Jollibee 1st QTR. Income Up 30.2%

May 4, 1998 PSE CIRCULAR FOR BROKERS NO. 903-98 JOLLIBEE 1st QTR . INCOME UP 30 . 2% Jollibee Foods Corporation announced that its first quarter consolidated net income after tax grew 30.2% to P157.6 million from P121.1 million in the same period last year. Earnings per share similarly rose to P0.179 in 1998 from the year ago level of P0.137. The company the country's largest and only publicly-listed fastfood corporation also reported realized and unrealized foreign exchange gains totaling P23.3 million during the period. Including these non-recurring items, net income totaled P180.9 million, or an increase of 49.4% from the previous year earnings level. cdlex First quarter gross revenues increased 26.3% to P2.43 billion compared to the P1.92 billion registered last year. The company maintained its growth momentum on the back of robust systemwide sales of its major brands, the Jollibee and Greenwich systems. "We managed to strengthen our financial performance despite the economic pressures brought about by the region-wide currency uncertainties as a result of our strategic efforts to fortify our market presence and improve operating and cost efficiencies," said Jollibee vice president and chief finance officer Raffy dela Rosa. He added that the company benefited from its commitment to deliver superior-tasting food at affordable prices to its ever-loyal consumers, which augurs well in light of the current economic situation. The strong systemwide sales stemmed from the fastfood company's store expansion program for both the Jollibee and Greenwich brands, as well as continued growth in same-store sales of existing outlets. In March, Queenbee Resources Corporation, the company's special purpose vehicle for warrants issues, had a public offering of 220 million covered warrants that are exercisable into Jollibee shares. The warrant offering which was also open to foreign investors was well received. In conjunction with the warrant offering, Jollibee sold 73.2 million common shares during the period which allowed it to raise about P1.36 billion. Its issued and subscribed capital stock now totals 954 million shares. The capital-raising exercise will enable the company to pay all of its debts. "This debt-free status coupled with our strong cash flow from operations will position the company with financial strength to meet the challenges in the market and to aggressively pursue growth opportunities," dela Rosa explained. The company said that it continues to look to the future with cautious optimism with expectations of good growth for the balance of 1998.