PSE Circular for Brokers No. 692-99

April 7, 1999 PSE CIRCULAR FOR BROKERS NO. 692-99 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 April 6, 1999. cdll For your information. Sincerely yours, (SGD.) PIERRE PAUL S. BUHAY Financial Comptroller PRESS RELEASE April 6, 1999 Mondragon Leisure and Resorts Corporation (MLRC) Legal Counsel Atty. Ernesto B. Francisco, Jr. corrected the claims of Clark Development Corporation (CDC) press releases that MLRC is set to raid the Mimosa Regency Casino to access the millions of pesos in casino earnings stashed inside the casinos vaults. There are no such plans. We are simply waiting for the Supreme Court to act on our pending motions to cite CDC and PNP officials in contempt and order their arrest and detention. Why does MLRC have to raid its own vaults when no less than the Supreme Court has ordered that it is entitled to the peaceful, possession of the casino as provided in its Lease Agreement? Why does MLRC have to resort to violence when the law is in its side? asked Atty. Francisco. LexLib Francisco added that this is a clear ploy on the part of CDC to justify the unlawful stay of CDC and PNP officials inside the casino promises in violation and contempt of the Temporary Restraining Order issued by the Supreme Court on March 25, 1999. Contrary to CDC's claim that the company is "facing foreclosure from its creditor banks," Mondragon states that it continues to have the support of its creditor banks in seeking a commercial solution to the problem with CDC. "In fact," declared Atty. Francisco, "MLRC is now finalizing negotiations for a bridge financing package that will allow the company to re-start operations of the casino." CDC also reported MLRC's supposed recruitment and hiring of residents for odd jobs inside Mimosa, MLRC denied this allegation because since two months ago, the company has had to trim down its operations and manpower count due to the slowdown of business resulting from the temporary closure of the Mimosa Regency Casino premises.