Global Equities, Inc.

May 8, 1998 PSE CIRCULAR FOR BROKERS NO. 987-98 May 7, 1998 Disclosure Department/ Listings and Disclosure Group Philippine Stock Exchange, Inc. Philippine Stock Exchange Building Ortigas Center, Pasig City RE : Global Equities, Inc . Gentlemen : This is in furtherance to your verbal queries regarding our disclosure on the Company's declaration of stock dividends equivalent to Three Hundred Seventy Five Million Pesos (P375,000,000.00). Please be advised that in the meeting of the Board of Directors held on 4 May 1998, the Board decided to increase the authorized capital stock of the Company from Two Billion Pesos (P2,000,000,000.00) to Three Billion Five Hundred Million Pesos (P3,500,000,000.00), Due to the Company's retained earnings and additional paid up capital as of 31 December 1997, the Board decided to declare stock dividends in support of the increase. Inorder to comply with Section 38 of the Corporation Code which requires that at least 25% of the increase in the authorized capital stock must be subscribed and at least 25% of the amount subscribed must be paid, the Board approved the declaration of stock dividends equivalent to Three Hundred Seventy Five Million Pesos (P375,000,000.00). cdt We inform you that the Company has a total paid up subscription of 1,586,637,701 shares. As of date, the Company has pending applications for approval of a Management Stock Option covering 120,559,330 shares and Directors Stock Option covering 24,111,866 shares with the Securities and Exchange Commission ("SEC"). If the SEC disapproves our applications for the Management Stock Option and Directors Stock Option, the stock dividends will represent 23.63% of the total subscriptions. On the other hand, if the SEC gives its approval to the Management Stock Option and Directors Stock Option, the stock dividends will represent 21.66% of the total subscriptions. We hope that we have sufficiently responded to your queries. Should you have any points of clarification to the foregoing, please do not hesitate to let us know. Very truly yours, GLOBAL EQUITIES, INC. By: (SGD.) MICAELA V. ZORRILLA Assistant Secretary