PSE Circular for Brokers No. 1885-99

July 29, 1999 PSE CIRCULAR FOR BROKERS NO. 1885-99 FEBTC BARES REORGANIZATION MOVES Far East Bank said it is ready to embark on its reorganization plan following its completion of a strategic review of its operations. "The reorganization involves transforming the Bank into one that will be more responsive to its new strategic directions. Various business groups will be realigned along functional lines to give greater focus on core banking activities", according to FEBTC President and CEO O.V. Espiritu. FEBTC will also enhance its operating infrastructure and create synergies through the integration of work processes and consolidation of branches and service units. Initially, nine of the Bank's branches will be consolidated and some units of its head office will be streamlined based on the Bank's envisioned organizational setup. "This will result in a reduction of some 300 employees whose positions have been determined redundant. As the streamlining of the Bank's various units is completed, total redundancies may reach a high of about 700 employees. As such, Businessworld's report yesterday that this will result to an immediate job cut of 1,000 is inaccurate", Espiritu disclosed. Espiritu also stated that "there is no truth that those being targeted for forced retirement are the oldest and newest employees or those who have rendered more than 20 years and less than five years of service". He further denied the statement that appeared in the same report that "if the desired quota is not met, next in line would be married employees both working with the Bank." dctai He emphasized that the redundancies arising from the consolidation effort are key to determining eligibility for the Bank's special separation program. The program provides a generous separation package based on service tenure. FEBTC aims to achieve best practice in cost management, drive revenue opportunities and position the Bank for greater growth and dominance in the banking industry". Espiritu concluded