casino that they were under orders not to give up the casino no matter what happens. In an official statement, Mondragon said that contempt proceedings will be initiated on Monday against CDC President and CEO Rufo Colayco, PNP Director General Roberto Lastimoso, PNP Region III Director Roberto Calinisan, PNP Provincial Director Renato Rosete, Santiago and other PNP personnel in the casino. However, in an interview with correspondents, Calinisan just laughed off the threatened contempt and told reporters that the PNP would not move out of the casino until the SC comes out with a final decision. CDC took over the Mimosa Regency Casino on December 14 last year for the alleged failure of the Mondragon to pay rentals. However, Mondragon has disputed the amount of unpaid rentals claimed by CDC and expressed willingness to pay the correct amount of rentals. Mondragon also insisted on the parties going to arbitration. LLpr The RTC-Angeles City has earlier issued a TRO and an injunction against CDC. However, on March 19, the Court of Appeals reversed the RTC-Angeles City, but the Supreme Court issued the TRO restraining the enforcement of the CA decision.