Subic Water letter

To Our Valued Customers,

We have implemented a tariff increase last July 19, 2006 pursuant to an approved resolution of the Subic Bay Water Regulatory Board (SBWRB) which was later reviewed and reversed by the Subic Bay Metropolitan Authority (SBMA).

SBMA has subsequently ordered Subicwater to revert back to the old water rates. In accordance with our Franchise Agreement, Subicwater is now calling for an Adjudication to resolve this issue.

Meanwhile, following this order from SBMA, we are reverting to the old rates and shall accordingly credit to your future water bills any amount that you have paid for the bills that you received under the new rates.

Thank you very much!

Subic Water & Sewerage Co., Inc.