PSE Circular for Brokers No. 709-00

March 20, 2000 PSE CIRCULAR FOR BROKERS NO. 709-00 March 17, 2000 Ms . Luisa W. Buenaventura Supervisor, Disclosure Department Philippine Stock Exchange 4th Floor, Philippine Stock Exchange Centre, Exchange Road, Ortigas Center, Pasig City Dear Ms. Buenaventura : This is in connection with the news article published in today's issue of the Business World reporting that following a petition filed by First Paragon Corporation (FPC), franchise of Uniwide Holdings, Inc., the Securities and Exchange Commission (SEC) recently approved the release of P3.5 million for every Uniwide Family Store outlet delivered to its new owner, I Mart International Corporation (I Mart). We would like to inform you that the SEC issued an order dated 10 March 2000 authorizing the release of the amount of P3.5 million from the Escrow Fund deposited with Solid Bank Corporation (SBC) per outlet delivered by FPC to I Mart International Corporation (I Mart) and upon submission to SBC of the other documents required. SEC directed FPC to deposit the amounts to be released in a special account, subject to the liens of creditors of FPC on the assets of FPC, which liens now attach to the proceeds of the sale of the assets of FPC to I Mart. Also stated in the order is that the said amounts may only be released from the special account upon motion, with due notice to the lien-holder, and approval of the SEC. A copy of the said order is attached for your reference. Very truly yours, (SGD.) JEAN I. JAVIER Investor Relations Officer IN THE MATTER OF: PETITION FOR DECLARATION OF SUSPENSION OF PAYMENT, FORMATION AND APPOINTMENT OF A REHABILITATION RECEIVER/COMMITTEE AND APPROVAL OF REHABILITATION PLAN. SEC CASE NO. 06-99-6340 UNIWIDE SALES, INC., et al., Petitioners. x--------------------------------------------x TO: SANTIAGO & SANTIAGO SIGUION REYNA, MONTECILLO Counsel for the Petitioners & ONGSIAKO Ground Floor, Ortigas Building Counsel for Creditor PBCom Ortigas Avenue, Pasig City 9th & 10th Floors, Philcom Building 8755 Paseo de Roxas, Makati City INTERIM RECEIVER UNIWIDE SALES GROUP CURATO DIVINA MABILOG NIEDO OF COMPANIES MAGTURO PAGADUAN LAW OFFICE 90 E. Rodriguez, Jr. Ave., Barangay Counsel for Creditor PCIBank Ugong, Norte, Libis, Quezon City Rm. 405 & 412 EBC Building, 262 Juan Luna Street, Binondo, Manila G E N T L E M E N : Transmitted to you herewith is a copy of the ORDER of the Hearing Panel in the above-entitled case dated March 10, 2000. Please acknowledge receipt hereof. City of Mandaluyong, Philippines. March 10, 2000. (SGD.) NATIVIDAD P. QUERIJERO Attorney V Docket and Process Division Securities Investigation and Clearing Department IN THE MATTER OF: PETITION FOR SUSPENSION OF PAYMENT, FORMATION AND APPOINTMENT OF REHABILITATION RECEIVER/COMMITTEE AND APPROVAL OF REHABILITATION PLAN SEC CASE. 06-99-6340 UNIWIDE SALES, INC., et al., Petitioners. x------------------------------------------x O R D E R For resolution is the Motion dated February 28, 2000 filed by petitioner First Paragon (FPC), which prayed that this Commission issue an Order authorizing the release of the amount of P3,500,000.00 from the Escrow Fund deposited with Solid Bank Corporation (SBC) per outlet delivered by petitioner FPC to I Mart International Corporation (I Mart) and upon submission by petitioner FPC to SBC of the documents required by Section 1.5 of the Memorandum of Agreement (MOA) dated 09 December 1999 between petitioner FPC and I Mart. Considering that the above-mentioned prayer by petitioner FPC is an implementation of the MOA, which was approved by this Commission in its Order dated December 20, 1999, and that an Order from this Commission is a condition precedent for the release of the above-mentioned amount per outlet delivered by petitioner FPC to I mart, the same is hereby GRANTED. This Commission hereby authorizes the release of the amount of P3,500,000.00 from the Escrow Fund deposited with SBC per outlet delivered by petitioner FPC to I Mart and upon submission by petitioner FPC to SBC of the other documents required by Section 1.5 of the MOA. Petitioner FPC is directed to deposit the amounts to be released in a special account, subject to the liens of creditors of Petitioner FPC on the assets of Petitioner FPC, which liens, now attach to the proceeds of the sale of the assets of petitioner FPC to I Mart. The said amounts may only be released from the special account upon motion, with due notice to the lien-holder, and approval of this Commission. SO ORDERED. City of Mandaluyong, Philippines. March 10, 2000. (SGD.) PERFECTO R. YASAY, JR. Chairman (SGD.) ENRIQUE I. FLORES, JR. (SGD.) MANOLITO S. SOLER Hearing Officer Hearing Officer