PSE Circular for Brokers No. 211-99

February 4, 1999 PSE CIRCULAR FOR BROKERS NO. 211-99 February 3, 1999 Ms. Grace B. De Guia Assistant Manager Disclosure Department Philippine Stock Exchange Pasig City Gentlemen : Relative to your inquiry about certain news items which appeared about Equitable Banking Corporation's (EBC) interest in buying other banks, may we place the matter within its correct context. In a forum sponsored by Jardine Fleming for fund managers and analyst regularly held among officers of certain listed companies, we were asked about EBC's performance last year and its immediate plans for 1999. We responded with candor but prudently as we feel we always do in forums of this sort. We were in fact asked several times during that forum whether EBC would be interested in buying and acquiring banks and if we were open to strategic partnerships with other banks (Asian Bank) and we did say we were. In this contract, our replies were truthful answers to general inquiries on whether we are interested in continuing our expansion programs, to which we can only reply in the positive because we are indeed interested in pursuing our expansion plans this year. However, we would like to emphasize that EBC at this point in time, is not engaged in any specific discussion, nor is there any ongoing negotiation with any party, relating to any potential purchase of or strategic partnership with any bank. We also like to point out that there was no intention to make any disclosure to the news media (prior to the PSE) of any of the matters referred to in the news articles. We did not seek the media in said briefing nor were we aware that the inquiries would become the basis of news articles. On the matter of Mindanao Development Bank and Ecology Savings Bank, please be advised that while the acquisition process has substantially progressed since our last report, there is as yet no final pricing structure for these acquisitions. We are in the closing stages of the acquisition and there is no agreement at this point in time on the final terms of the sale. We will inform you of the price and terms as soon as it is finalized. Very truly yours, (SGD.) PURITA M. JEANJAQUEL Vice President &C Corporate Secretary