OVERVIEW OF THE ALCANTARA GROUP

C. Alcantara & Sons, Inc. (CASI) is the founding company of the Alcantara Group of Companies. It was organized in 1954 by the late Conrado C. Alcantara to engage in the logging business in Mindanao. Its main product now is plywood. The Alcantara Family has since expanded and diversified into property development, agriculture, product distribution, and power generation.

Alsons Consolidated Resouces, Inc. or ACR is a publicly-listed holding company that is majority-owned by the Alcantara's through Alsons Corporation. ACR's core interests are in energy and power generation, property development, and product distribution.

ACR's investment in the Energy and Power business is concentrated in three power generation companies namely; Northern Mindanao Power Corporation (NMPC), Western Mindanao Power Corporation (WMPC), and Southern Philippines Power Corporation (SPPC). These companies are all located in Mindanao and have a current aggregate generating capacity of 190MW. ACR's investments in these companies is through two holding firms namely; Conal Holdings Corporation (Conal) and Alsing Power Holdings, Inc. (Alsing). Conal, which was organized in June 1997, is owned 60% by ACR and 40% Energy Generating Power Co., Ltd. (EGCO) of Thailand. Conal in turns owns 50.78% of NMPC and 80% of Alsing. Alsing owned 80% by Conal and 20% directly by ACR. Alsing owns 55% of WMPC and SPPC. NMPC used to own and operate two diesel-fired power plants in Iligan City with a combined capacity of 103 megawatts built pursuant to the “Build-Operate-Transfer” (“BOT”) contracts with the National Power Corporation (“NPC”). NMPC is now reduced to a generating capacity of 40MW with the expiration of the NMPC1 contract. WMPC operates a 100-megawatt diesel-fired generating facility in Zamboanga City under an 18-year “Build-Operate-Own” (“BOO”) arrangement with the NPC. SPPC, on the other hand, operates a 50-megawatt diesel-fired plant located in Alabel, Sarangani Province, 15 kilometers east of the city proper of General Santos, also under a BOO arrangement with the NPC for 18 years. ACR also has a wholly owned subsidiary, Alsons Power International Limited, a British Virgin Island-registered company which handles the development of the power plant projects of ACR.

The Company's Product Distribution business is conducted primarily through its 80.44%-owned subsidiary, Market Developers, (MADE) Inc., organized on January 31, 1974. MADE was established to market CASI products throughout the country. MADE presently markets plywood, wall panels, and industrial products. It is 80% owned by Alsons Consolidated Resources, Inc. (ACR) and 20% by the Alcantara Family. MADE is engaged in the distribution/sales of products in two major classifications: construction materials, mainly plywood and Hardiflex panels and industrial products, such as electric meters, poles, electrical wires and castables. MADE's trading and distribution operations cover products from established major suppliers which include: affiliate companies like C. Alcantara & Sons, and Refractories Corporation of the Philippines; and non-affiliate companies including James Hardie, GE Philippines, Phelps Dodge Phils., Daedong of South Korea, Yamaha of Japan and American Wires & Cables.

ACR is also engaged in the Property Development business through its subsidiary, Alsons Land Corporation or ALC. Established on November 25, 1994, ALC is primarily involved in two major enterprises, the first is a 72 hole golf course development with a residential component called the “Eagle Ridge Golf & Country Club” and the second is a 440 hectare industrial estate, otherwise known as the “Lima Technology Center”.

The Eagle Ridge Golf & Country club is a joint venture between ALC and Sta. Lucia Realty Development Inc. Fil-Estate Development Realty Corp primarily handles the sales of its golf shares and residential lots. The Eagle Ridge Golf and Country Club, a 700-hectare project located in Gen Trias, Cavite is currently one of the most sought after golf facilities in the country today. Currently the only Golf Club in the Philippines with four completed signature courses and three fully operational clubhouses, Eagle Ridge boasts of superior facilities that cater not only to golfers but also to their families and guests.

Aside from marketing it's golf and residential products, ALC, together with its subsidiary, Alsons Steel Forming Division is exploring the possibility of developing other types of housing products in the areas adjacent to its existing projects both in Cavite and Batangas and maximizing use of its remaining land holdings.

The Lima Technology Center is a 440-hectare, PEZA accredited, light-industry technology park located between the municipality of Malvar and the city of Lipa in the Province of Batangas. The techno-park is a joint-venture between Alsons Land Corporation and the Marubeni Corporation of Tokyo under a corporation known as LIMA LAND, INC. (LLI). Considered one of the premiere industrial estates in the country, the Lima Technology Center offers superior infrastructure, utilities and a professional estate management organization. Furthermore, the planned interconnection of the new STAR highway with the South Expressway and the extension of the STAR to the Batangas' International Seaport will greatly enhance the location of the estate.

Alsons Corporation was established to be a holding company for various Alcantara companies. It is 72% owned by the Alcantara Family and 28% by Alsons Development Corp. (ALDEVINCO).

ALDEVINCO is a property development company owned by the Alcantara's. It was established back in the 1960's and has developed upscale subdivisions in Davao City like the Ladislawa Village, Las Terazas Village and Woodridge.

The Agribusiness Unit or ABU of the Alcantara Group consists of four companies; SACI, AAC, FHI and ARC.

Sarangani Agricultural Company, Inc. (SACI) was established in 1962 to manage the Family's interests in cattle breeding and fruit production. It is fully owned by the Alcantara Family.

Alsons Aquaculture Corporation (AAC) is the main aquaculture company of the Alcantara Group. It was established in 1997 and began commercial operations in 1998. Its main products are milkfish, tilapia, prawns, seabass, pomfret and processed milkfish products.

Finfish Hatcheries, Inc. (FHI) was organized in 1996 and is engaged in the production of milkfish fry and fingerlings of other high-value fish species such as pomfret, seabass, grouper, etc. FHI is targeting to produce 500 M milkfish fry for the year 2000, roughly 30% of domestic requirement.

Aquasur Resources Corp. (ARC) is in-charge of marketing AAC and FHI aquaculture products in Manila and Iloilo. It is engaged in research work for the Alcantara's interests in aquaculture. Aqua Sur is 95% owned by Aldevinco and 5% by the Alcantara family.