PSE Circular for Brokers No. 710-98

April 20, 1998 PSE CIRCULAR FOR BROKERS NO. 710-98 April 17, 1998 PRESS RELEASE METRO PACIFIC CORPORATION TO ACQUIRE MAJORITY INTEREST IN NEGROS NAVIGATION CO . , INC . Metro Pacific Corporation ("MPC') today announced that it has signed an agreement to subscribe for 900 million new shares in Negros Navigation Co., Inc. ("Nenaco") at Peso 1 per share. Following this investment, MPC will hold an interest of approximately 55 per cent in the enlarged capital of Nenaco. Nenaco is one of the leading local integrated passenger and cargo carriers with operations throughout the Philippines, including a port facility in Bacolod. The Group's fleet has been expanded rapidly over recent years and now includes some of the most well equipped combined passenger/cargo inter-island vessels, modern fast catamarans, and conventional container vessels. Nenaco has developed a well-deserved reputation for the reliability and quality of its services, including an unrivalled attention to customer service. The proceeds from the issue of new shares will be used to reduce Nenaco's debts and provide funds for working capital purposes. In addition, several international transportation companies have approached Nenaco with a view to investing in the company or establishing strategic alliances. Management will continue to investigate such potential relationships to enhance the existing operations and for possible further expansion into allied businesses. LLjur MPC's investment in Nenaco represents a diversification from its existing core businesses of property, telecommunications, consumer products, packaging, and banking. The existing requirements of MPC's consumer products and packaging divisions for distribution support, however, are expected to result in benefits being derived from this investment at an early stage. In addition, Nenaco's operations are well established, with experienced management, and quality vessels ideally suited to the present and projected demand in the Philippines. This investment, therefore, provides MPC with an efficient entry into the infrastructure sector, where MPC has previously indicated its intention to consider opportunities, through a trusted local carrier. The subscription price of Peso 1 per share represents a premium to the existing market price, but a discount to Nenaco's net asset value per share. The inter-island transportation business is anticipated to be a significant contributor to the future development of the Philippines, and this sector has experienced consistent growth over many years. With an increasingly mobile population, and greater economic development throughout the Philippines, the future prospects for Nenaco are very encouraging. MPC supports fully the business strategies followed by management and intends to work with the existing personnel. LexLib Mr. Daniel L. Lacson, Chairman and Chief Executive Officer of Nenaco, commented that " The investment by Metro Pacific provides Nenaco with a strong partner to assist the Group in improving its financial position . This investment also represents a valuable endorsement of the strategic decisions taken by the Group over recent years, and Metro Pacific's expertise and resources should provide many benefits to the operations . With a fresh equity infusion, and having now commissioned substantially all the new vessels, Nenaco is well positioned to expand its passenger and cargo volumes, continuing its ambition of providing an affordable, reliable, and high-quality transportation service ." Mr. N.L. Nazareno, President and Chief Executive Officer of MPC, commented " Nenaco is a sound business that has made many positive and innovative initiatives to improve the important inter-island transportation industry . The quality of its fleet and the experience of its personnel create an excellent base upon which to develop and expand the business . We are delighted to have reached agreement with Nenaco to make this investment, and we look forward to a long and prosperous relationship ." LLpr For further information contact : Negros Navigation Co., Inc. Mr. Daniel L. Lacson, Jr. Chairman and Chief Executive Officer Tel: (034) 22655 Metro Pacific Corporation Mr. Ian Wilson Group Vice President Tel: 810 5345