Pasig City, Metro Manila

August 16, 1999 PSE CIRCULAR FOR BROKERS NO. 2028-99 August 13, 1999 PHILIPPINE STOCK EXCHANGE PSE Center, Exchange Road Ortigas Center Pasig City, Metro Manila Attention: Ms . Grace de Guia Listing and Disclosure Gentlemen : We are pleased to announce that, at approximately 12:10 p.m. today, 13 August 1999, the following shares of common stock of the Philippine Banking Corporation ("Philbank") were sold through a special block sale at the Philippine Stock Exchange in favor of the following buyers: Type of Shares No. of Shares Price Per Share Aggregate Buyer Selling Price Philbank Common 17,235.679 P152.50 P2,628.441,047.50 Metrobank 2,010,370 152.50 306,581,425.00 FMIC TOTAL 19,246,049 P3,079,370,472.50 The total number of common shares of Philbank purchased by Metropolitan Bank and Trust Company ("Metrobank") and First Metro Investment Corporation ("FMIC") constitutes 60% and 7%, respectively, of the total outstanding capital stock of Philbank. Thus, a change in control has occurred in Philbank. aisadc The cross sales and change of control were executed pursuant to the Escrow Agreement among Metrobank, FMIC Siy Yap Chua, and Citibank, N.A. (Philippine Branch) dated 26 July 1999 (the "Escrow Agreement"). We are making this disclosure in compliance with the Continuing Listing Requirements of the Philippine Stock Exchange. Very truly yours, (SGD.) ANTONIO V. VIRAY Assistant Corporate Secretary Metropolitan Bank and Trust Company (SGD.) RENATO J. FERNANDEZ Corporate Secretary Philippine Banking Corporation