PSE Circular for Brokers No. 1698-99

July 12, 1999 PSE CIRCULAR FOR BROKERS NO. 1698-99 July 9, 1999 PHILIPPINE STOCK EXCHANGE, INC . 4/F Philippine Stock Exchange Center, PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Grace B . De Guia Assistant Manager Head, Disclosure Dept . Gentlemen : We are pleased to inform you that METROPOLITAN BANK AND TRUST COMPANY, as the single biggest stockholder of the Global Business Bank, has agreed in principle to the merger of Global Business Bank with the Philippine Banking Corporation. Attached is the Joint Announcement by the Presidents/CEOs of the Philippine Banking Corporation and Global Business Bank. Very truly yours, (SGD.) ALFREDO P. JAVELLANA II SVP/Controller Asst . Corporate Secretary 09 July 1999 To : Bangko Sentral ng Pilipinas Securities and Exchange Commission Philippine Stock Exchange JOINT ANNOUNCEMENT The Philippine Banking Corporation (PhilBank) and Global Business Bank (Global Bank) have been directed by their shareholders to immediately start working on the details, the terms and conditions for the merger of the two commercial banks. Mutual due diligence will immediately commence and once all necessary approvals and consents have been obtained, the parties will finalize the articles of merger. Global Bank is a member of the MetroBank Group, the country's largest universal bank. It was established in 1997 under a joint venture agreement with Tokai Bank of Japan. PhilBank on the other hand, is a 64 year old commercial bank listed in the Philippine Stock Exchange and is owned by the Siy Yaps, Chuas and Gaisanos. The shareholders of both institutions believe the merger will create synergies and business complementation. With the on-going consolidation in the local banking sector, the merged bank should gain competitive edge with a stronger combined capital of about Peso 5.5 billion, a larger asset base of Peso 22 billion and a more extensive network of 78 branches all over the Philippines. Once completed, the merged bank will rank in the top 15 in terms of capital and 25 in total assets among the country's banks. The planned merger is also a response to the call of Philippine banking authorities for a stronger banking system through consolidation among smaller banks. The merger shall have the distinct privilege of being the first under the stewardship of the newly installed Governor of the Bangko Sentral ng Pilipinas, Mr. Rafael B. Buenaventura. (SGD.) NORBERTO C. NAZARENO (SGD.) ROBIN A. KING President & CEO President & CEO PhilBank Global Business Bank