PSE Circular for Brokers No. 1220-99

May 27, 1999 PSE CIRCULAR FOR BROKERS NO. 1220-99 Disclosure Department PHILIPPINE STOCK EXCHANGE Exchange Road, Ortigas Center Pasig City Fax No 637-88-11 Attention: Ms . Grace B . De Guia Asst . Manager Dear Ms. De Guia : This is to clarify today's article in the Philippine Daily Inquirer entitled "EBC to Sell $200M in PCIB shares". EBC Investment, Inc. and Equitable Banking Corporation ("EBC", together, the "Equitable Bank Group") are considering various options at structuring its ownership in Philippine Commercial Bank (PCIB). The Equitable Bank Group appreciates the advantages of forging partnerships through equity participation with foreign financial institutions, particularly, the prestige and international Commercial networks they can provide. Hence, the Equitable Bank Group does not discount acceptance of investments from foreign partners but nothing definite has as of yet been concluded with any potential investor. As a matter of course, therefore, if the Equitable Bank Group does permit foreign partners into PCIB, the mode of their investment whether via a direct participation in PCIB or a swap with EBC shares, is even more an indefinite matter. LibLex Finally, there is no pre-determined intention to use these potential foreign investments, if permitted by the Equitable Bank Group, to pay for the PCIB shares of the Social Security System (SSS), the Government Service Insurance System (GSIS) or even the minority shareholders Obviously, any sale of the PCIB shares of SSS, GSIS and the minority shareholders will be subject to the consent of said shareholders and is not within the control of EBC. We hope we have sufficiently clarified this matter and consequently, request that you lift the suspension order your office has issued against the trading of EBC's shares. We trust you will give this matter your preferential attention. Thank you. Very truly yours, (SGD.) ROMULAD U. DY TANG Corporate Information Officer