Ayala Corporation

Ayala Corporation (PSE: AC) is a holding company for the diversified

interests of the Ayala Group. It was founded in 1834 and is the oldest and
largest conglomerate operating in thePhilippines. The company has a portfolio
of diverse business interests including investments in retail, real estate,
banking, telecommunications, electronics, information technology, water
infrastructure and management and business process outsourcing.

In the late 1800s, Ayala participated in the construction of the Colgante and
the Ayala bridges and in 1888, it introduced the first tramcar service in the
Philippines. Ayala was mainly responsible for the development of Makati as
the financial district of the Philippines.

Ayala was recently named (2007) by Asiamoney as the country's best

managed large-capitalization company.

Attached companies

The Ayala Corporation is currently the holding company for the following:

 Real Estate- Ayala Land, Inc. which includes Ayala Malls, Avida
(formerly Laguna Properties), Alveo (formerly Community innovations),
Ayala Land Premier, Ayala BusinessScapes, Ayala Hotels, Makati
Development Corp. & Ayala Property Management
 Financial Services- Bank of the Philippine Islands
 Telecommunications- Globe Telecom, Inc.
 Utilities- Manila Water Company Inc.
 Electronics and Information Technology- Integrated Microelectronics,
Inc. , Azalea Technology Investments, Inc.
 Automotive- Ayala Automotive Holdings Corporation, Honda Cars
Makati, Inc., Isuzu Automotive Dealership, Inc.
 International- Ayala International Pte Ltd, Integreon Managed
Solutions, Inc.
 Social Commitment- Ayala Foundation Inc.
 BPO Call Center- eTelecare
Retirement of the Ayala chairman

In January 2006, the board of directors publicly announced the decision

by Jaime Zobel de Ayala to retire as chairman of the corporation by April
2006. The board also announced Zobel de Ayala's appointment as chairman
emeritus upon his retirement. His older son, Jaime Augusto Zobel de Ayala, is
now the current Chairman and Chief Executive Officer of the corporation while
his younger son, Fernando Zobel de Ayala has assumed the position of
President and Chief Operating Officer. The family holding company Mermac
continues to hold a majority stake in Ayala Corporation.

On September 10, 2007, Conglomerate Ayala Corp. announced that it will buy
back P2.5-billion worth of its shares, raise the price of its stockand
"enhance shareholder value." Its board of directors approved the creation of
a share buyback program involving P2.5 billion or about 1.3% of the
company's current market capitalization. Ayala Corp.'s shares declined by
2.1164 % to P462.50.

P 140 million damages

On December 21, 2007, Judge Reynaldo Daway, Branch 90, RTC, Quezon
City ordered Ayala Land offshoot Avida Land Corporation (formerly Laguna
Properties Holdings Inc.) to pay P140 million in damages to Filipino inventor
Edgardo Vazquez, president and chief executive of Vazquez Building
Systems Corp. and a former president of the Filipino Inventors’ Society. It was
a copyright violation regarding a modular housing system “Vazbuilt.”

2007 Glorietta explosion

On January 22, 2008, Raul M. Gonzalez absolved Ayala Land, Inc. (ALI)
(attached company of holding company for Real Estate Ayala Corporation),
from liability in the 2007 Glorietta Explosion. But Gonzalez stated that Ayala
Property Management, Inc. (APMC), is still under investigation.