PSE Circular for Brokers No. 178-99

February 1, 1999 PSE CIRCULAR FOR BROKERS NO. 178-99 January 29, 1999 Philippine Stock Exchange, Inc. PSE Center Exchange Road Ortigas Center, Pasig City Attention: Ms . Grace B . de Guia Asst . Manager, Disclosure Department Gentlemen : In connection with your requirement for an immediate notification of any material information concerning a PSE listed company please be informed that in today's meeting, the Board of Directors of Solidbank Corporation has just approved Management's recommendation to increase the bank's loan loss provisions by P728 million to a total of a total of P1.6 billion. Solidbank's total earnings for the year prior to the loan loss provisions recognized in 1998 would have been P911 million but all these provisioning reduced Solidbank's net income in 1998 to P100.8 million. cdpr In making this major move, the Board affirms the importance of recognizing the increase in its non-performing loans (11.6% of its total loan portfolio as of 12/31/98) by setting aside from us 1998 income a significant amount in loan loss provisions which in the collective judgment of Management and the Board the increased level of provisions should be sufficient relative to the Bank's size of non-performing loans (including a conservative valuation of corresponding loan collaterals) and its total loan portfolio. Very truly yours, (SGD.) DEOGRACIA R. VISTAN President & Chief Executive Officer