NEWSFLASH

---

STUDIOS CUT COSTS DUE TO PESO CRISIS

Manila, Jan. 11, 1998 - Movie studios have adopted drastic cost-cutting measures due to the worsening currency situation.

Among the austerity policies of movie companies for 1998 are a 24% reduction in talent fees of top actors and directors and a retrenchment of rank-and-file employees.

The studios' new directives apply to movie stars who command salaries of P1 million and above, and to directors who earn P500 thousand and above per picture. Letters to this effect have been sent out by Regal, Viva, Star Cinema and OctoArts, informing talent managers of the move.

The managers' guild, Professional Artists' Managers Inc. (PAMI) has yet to publicly issue a response, although some members intimate that the 2% talent fee slash should be applied on a case-to-case basis. Stars who continue to draw good box office results should be spared, they proposed.

---