PSE Circular for Brokers No. 955-99

May 3, 1999 PSE CIRCULAR FOR BROKERS NO. 955-99 NEWS RELEASE A Brown Company, Inc . : 1998 Performance Highlights A Brown Company, Inc. (ABCI) reported a P1.22 billion revenue for its-1998 operations. The company maintained the billion-peso business level in a period when drop in consumer spending coupled with high interest rates resulted in a general still economic climate where a number of companies in the same industry have already closed shop. This was made possible by the company's revitalized management team taking immediate action to control cost and increase efficiencies while enhancing both sales and cash flow. Focus was done in ABCI's chemicals, agribusiness and distribution businesses maintaining sales volumes at 1997 levels. Positive effects of these moves, embodied in a broad strategic plan, were already felt by the last quarter of 1998. During this quarter, the, company was operating on a more profitable footing on a month-to-month basis and on an ongoing concern. 1998 fourth quarter sales levels were almost at par compared with same period in 1997; For some divisions within the company, sales figures were even better. This trend was likewise carried on up to the first quarter of 1999 with management gearing up for a growth stance this year 1998 revenues is 24% lower than 1997's P1.6 billion. The high cost of money during most of the year (averaging 21%), coupled with the ill effects, of the then prevailing economic crisis, impacted on the year's performance resulting in a year end loss of P233 million (at cost) or P263 million (at equity). But because of the quick turnaround starting the last quarter of 1998, ABCI is now confidently pursuing its growth mode for this year. With. a more nimble and competitive organization ABCI is eyeing a bigger market with new products already in the pipeline First quarter 1999 sales figures already reveal better levels compared with some period in 1997 and 1998. A Brown Company, Inc. is a holding company listed in the Philippine Stock Exchange with business interests; in chemical formulation, marketing and distribution. agribusiness, and real estate.