PSE Circular for Brokers No. 982-99

May 5, 1999 PSE CIRCULAR FOR BROKERS NO. 982-99 MS. GRACE B. DE GUIA Assistant Manager, Disclosure Department Philippine Stock Exchange, Inc. PSE Center, Exchange Road Ortigas Centre, Pasig City Dear Ms. De Guia : This is to formally respond to the news article that came out in the Manila Times dated May 4, 1999 issue herein it was alleged that Mr. Henry Sy is interested in acquiring a stake in C & P Homes, Inc. Please let it be known that there has been no discussion of such nature between Mr. Sy & C & P Homes, Inc. As to the issue of asset for debt swap between C & P Homes, Inc. and its creditor banks we would like to reiterate that in the normal course of business, we are in constant discussion with our creditor banks as to possible ways and means of getting better credit terms and/or rationalizing our outstanding bank loans. However, we have not received any formal confirmation that our major creditor banks have finally agreed as the article reported, to debt for asset swap arrangements with C & P Homes, Inc. Rest assured that we have been in compliance with the disclosure requirements of the Philippine Stock Exchange and the Securities and Exchange Commission and we will immediately inform your good office should such disclosable events. We hope we have sufficiently addressed your concerns. Sincerely, (SGD.) JERRY M. NAVARRETE President