Inquirer Holdings, Inc.

April 3, 2001 INQUIRER HOLDINGS, INC. c/o Valdes, Valdes, Rodulfa & Associates 4th Flr.,CJV Bldg, 108 Aguirre St., Legaspi Village, Makati City Gentlemen : This refers to your letter dated February 16, 2001 requesting for the waiver of penalty imposable on the aforenamed corporation under Section 43 of the Corporation Code of the Philippines. Verification of the Financial Statement for the year ending December 31, 1998 shows that the Net Income in the Balance Sheet for the year is P17,580,083 while the paid-up capital is only P500,000.00 thus registering an excess amount of P17,080,083 in excess of the paid-up capital which as a general rule is prohibited under the aforecited section of the Corporation Code. The letter-writer, however, takes exception to the aforementioned penalty and thus requests that the assessed penalty of P10,000.00 be waived considering that the corporation has no intention of retaining the questioned surplus profit in violation of Section 43 paragraph 2 of the said Code. It was further alleged that the board of directors and stockholders in a meeting held on March 31, 2000 already appropriated P20M of its retained earnings for an increase in authorized capital stock thru declaration of stock dividend. This was disclosed in the Notes to Financial Statements of December 31, 2000 and that said increase was already approved by the Commission on October 31, 2000. SaCDTA In view of the evident fact that the corporation has not the slightest intent to violate the subject law and that the reasons cited in the mentioned letter appear to be justifiable, the imposed penalty of P10,000.00 is hereby waived/recalled. Very truly yours, (SGD.) FE ELOISA C. GLORIA Commissioner