PSE Circular for Brokers No. 2690-99

October 21, 1999 PSE CIRCULAR FOR BROKERS NO. 2690-99 DISCLOSURE DEPARTMENT Listings & Disclosure Group 4/F Philippine Stock Exchange, Inc. Ortigas Center, Pasig City Attention: Ms . Ma. Isabel Garcia Listings & Disclosure Group Gentlemen: This is with reference to your fax message seeking clarification on a Philippine Star news article entitled "BPI-FEBTC merger set". As earlier disclosed to your Office, BPI's Board of Directors has approved Management's proposal to pursue a merger with Far East Bank and Trust Company (FEBTC). An actual merger however would depend on the mutual agreement of the parties to the proposed transaction. The "share swap" you sought to clarify merely means that if and when the merger is approved by both parties, all of the outstanding shares of FEBTC will be surrendered by FEBTC shareholders in exchange for newly issued BPI shares. Yours very truly, (SGD.) GERTIE K. SINIO Vice President