The primary responsibility of maintenance management and personnel is to
    ensure the availability of equipment at all times.  Machine downtime has to be at     
    its absolute minimum and unscheduled plant shutdowns nil.  To cope with this
    important responsibility, industries require the assistance of qualified and reliable
    specialists, mainly because there is some lack of well-trained and qualified service
    contractors and personnel.  EUTECTIC + CASTOLIN provides such specialists - and
    there are more than 4,000 of them assisting various markets and industries round    
    the clock the world over.  In the Philippines, Euromerica has its own team of    
    qualified specialists.

           EUTECTIC + CASTOLIN is the world’s leader in protective maintenance
    welding,  a technology with massive implications for world industry.  It gives
    companies, large and small, the opportunity to extend, often dramatically, the service
    life of the thousands of metallic working parts that are employed in plant, machinery,
    and equipment; and in doing so, reduces breakdowns, cuts expensive stocks of back-
    up spares and minimizes replacement costs.  At national and global levels, it is a
    technology that can conserve the vast amounts of energy and materials being
    consumed by the unnecessary process of replacing worn parts prematurely, not to
    mention potential savings in precious foreign exchange.

           Through the use of protective maintenance welding, these parts are treated   
    with wear-resistant alloys.  There are two aspects of the technology:  treatment to
    prolong original service life - before the part goes into service;  and treatment to     
    put worn or broken parts in existing use back to work time and time again.

           EUTECTIC + CASTOLIN started to pioneer the materials and processes needed
    for this treatment exactly ninety four years ago this year (2000) and sponsored the
    establishment of the EUTECTIC + CASTOLIN INSTITUTE in 1967, which operates a
    continuing educational program, through 120 documentation and training centers, for
    the advancement of maintenance welding technologies.  Hundreds of customers and
    representatives of various industries and institutions from all over the world visit     
    the Institute each year.
           EUTECTIC + CASTOLIN is the first and only company in the repair and
    maintenance welding industry with an Approved Application Procedure Data Bank,
    available on a worldwide basis.  With this information source, the Eutectic      
    salesman does not go to a customer empty-handed.  The more successful   
    Applications Specialists know by heart typical applications, or solutions, by industry,
    equipment, and machine part.

           The job of the Eutectic salesman is not just to smile and ask the customer   
    what he needs.  He will not only establish the need, but will have the pleasure to     
    go through a continuing learning process and have the urge to teach and transmit
    knowledge to his customers.  At the same time, he will be forceful and vigorous in
    expressing the need to save, and that the services of EUTECTIC + CASTOLIN are
    unusual and unique, and that everyone should join in the fight to minimize the use    
    of expensive spare parts.

           Continuing training is important not just for the Eutectic salesman, but also     
    for his customers.  Customer training is given to selected people at all levels,   
    because trained customer personnel become friends and admirers of E+C and will
    facilitate   and make possible customer investment in the training of its people.

           The Eutectic sales force is applications-oriented, because by being so, it is    
    able to immediately identify applications, offer solutions to problems, and become      
    a “partner” in the maintenance process.

           The E+C specialist performs beyond the level of an average person.  His
    perpetual, practical and disciplined training reinforces his selling skills and his ability
    to provide proper emphasis on TeroEconomics, through which he can prove the point
    that buying the right product, or solution, is the cheapest and most effective
    way to handle repair and maintenance problems.

           The Eutectic selling process has an added dimension, and this is the
    management selling program.  We reverse the process, if necessary, meaning, from
    top to bottom.  The natural fear, or timidity, to talk to decision-makers must be
    overcome.  For there is no more CEO today who will refuse to listen to a salesman  
    who can save money for his enterprise.

           Some 25 years ago, Eutectic established the “Conservationist of the Year”   
    award program in many countries of the world, to promote protective maintenance   
    and reclamation welding technology by drawing the attention of world industry to     
    the considerable amounts of money, material and energy that can be saved, and in  
    the process give due recognition to industrial firms and institutions, as well as
    individuals, that have effected the most spectacular savings of energy and natural
    resources in a single repair welding job, or in implementing planned repair and
    maintenance program.  “Conservationist” was first introduced in the Philippines in
    1987, in partnership with the Maintenance Association of the Philippines (MAPHIL).   
    When Euromerica reintroduced the program, it was jointly sponsored by MAPHIL and
    the Philippine Society of Mechanical Engineers (PSME).   The last awards were given   
    in October 1997.  Once the ongoing financial crisis is over, “Conservationist” will   
    again be an annual undertaking.

           Relative to the foregoing, as E+C’s exclusive distributor in the Philippines,
    Euromerica is pleased to announce that it has effectively survived the crisis, thanks   
    to the cooperation and support of all concerned, especially you our customers.  We  
    are in good standing with our principal, CASTOLIN SOCIETE ANONYME and are,
    therefore, able to support our operations with adequate inventories of all items that
    are normally needed by customers.

           Our technical back-up is unbeatable.  The combined experiences of      
    Euromerica’s management team in the  field of protective coatings and repair and
    maintenance welding, for example, is in the range of 100 years.  Our Sales and
    Technical Director, Mr. Nestor Opulencia, with his 31 years of uninterrupted Eutectic
    experience, is considered the dean in this field.

           Only last month this year, Prof. Francis K. Kasai, retired Marketing Director of
    Eutectic of Japan and former Executive Director of Japan Thermal Society, came on
    board as Senior Consultant and Advisor.  He will, however, be spending part of his
    time at the University of the Philippines, as Industry Adjunct Visiting Professor in    
    the Department of Mining & Metallurgy.  Professor Kasai has a Masters degree in
    Mining & Metallurgy from the University of Minnesota.

           E+C and Euromerica are more than prepared, willing and able to serve the   
    needs of industries here in the Philippines.  We are truly excited about it.

           We sincerely thank you for your patronage.

                                                                      Yours very truly,

                                                                 SALVADOR P. MALBAROSA

    June  2000