PSE Circular for Brokers No. 2170-99

August 31, 1999 PSE CIRCULAR FOR BROKERS NO. 2170-99 August 27, 1999 Philippine Stock Exchange Disclosure Department Exchange Road, Ortigas Center Pasig City Attention: Ms . Grace B . de Guia Asst . Manager Gentlemen : This refers to the property dividend declared by Prudential bank on August 18, 1999. Please be informed that due to the inclusion of the stock dividend to be issued to shareholders of record as of August 28, 1999, we would like to make a correction regarding our letter to you of August 20, 1999, on the rate of the property dividend to be distributed to stockholders of Prudential Bank. The correct dividend rate is 8.43 shares of Class A and 3.43 shares of Class B Pilipinas Bank preferred stocks for every 1 share of Prudential Bank common stock, instead of 11.74 shares of Class A and 11.74 shares of Class B Pilipinas Bank preferred stocks for every 1 share of Prudential Bank common stock. Our said letter shall now read as follows: 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 8 . 43 shares of Class A and 8 . 43 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. Fractional shares shall be treated as follows: Considering that there will be 674 stockholders who will have fractional shares, the first 337 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 share; the first 337 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 on amount equal to the par value of their fractional share. PROPERTY DIVIDEND (UPDATE) PROPERTY DIVIDEND 8.43 CLASS A AND 8.43 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