PSE Circular for Brokers No. 2765-99

October 28, 1999 PSE CIRCULAR FOR BROKERS NO. 2765-99 Bankard, Inc. Press Release October 27, 1999 Bankard 3Q net income up 45% as it celebrates its 25 years As Bankard celebrates its 25 years, the company reports an unprecedented growth in net income as of end of third quarter of 1999. Its net income of P63.6 million represents an effective increase of 45% over last year's figure of P43.8 million for the same period. Bankard continues to exhibit impressive development in corporate earnings over the last few years. In 1997, Bankard posted a net annual income of P81 million, while for the year 1998, it generated P93.7 million. This year's third quarter unparalleled growth was largely brought about by the continuing reduction of the company's non-performing loans (NPLs), reduction in funding costs, and strong brand equity in the market. Bankard; Inc. was publicly listed on the Philippine Stock Exchange in March 1995, and has been actively traded since then. It is the first credit card company to be listed in the Philippines, and remains to be the only publicly listed credit card company in the Asia-Pacific region. For the remainder of 1999, Bankard sees the full migration of its card system to SEMA Group of Hong Kong, an integrated-backroom-solutions provider for card companies worldwide. With this new upgraded system, together with the completion of an advanced credit-scoring technology developed by Fair Isaac, Bankard expects its service quality to take a quantum leap in the coming millennium. prcd Also scheduled this November 3 to December 31 is Bankard's MegaFair, an appliance and furniture installment fair for Bankard One cardholders to be held simultaneously in two major malls in Metro Manila and selected participating stores in Cebu, Davao, Dagupan, Laguna and Cavite. Bankard's MegaFair offers Bankard One cardholders with big reductions on installment financing rates, Buy Now, Pay 60 Days Later scheme, and free premium items for early customers. This year's Bankard MegaFair in the malls will start with the appliance and furniture sale to be held at Festival Supermall in Alabang from November 3-16. Meanwhile, the furniture sale, organized by the Philippine Chamber of Furniture, Inc. in cooperation with Bankard, will be held from November 19-28 at Megatrade Halls of SM Megamall. For new initiatives in the new millennium, Bankard will continue to pursue advanced-technology card products via chip technology and e-commerce. Bankard One, Bankard MF1 and Bankard E-Cash will be aggressively supported by loyalty rewards under the Bankard Smart Money Program. Applications in telecommunications and mass transit systems are also being studied. Through the years, the Bankard brand has remained unique due to its unmatched track record of leadership in product innovation. As a pacesetter, it has compiled many "firsts" over its competitors. Among these are: Bankard Airmiles, Bankard Smart Money Program, Bankard One, Bankard E-Cash, Bankard, MF1, Bankard WorldAccess, Bankard TicketCharge, Bankard Travel Services, Bankard Publications, and Bankard Online.