PSE Circular for Brokers No. 877-98

April 30, 1998 PSE CIRCULAR FOR BROKERS NO. 877-98 Press Release Keppel Philippines Group restructures its operations The Keppel Philippines Group plans to further grow and maximize the shareholder value of its three listed companies through a major restructuring exercise. Under the proposed restructuring, the Group will consolidate its shiprepair, shipbuilding and marine related operations in Batangas and Cebu under Kepphil Shipyard Inc. (KSI). LLjur Cebu Shipyard and Engineering Works Inc. (CSEW) will infuse all its shipyard assets and businesses into its wholly owned subsidiary, Keppel Cebu Shipyard Inc. (KCSI). It will then sell all the shares of KCSI to KSI in a share-swap arrangement that would preserve the earnings per shares of KSI and CSEW. KSI will be renamed Keppel Philippines Marine Inc. (KPMI). CSEW will then become a property development company spearheading the Group's property investments and will be renamed Keppel Philippines Properties Inc. (KPPI). It will acquire from Keppel Philippines Holdings (KPH) its property related investments including assets in SM Keppel Land Inc. in exchange for CSEW's shares in KSI. SM Keppel Land is a joint venture company with the SM Group currently developing an office and residential tri-tower complex in Ortigas Center. Subsequently, the Group's other investments in property will housed under KPPI. The streamlining of our operations will enable us to focus and grow our core businesses here. Furthermore, we want to give investors here a wide choice of investment portfolio under the Keppel flag. "It is also an affirmation of our confidence in the long term growth and development of the country," said Mr. Loh Wing Siew, Chairman of Keppel Philippines Holdings and Managing Director Of Keppel Corporation Limited, its parent company in Singapore. Keppel Corporation is a regional conglomerate with core businesses shiprepair and shipbuilding, offshore and specialised shipbuilding, property investment, development and management, banking and financial services, engineering, telecommunications and transportation. It is also the majority shareholder of Keppel Monte Bank. Details of the scheme of the restructuring will be despatched to shareholders of KPH, KSI and CSEW. The scheme will be conditional upon the approvals of shareholders of the three listed companies. cdlex For further details, please call Mr. Kevin Chee, Treasurer/VP for Administration, Keppel Philippines Holdings Inc., at Tel (632) 8921816