First Pacific Company Limited

Press Release

14th November 1997

FIRST PACIFIC'S METRO PACIFIC 9-MONTH PROFIT UP 19 PER CENT

First Pacific Company Limited's Philippine flagship, Metro Pacific Corporation, today announced that consolidated net income increased 19 per cent in the year's first nine months to Pesos 701 million, as turnover rose 34 per cent to Pesos 5.329 billion.

Operating profit nearly tripled to Pesos 907 million, while profit before other income grew more than four-fold to Pesos 1.324 billion. The growth primarily reflected the continued success of Fort Bonifacio, the Group's major property development in Metro Manila, and Smart Communications, Inc., its integrated telecommunications subsidiary.

Net income was reduced by approximately Pesos 248 million, net of outside interests, as a result of exchange losses relating to working capital lines denominated in foreign currency. Basic earnings per share increased 13 per cent to 20.49 centavos. Basic earnings per share excluding foreign exchange losses increased 54 per cent to 27.74 centavos.

Metro Pacific's total consolidated assets increased 20 per cent to Pesos 115.7 billion at the end of the third quarter from Pesos 96.2 billion at the end of the second quarter, principally reflecting the acquisition of an additional 25 per cent in Smart. This increased the company's total economic interest in Smart to approximately 52 per cent, resulting in its consolidation at the end of the period.

Fort Bonifacio Development Corporation, which is developing the Fort Bonifacio site, performed strongly. Buyers continued to make payments for lots in respect of the initial sales of land, which generated total receivables of approximately Pesos 28 billion. A total of Pesos 16.5 billion had been received in cash as at 30th September and, in certain cases, payments were received in advance of due dates.

Pacific Plaza Towers, which is developing a twin-tower luxury apartment complex in Fort Bonifacio, made significant progress during the quarter. Its foundations are being developed and the main construction contract is expected to be formally awarded in the near future.

Smart Communications recorded continued growth, with its cellular subscriber base increasing to 550,000 users at the end of the quarter from 456,000 at the end of June.

In the packaging business, the corrugated carton division continued to obtain improvement in operating efficiencies at its new Cavite plant but suffered from foreign exchange losses and higher interest charges. AR Packaging Corporation, its flexible packaging operation, reported significantly higher sales and improved operating margins. The consumer products division continued to focus on its personal care, packaged water and paper products.

Commenting on the results, Mr Napoleon L. Nazareno, Metro Pacific's President and Chief Executive Officer, stated: "Metro Pacific has performed well in spite of higher interest rates and the depreciation of the peso. Our ability to withstand such difficulties and report a positive result is a testament to the policy of planned diversification that we have pursued over recent years.

"The present Group structure, with significant subsidiaries in real estate, telecommunications, consumer products and packaging, has created the stable platform required for the present market conditions. Its strong financial position, including cash reserves and prudent approach to corporate governance, should enable it to continue the performance for the remainder of the year. We believe that there is a positive outlook for the medium term," he said.

For further information, please contact:

Rene Banez Group Vice President Metro Pacific Corporation	Tel: (632) 811 0041
Robert Sherbin Group Vice President Corporate Communications First Pacific Company Limited	Tel: (852) 2842 4380

Company information can also be accessed on:

Web Site:

http://www.firstpacco.com http://www.irasia.com/listco/hk/firstpac

E-mail: info@firstpac.com.hk

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