TO: CC: FROM: SUBJECT : DATE: 010 - 2011

ALL Technical Sales Representatives/ Sales Administration MTQuillamor/PSAbela/ LDABataclan/ RPSerojales MCDDiopenes PRICE ADJUSTMENT FOR SELECTED BAKELS PRODUCTS EFFECTIVE 16 JULY 2011 22 June 2011 e-Circ

The relentless increase in various basic raw materials like sugar and flour, as well as the unstable supply of cocoa leading to prolonged high market prices and the decline of our local currency, has altogether contributed to severely eroded margins for most of our products. And after careful assessment of current market conditions, we deemed it prudent to only limit the price adjustment on products with critically low margins which we can no longer absorb, as an interim measure. It would be beneficial to all parties that the price adjustment is properly explained to our customers in the aftermath of raw material increases. We have tried to hold off the price increase for a while, but must now make the necessary adjustment where we can no longer absorb such increases. Effective July 16, a necessary price adjustment for the following products will be effected.

ENDUSERS
Product Description Bakels Sweet Dough Blend Ovalett Fino Chocolate Cake Mix Pettinice RTR Regular White Fondant Fino Dark Chocolate Buttons Fino Dark Chocolate Chips Pack Size PRICE PER KG (PHP) With VAT 12 x 1 kg 12 x 1 kg 12 x 1 kg 6 x 750kg 5 kg 5 kg 108.90 212.93 143.22 283.55 328.34 315.95 Without VAT 97.23 190.12 127.88 253.17 293.16 282.09 PRICE PER PACK SIZE (PHP) With VAT Without VAT 1,306.80 1,166.79 2,555.16 1,718.64 1,275.98 1,641.68 1,579.73 2,281.39 1,534.50 1,139.27 1,465.78 1,410.47

DEALERS/WHOLESALES
Product Description Bakels Sweet Dough Blend Ovalett Fino Chocolate Cake Mix Pettinice RTR Regular White Fondant Fino Dark Chocolate Buttons Fino Dark Chocolate Chips Pack Size PRICE PER KG (PHP) With VAT 12 x 1 kg 12 x 1 kg 12 x 1 kg 6 x 750kg 5 kg 5 kg 101.28 198.02 133.19 263.70 305.35 293.83 Without VAT 90.43 176.81 118.92 235.44 272.64 262.35 PRICE PER PACK SIZE (PHP) With VAT Without VAT 1,215.32 1,085.11 2,376.30 1,598.34 1,186.64 1,526.76 1,469.14 2,121.70 1,427.09 1,059.50 1,363.18 1,311.74

Prior to the implementation of the said price adjustments, please take note of the following: INFORMATION DISSEMINATION Please ensure that users of our products are informed immediately or as soon as this notice is received to give the customers ample lead time to place orders before the adjusted prices are in effect. PROTECTION ORDERS Orders may be placed in anticipation of the price increase scheduled on July 16, 2011. However, these should be booked and dispatched not later than July 15, 2011 to still avail of the prevailing prices. Stocks on hand will also have to be considered if all protection orders can be served. New prices will apply for all deliveries made from July 16, 2011 onwards. PRICING REFERENCE GUIDE Expect a new price list to be released soonest to incorporate new prices and new products. You may, in the meantime, refer to the attached page as reference for the products where adjustments will be effected. For your concerns and clarifications, you may get in touch with the undersigned.

M.T. QUILLAMOR, JR. General Manager

M. C. D. DIOPENES National Sales & Market Development Manager