February 10, 1999
FENWAY INTERNATIONAL RECEIVES POSITIVE BANK VALUATION
REPORT ON PALAWAN PROJECT
NEWPORT BEACH, CA. Feb.10, 1999-FENWAY INTERNATIONAL, INC. (FWIN-OTC BB)
Fenway International Inc. announced today it has received a very positive Bank Valuation Report from independent consultant, Mr. George R. Beetle, P.Eng. Mr. Beetle is the president of GBC Systems, Inc., a financial advisory and analysis firm with offices in Philadelphia, PA and Hong Kong.
This report was commissioned for presentation to the German banks providing loans and the German Government providing export credits for the Palawan Cement Project. These entities required an independent report addressing whether the Project could cover operating costs and debt service. The GBC report confirms that Fenway's proposed Palawan Cement Project is economically viable and competitive in both the domestic Philippine market and the export market of the Pacific Rim and Asia.
In a covering letter to Fenway International, Mr. Beetle states: "Conclusions drawn from the analysis are summarized in Chapter 1 of the report. Important among these is the validation of decisions taken since feasibility investigations were completed in 1995 to change the size and configuration of the plant Fenway will build at Scott Point. These decisions strengthen the Project financially by transforming production and cost capabilities. The valuation assessments have taken the adopted strategy - of producing cement products from native materials in Palawan for distribution to multiple regional markets in the Philippines and other nearby countries, accepting prices set by other producers in such regions - as point of reference and foundation for analysis. All possible difficulties have been examined in depth, disclosing no significant obstacles for the plant at Scott Point as presently configured. The strategy will succeed. Financial projections confirm that lenders supporting the Project will be fully protected, as to both security for borrowings and the plant's capacity to carry related financial obligations from current operations with adequate safety margin. Computed returns to equity investors are very attractive and equally robust. Those who join Fenway in the Project will be well served by it. There are no reasons why the financial support Fenway seeks for the Project should not be forthcoming under terms supporting your timetable to begin commercial operations in late 2002."
Fenway International Inc. is the lead proponent in the development of two large commercial grade (portland) cement production facilities in the Philippines. Upon completion, Fenway International will be the largest cement manufacturer in the Philippines and one of the largest suppliers in the entire Southeast Asian region.
For more information contact:
ON BEHALF OF THE BOARD
Certain statements to this Corporate Update constitute "forward looking" statements within the meaning of section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
The NASD and other regulatory bodies have neither approved nor disapproved the information disclosed herein.
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