Philippine National Construction Corp.

April 22, 1999 PSE CIRCULAR FOR BROKERS NO. 853-99 SUBJECT : Philippine National Construction Corp . In reply to the Exchange's query regarding the news article entitled "Gov't to sell PNCC's P10B assets, franchise" published in the April 5, 1999 issue of the Malaya newspaper, Philippine Construction Corp . ("PNC") clarified that: ". . . As you are aware the privatization issue of PNCC has been a long drawn activity of the government since 1986 when the Asset Privatization Trust was created under Proclamation 50. The direction to privatize is to be seriously pursued under the present Administration's mandate. Please recall that this thrust was bannered in His Excellency, President Joseph Ejercito Estrada's inaugural address and reiterated in his State of the Nation Address in July 1998. In this regard, allow me to state the following clarification on the items relevant to the article: 1. The P10B asset value is based on the book value of assets as reflected in the 1997 PNCC Financial Statements, the audit for which was recently completed by the Commission on Audit. 2. As stated, a floor price has yet to be pegged . The P10B asset value thus will not necessarily be the selling price. The Asset Privatization Trust (APT) which is the designated disposition entity of PNCC will handle the price setting. LLjur 3. The PNCC Committee on Privatization has been formed and has been coordinating with APT to formulate a suitable financial rehabilitation and privatization scheme for PNCC. Continuing discussions are being undertaken in connection with the implementation of Administrative Order 397 issued on 13 May 1998 by the Ramos administration. . . . As regards the privatization mode only APT is mandated to finalize same. . . .. 4. As a parallel activity to the preparation of a privatization design, PNCC management pursues with vigor its Tollway operations as franchise holder and maintains its presence in the construction industry by way of various Tollway-related construction activities among others. . . . 5. In addition, prime real estate properties located in EDSA, Bicutan and Roxas Boulevard are part of PNCC ownership. The Silangan, Calamba property is located along the SLEX. 6. The tie-ups by way of Joint Ventures with Citra Metro Manila Tollways Corp. and the Lopez-owned First Phil. Infrastructure Development Corp. have been sealed with Joint Venture Agreements executed way back in August and July 1995, respectively. . . ." For your information. (SGD.) JOSE LUIS U. YULO, JR. President and CEO