PSE Circular for Brokers No. 132-00

January 21, 2000 PSE CIRCULAR FOR BROKERS NO. 132-00 January 20, 2000 Disclosure Department Listings & Disclosure Group Philippine Stock Exchange, Inc. 4/F PSE Center, Exchange Road Ortigas Center, Pasig City Dear Sirs : We wish to inform you that the Stockholders of the Bank of the Philippine Islands (BPI) at its meeting this morning (January 20, 2000) approved and confirmed the following: prcd 1. Plan of Merger of Ayala Insurance Holdings Corporation (AIHC) with and into BPI, with BPI as the surviving entity; 2. In relation to BPI and AIHC merger, issuance of up to seven(7) million new shares to minority stockholders of Ayala Life Assurance, Inc. and FGU Insurance Corporation, and denial of Pre-emptive rights of existing BPI stockholders on these shares; and 3. Plan of Merger of Far East Bank and Trust Company (FEBTC) with and into BPI, with BPI as the surviving entity, subject to the approval of the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission. Thank you. Very truly yours, (SGD.) CARLOS B. AQUINO VP Corporate Secretary