PSE Circular for Brokers No. 807-98

April 24, 1998 PSE CIRCULAR FOR BROKERS NO. 807-98 PHILIPPINE STOCK EXCHANGE, INC. Phil. Stock Exchange Centre Exchange Road, Ortigas Center Pasig City, Philippines Attention: Ms . Isabel Garcia Gentlemen : Please be advised that the Board of Directors of KEPPIL SHIPYARD INC., (KSI) has approved in principle its participation in the corporate restructuring of the Keppel Group of Companies. The corporate restructuring will concentrate, rationalize and consolidate the shipbuilding and shiprepair business of the Keppel Philippines Group under one (1) listed company. That listed company will be KSI. Essentially, all shipyard operations, which includes the shipbuilding and shiprepair, will be transferred to KSI. KSI's participation in the corporate restructuring will commence when Cebu Shipyard & Engineering Works, Inc., (CSEW) transfers to KSI its shares of stock in Keppel Cebu Shipyard, Inc., a wholly-owned subsidiary of CSEW, in exchange for the issuance of shares of stock by KSI. The resultant effect would be that KSI will have majority control of Keppel Cebu Shipyard, Inc. LLjur The details of the corporate restructuring will be discussed by the Board of Directors of KSI on another date to be set prior to the Annual Stockholders' meeting scheduled on 23 May 1998. In view of the foregoing, KSI requests that trading of KSI shares be suspended from 24 April 1998 up to 22 May 1998 so as to avoid any speculation in the market. We trust that you shall give this matter your immediate action. Very truly yours, (SGD.) CHEE FOOK MENG Treasurer/VP (Administration)