PSE Circular for Brokers No. 1433-99

June 18, 1999 PSE CIRCULAR FOR BROKERS NO. 1433-99 June 16, 1999 Philippine Stock Exchange Disclosure Department PSE Center, Ortigas Avenue Pasig City Attention: Ms . Grace B . De Guia Assistant Manager Gentlemen : On June 15, 1999, Equitable Banking Corporation (EBC) disclosed to your office the Plan of Merger between EBC and Philippine Commercial International Bank (PCIB), as recommended by the Management of EBC and approved by the EBC Board of Directors. The Plan of Merger provides, among others, that the Exchange Ratio to be applied in the Merger is 2,879 EBC common shares for every one PCIB share. The proposed Exchange Ratio is based on the comparative market values in May 1999 of PCIB common shares and EBC common shares more particularly, based on the ratio of (i.) the actual acquisition cost of Php 290,075 per PCIB common shares to (ii.) the average closing price of the PSE for EBC's common shares for the period starting May 12, 1999 (i.e., the date of signing of the agreement with respect to the purchase) up to May 25, 1999 (i.e. the date of closing of the agreement with respect to the Purchase). prLL The PCIB Board of Directors, in its meeting on June 16, 1999, also approved the same Plan of Merger, but set the Exchange Ratio to be within the range of 2.8 to 3 EBC common shares to 1 PCIB common share. The final Exchange Ratio shall be determined by the respective boards of directors of EBC and PCIB, after consultation with an independent third party. EBC and PCIB expect to finalize the Exchange Ratio before the stockholders' meeting of EBC and PCIB, scheduled on July 20 and 21, 1999 respectively. For your information, please. Very truly yours, (SGD.) ROMUALDO U. DY TANG Senior Vice President