Equitable Banking Corporation

July 21, 1999 PSE CIRCULAR FOR BROKERS NO. 1807-99 SUBJECT : Equitable Banking Corporation In reply to the Exchange's query regarding a news article published in the July 21, 1999 issue of the Philippine Daily Inquirer which reported that Equitable Banking Corporation ("EBC") plans to raise $500 million this year, $200 million of which would come from private placement overseas by August to refinance a portion of the funds used to acquire Philippine Commercial International Bank ("PCI"), EBC, in a letter to the Exchange, explained that: LibLex " . . .Equitable is considering an initiative to raise capital to refinance its acquisition of PCIBank. Hence, Equitable's stockholders, yesterday, approved the increase in its authorized capital stock from P5 billion to P10 billion and the listing of additional shares at the Philippine Stock Exchange. (Section 1.3, Plan of Merger )." The shares proposed to be issued pursuant to the merger and capital build-up option of Equitable may be distributed through private or public placement, either locally or overseas. We wish to clarify, however, that Management is still studying the appropriate amount of capital to be raised, if at all, and thus, the number of shares to be issued and the distribution of said shares' placement. The proposed capital build-up program remains to be, an option of Equitable. Its details are now the subject of close study and discussion by the Equitable's Management." For your information. (SGD.) JOSE LUIS U. YULO, JR. President and CEO