PBCom, Asian Bank End Merger Discussions

September 3, 1999 PSE CIRCULAR FOR BROKERS NO. 2218-99 Joint Press Statement September 3, 1999 PBCom, Asian Bank End Merger Discussions Philippine Bank of Communications (PBCom) and AsianBank Corp. announced today that they had reached mutual agreement not to pursue their merger. Both banks' decision was influenced by the belief of their respective major shareholders that their interests would be better served by remaining independent and keeping their options open, further stressing that the decision was not based on any adverse findings on either bank. Both banks also outlined their respective alternative courses of action. In the case of PBCom, it submitted to the Bangko Sentral ng Pilipinas a request for the amendment of its universal bank license to that of a commercial bank. This will allow PBCom to focus on using their existing resources towards growing into a stronger and more competitive banking institution. PBCom also remains open to the possibility of a strategic alliance with another partner. On the other hand, Asianbank has engaged Morgan Stanley Dean Witter to assist in the selection of an appropriate strategic investor With the termination of the PBCOM discussions, AsianBank will now entertain expressions of interest from other financial institutions to acquire strategic equity stakes in the Bank. AsianBank also expressed willingness to consider proposals from financial investors who may want only a passive interest in the Bank. llcd AsianBank and PBCom said the termination of their merger discussions would allow them to pursue a wider range of options brought about by the move towards greater consolidation in the banking industry. In this regard, both banks said that they are now willing to consider investment proposals that will result in a change in their banks' .respective controlling interests provided that the interests of their depositors, clients, and personnel will be well served.