PSE Circular for Brokers No. 1339-98

June 16, 1998 PSE CIRCULAR FOR BROKERS NO. 1339-98 Philippine Stock Exchange Phil. Stock Exchange Centre Exchange Road, Ortigas Center Pasig, Metro Manila Attention: Disclosure Department Listing and Disclosure Groups Gentlemen : Please be advised that at the Executive Committee Meeting of HOUSE OF INVESTMENTS, INC. (HI) held this afternoon, the Committee approved the purchase by HI of the entire shareholdings of Bank of America International Financial Corporation in BA Savings Bank, subject to the approval by Bangko Sentral ng Pilipinas. Enclosed is a copy of the prepared press release on the matter. Very truly yours, (SGD.) ROSULA P. LAWENKO Asst . Corporate Secretary YUCHENGCO GROUP PURCHASES BANKAMERICA'S SHARES IN BA SAVINGS BANK Manila, June 16, 1998 The Yuchengco Group, through House of Investments, Inc. (III), announced today that it will purchase the shares of BA Savings Bank (BASB) now held by BankAmerica Corporation, increasing its ownership to almost 100%. This purchase transaction is part of the continuing expansion of the integrated financial services business of the Yuchengco Group which includes Rizal Commercial Banking Corporation (RCBC), HI. Malayan Insurance and Great Pacific Life. A previous move is the acquisition of Capitol Development Bank by RCBC. Subject to approval by the Bangko Sentral ng Pilipinas and due diligence audits, HI will purchase the 39% minority stake in BASB currently held by BankAmerica Corporation. "BA Savings is a well-run consumer bank with an extensive branch network throughout the country. We're pleased with this acquisition which enhances the Yuchengco Group's integrated financial services strategy," said Alfonso S. Yuchengco III, Chairman of BASB and concurrently Vice-Chairman of RCBC and HI. Mr. Yuchengco indicated that after the transaction is finalized, which is scheduled for the end-July 1998, it plans to rename BASB, further expand the business, inject more capital, and provide a full suite of banking products and services to the local market, including real estate financing, middle market lending, credit card and related areas. "BankAmerica will remain active in the Philippines and will continue to provide a broad range of commercial banking, corporate finance, capital markets services, and potentially retail banking through its Manila Branch," said Jim Hulihan, Group Executive Vice-President of BankAmerica. BankAmerica established its presence in the Philippines over 50 years ago, as one of its first international branches. "The Yuchengco Group is purchasing our shareholding in BASB after 30-plus years of fruitful association. It's an amicable parting of the ways between two old friends who will look for other ways to work together in the future," said Mr. Hulihan.