PSE Circular for Brokers No. 653-00

March 14, 2000 PSE CIRCULAR FOR BROKERS NO. 653-00 March 13, 2000 ATI's 6-Month Net Income Surpasses Last Year's 12-Month Results For the six-month period July to December 1999, South Harbor operator Asian Terminals, Inc. (ATI) generated a net income of P217 million. This half-year production already surpassed the previous fiscal year's net income of P212 million produced over the full 12 months. The above audited net income figure is the result of a special audit conducted by external auditors SGV & Co. covering only a six-month period in anticipation of the Company's move to shift from fiscal year (ended June 30) to a calendar year (January 1, 2000 to December 31, 2000). July to Dec 1999 July to Dec 1998 July 1998 to June (six months (six months 1999 audited) unaudited) (one year audited) Net Sales P1,317-M P1,012-M P2,119-M Net Income P217-M P23M P212-M Earnings/Share 0.11 0.02 0.16 ATI cited several factors that paved the way for this record performance. Firstly, the economic recovery that is ongoing and the improved overall business environment have boosted significantly the cargo throughput being handled at the South Harbor. Both container and general cargo throughput are growing at a faster rate compared to the previous year. (more) The Company is now also reaping the benefits from cost reduction and productivity improvement programs that were established immediately after the economic crisis struck in 1997. Better controls over operating costs and overheads continued to improve the company's profitability. An infusion early last year of P1 billion in equity funds by the shareholders has not only strengthened the Company's balance sheet but also directly decreased loan balances and the corresponding interest costs, thereby adding to the Company's profitability. ATI's diversification and business development programs are also starting to bear fruit as its new business units, such as the Batangas port together with the passenger terminal and the Inland Clearance Depot in Calamba together with the third-party logistics business, are now contributing substantially to the Company's overall margins. With a stronger capital structure and overall balance sheet position, the Company has achieved the ideal gearing of one is to one (debt/equity). It has therefore improved its capability to finance new projects that are expected to put back on stream the Company's expansion programs, which were temporarily put on hold during the height of the crisis. Several projects are currently being studied and evaluated. ATI believes that the Company is well prepared to aim for even better results for the initial year of the new millennium. The preliminary results for the first two months (January to February) support this expectation.