PSE Circular for Brokers No. 3155-99

December 10, 1999 PSE CIRCULAR FOR BROKERS NO. 3155-99 December 9, 1999 PHILIPPINE STOCK EXCHANGE, INC. 4/F Philippine Stock Exchange Center PSE Center, Exchange Road Ortigas Center, Pasig City Attention: Ms . Grace B . De Guia Assistant Manager Head, Disclosure Dept . Gentlemen: The Board of Directors, in its Meeting held on December 9, 1999, approved the following: (1) The transfer of 14,426,230 shares in The Philippine Banking Corporation to Global Business Bank, Inc. for Php2,200,000,075.00, pursuant to the Plan of Merger of The Philippine Banking Corporation and Global Business Bank, Inc. cdlex (2) The issuance of additional shares to be taken from the unsubscribed portion of the authorized capital stock, subject to pre-emptive rights of stockholders of record as of a date to be fixed by the President after approval of the listing of the shares by the Philippine Stock Exchange, Inc. and/or the Securities and Exchange Commission, under the following terms and conditions: cdll No. of shares to be issued 29,702,745 Price per share Php200.00 Payment Full payment upon subscription. Pre-emptive Rights 1 share for every 9.99999983166 shares held. Waived Shares To be offered to stockholders who have subscribed in proportion to their new subscriptions and the excess, if any, to be subscribed by an underwriter. Period to Subscribe 10 days from receipt of notice but not later than a day as may be fixed by the President, otherwise, the stockholder is deemed to have waived his/its rights. Cash Dividends Any cash dividends due to the stockholders on existing and new shares shall first be applied in payment of subscription due and unpaid to the Bank, if any. Very truly yours, (SGD.) ANTONIO V. VIRAY Senior 1st Vice President Asst. Corporate Secretary