Clarification of news article

MANILA, Philippines - We write in connection with the news article written by Mr. Victor C. Agustin entitled “Cash-strapped Erap targets big-name tax delinquents” published in the Money-Go-Round column of The Philippine STAR yesterday, Nov. 18, 2013. The said article reads in part:

“After seizing the Harrison Plaza open carpark in favor of City Hall, Manila Mayor Joseph Estrada has unleashed his revenue-strapped minions on other bold-faced names for alleged real estate tax delinquencies.

Top on the Erap list: the Tutuban shopping center which is leased by Prime Orion Philippines Inc. for allegedly having accumulated a whopping P845 million in unpaid taxes since 2002. xxx”

In the spirit of fair play and by way of clarification, please be informed that the alleged real property tax (RPT) delinquency pertains not to Prime Orion Philippines Inc. (POPI) (a listed company), but to the Philippine National Railways (PNR). PNR owns the land where Tutuban Center (which is owned by Tutuban Properties Inc. (TPI), an indirect subsidiary of POPI) is located. We understand that PNR has previously received RPT assessments from the Manila City Government, and PNR has filed a case against the latter questioning the validity of said assessments. However, a Notice of RPT Delinquency and Warrant of Levy were recently served on PNR. Neither TPI nor POPI has received any such notices. Under TPI’s Contract of Lease with PNR, TPI has the obligation to pay the RPT on improvements, which taxes have been paid faithfully by TPI; on the other hand, the RPT on the property is for the account of PNR.

We hope that this explanation would be published in your paper so that the public may know the correct facts on this issue.

Very truly yours,

DAISY L. PARKER

Corporate Secretary