PSE Circular for Brokers No. 1686-99

July 9, 1999 PSE CIRCULAR FOR BROKERS NO. 1686-99 Ms. Luisa W. Buenaventura Supervisor, Disclosure Department Listings and Disclosure Group The Philippine Stock Exchange, Inc. 4th Floor, Philippine Stock Exchange Centre Exchange Road, Ortigas Center Pasig City Dear Ms. Buenaventura : We refer to your request for a written clarification/confirmation dated July 8, 1999 in respect of the news article entitled "PNB's remittances subsidiary to list shares within the year" which appeared in the issue of the Manila Times of the same date. cdlex We are unaware of the identity of the "PNB senior official" quoted in the article. We, nonetheless, would like to inform you that among the details of the Board authority In respect of the spin-off and transfer of the Remittance Processing to PNB Forex, Inc. or its related companies to be organized for this purpose, as reported to you on July 2, 1999, is the authority for such new companies to formulate their own objectives, policies and strategies, form its organizational structure, and do whatever is operationally required to institute the incorporation of the new companies including the possible public listing of such companies. No timetable was set for these activities. Should you have further questions, please let us know. Very truly yours, (SGD.) RODERICK R.C. SALAZAR III Corporate Secretary