P0.80 Cash Dividend on Outstanding BPI Common Shares

December 22, 1999 PSE CIRCULAR FOR BROKERS NO. 3260-99 21 December 1999 Philippine Stock Exchange, Inc. PSE Center, Exchange Road Ortigas Center, Pasig City, MM. Attention: Ms . Isabel T . Garcia Listings and Disclosure Group RE : P0 . 80 Cash Dividend on Outstanding BPI Common Shares Dear Sirs: Further to our letter of 17 November 1999 on above subject, we wish to inform you of our receipt today, 21 December 1999, of BSP's letter dated 16 December 1999 approving subject cash dividend on the outstanding Common shares of the capital stock of the Bank of the Philippine Islands. In accordance without Board's resolution, the said cash dividend is payable to BPI Common shares stockholders of record as of 06 January 2000 (the 10th working day from BPI's receipt of said BSP approval) and distributable to the said Stockholders on 21 January 2000 (the 15th day from the said record date of 06 January 2000). Attached for your files, is a photocopy of the above-mentioned BSP letter dated 16 December 1999. Thank you. Very truly yours, (SGD.) CARLOS B. AQUINO VP & Corporate Secretary December 16, 1999 Mr. Xavier P. Loinaz President BANK OF THE PHILIPPINE ISLANDS BPI Building, Ayala Avenue corner Paseo de Roxas Makati City 0720 Dear Mr. Loinaz: This refers to Bank's letter dated November 18, 1999 and December 2, 1999 relative to the declaration by the Board of Directors of the Bank of the Philippine Islands (BPI) on November 17, 1999 of cash dividends in the amount of P648.525 million payable to common stockholders of record as of the 10th working day from receipt of the Bangko Sentral ng Pilipinas (BSP) approval. We interpose no objection to the dividend declaration provided the following conditions are met: 1. The Bank shall comply with the requirements on legal reserves/liquidity cover under BSP Circular No. 1354 dated September 11, 1992, as amended by BSP Circular No. 18 dated March 23, 1994, as follows: LexLib a. The Bank shall have sufficient (i) legal reserves for deposits and deposit substitutes; (ii) liquidity cover for government funds; and (iii) cover for its foreign currency deposits as of the time it seeks BSP approval of the declaration of dividends up to the payment date of the dividend; cdll b. The Bank shall not have incurred (i) net weekly deficiency in its required legal reserves for deposits and deposit substitutes; (ii) any deficiency in its liquidity floor for government funds; and (iii) any deficiency in the cover for foreign currency liabilities of its foreign currency deposit unit (FCDU) during the last two (2) months immediately preceding the date of request for approval of declaration of dividends up to dividend payment date; and llcd 2. The record date for such dividends shall not be sent earlier than thirty (30) days after declaration, as provided under BSP Circular No. 18 dated March 23, 1994. llcd Very truly yours, (SGD.) MA. CORAZON J. GUERRERO Officer-in-Charge