PSE Circular for Brokers No. 2618-99

October 14, 1999 PSE CIRCULAR FOR BROKERS NO. 2618-99 PRESS RELEASE MPC SIGNS SUBSCRIPTION AGREEMENT FOR PDCP BANK'S PHP1BN CONVERTIBLE PREFERRED SHARES Metro Pacific Corporation (MPC) announced today that it has signed a subscription agreement for 1 billion "Series B" Convertible Redeemable Preferred Shares of its 33 per cent affiliate PDCP Development Bank worth Pesos 1 billion. The new equity comes in by way of a deposit for future subscription pending stockholders approval of the transaction. This subscription follows the recent approval by PDCP Development Bank's Board of Directors of management's proposal for a capital increase, aimed at expanding the Bank's balance sheet and reinforcing its foothold in retail banking. cdll The Bank's Board of Directors will seek stockholder approval for the share issuance in a special stockholders' meeting to be held on 17 November 1999. Thereafter, the Bank will arrange to offer the preferred shares to existing shareholders in proportion to their respective shareholdings under the same terms of the subscription by MPC. The conversion price for the preferred will be based on a 10 per cent premium to the 10-day average market price of PDCP Development's Bank's common shares prior to the stockholders' meeting. The preferred shares will also carry a coupon rate of 9 per cent per annum, and are redeemable for five years.