PSE Circular for Brokers No. 2089-99

August 23, 1999 PSE CIRCULAR FOR BROKERS NO. 2089-99 August 20, 1999 Philippine Stock Exchange Disclosure Department Exchange Road, Ortigas Center Pasig City Attention: Ms . Grace B . de Guia Asst . Manager Gentlemen : This is to inform you that the Board of Directors of Prudential Bank, in its meeting on August 18, 1999, declared a property dividend to all Prudential Bank holders of common stock of record as of September 22, 1999. Said dividend shall be distributed in a proportion wherein holders owning one (1) common share of Prudential Bank shall be entitled to 11.74 shares of Class A and 11.74 shares of Class B Pilipinas Bank preferred stocks, such dividends to be represented by duly issued stock certificates of Pilipinas Bank for the number of full shares of Class A and/or Class B preferred stock of Pilipinas Bank. LLjur Fractional shares shall be treated as follows: Considering that there will be 570 stockholders who will have fractional shares, the first 285 stockholders entitled to have the highest fractional Class A shares shall be allowed to pay for the difference between one whole share and the par value of the fraction of a share to complete one whole Class A shares; the first 285 stockholders entitled to have the highest fractional Class B shares shall be allowed to pay for the difference between one whole share and the par value of the fraction of a share to complete one whole Class B share; provided that stockholders who are not entitled to avail themselves of the right to purchase Class A and/or Class B fractional shares will be paid an amount equal to the par value of their fractional share. PROPERTY DIVIDEND PROPERTY DIVIDEND 11.74 Class A and 11.74 Class B Pilipinas Bank preferred Shares for every 1 PB common share EX-DATE September 16, 1999 RECORD DATE September 22, 1999 Very truly yours, (SGD.) OCTAVIO D. FULE Corporate Secretary