PSE Circular for Brokers No. 864-99

April 23, 1999 PSE CIRCULAR FOR BROKERS NO. 864-99 April 22, 1999 Philippine Stock Exchange 4/F Philippine Stock Exchange Exchange Road, Ortigas Center Pasig City Attention: Ms . Grace B . De Guia Assistant Manager Disclosure Department RE : Ionics Circuits, Inc . Gentlemen : Please be informed that at the meeting, held today, the Board of Directors of Ionics Circuits, Inc. (the "Company") agreed, subject to appropriate shareholder approval, to: (i) spin off its Electronic Manufacturing Services (EMS) division into a wholly owned subsidiary by selling all its assets associated with said division in exchange for shares of stock of said subsidiary; (ii) undertake a public offering and listing of the shares of said subsidiary on the Stock Exchange of Singapore; and (iii) amend the principal purpose of the Company in its Article of Incorporation changing the same from manufacturing to that of a holding company. The public offering is expected to raise approximately P1.6 to P2.2 billion, which represents up to 25% of the said subsidiary's enlarge share capital. The Company is also considering selling a portion of its shares in the said subsidiary equivalent to up to 50% of the public offering. The subsidiary will used the proceeds from the sale of its primary shares to upgrade and expand the capacity of the EMS operations. On the other hand, the Company will use the proceeds raised from the sale of secondary shares in the said subsidiary to finance the capital expenditure program of its other subsidiaries. LLjur The Board of Directors expects that the spin-off will not adversely affect the consolidated financial statements of the Company and will not result in any material difference in the nights of the shareholders of the Company. The proposed spin-off, as well as the amendment of the Company's primary purpose, will be presented to the stockholders for approval during the Company's annual Stockholders' Meeting scheduled to be held on May 28, 1999. Very truly yours, (SGD.) MANUEL R. ROXAS Corporate Secretary