PSE Circular for Brokers No. 1115-98

May 25, 1998 PSE CIRCULAR FOR BROKERS NO. 1115-98 Philippine Stock Exchange Disclosure Department Listings and Disclosure Group 4/F Philippine Stock Exchange Center PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Mr . Reynold P . Ong Vice President, Listings & Disclosure Group Dear Sirs : This is to give advice that at the meeting held on Wednesday 20, 1998, the Board of Directors approved the increase of the authorized capital stock of Prudential Bank from PHP575,000,000.00 to PHP1,150,000,000.00 divided into 10,000,000 common shares with a par value of PHP100 each and 1,500,000 preferred shares with a par value of PHP100 each. The Board likewise approved a stock dividend declaration to all common stockholder of 39% to be applied in payment of the 25% subscription required for the proposed increase in the capitalization of the Bank. Record date for the declaration shall be fixed by the Securities and Exchange Commission. It is of course understood that the resolutions of the Board authorizing the increase of capital stock and the declaration of stock dividends to common shareholders shall be submitted to the stockholders of the Bank for approval in a special meeting to be called for the purpose. Very truly yours, (SGD.) LAURO J. JOCSON Vice President