Mr. Vicente O. Abarquez

February 15, 2001 MR. VICENTE O. ABARQUEZ FERCOM MARKETING INC. Rm. 509 Dona Generosa Bldg., 282 EDSA Extension, Pasay City S i r : This has reference to your letter dated November 22, 2000 inquiring whether a stockholder has the right to ask that the increment in value of the real properties acquired by the corporation through the years be included in the valuation of the book value of its shares at the time of sale. Relative thereto, please be informed that the value of company's shares shall be determined on the basis of the current/appraised value of the property, plant and equipment of the company and the resulting increment shall be included in the computation of the book value of the shares thereof. Stated differently, in order to determine the true value of a company's shares of stock, property plant and equipment must be stated at their current value/appraised value. The resulting revaluation increment will form part of the stockholders' equity, thus included in the computation of the book value of its shares. In effecting such increase, an appraisal report containing the appropriate valuation of the properties of the corporation should be submitted to the Commission and such increase should be duly disclosed in its Financial Statements particularly on the stockholders' equity stated therein. Accordingly, your query is answered in the affirmative. HICATc Very truly yours, (SGD.) FE ELOISA C. GLORIA Commissioner