Philippine National Bank

March 10, 1999 PSE CIRCULAR FOR BROKERS NO. 441-99 SUBJECT : Philippine National Bank This is with reference to the news article published in the March 3, 1999 issue of the Manila Times, which reported of Philippine National Bank's ("PNB") foreclosure of the property along Buendia, Makati City which businessman Ramon "RJ" Jacinto purchased for $140 million. PNB, in a letter to the Exchange, explained that: ". . . we hereby confirm the above report that the PNB has in fact foreclosed the mortgage on the subject property along Buendia, Makati City." In addition to the aforementioned transaction, PNB provided the Exchange the following information: 1. Amount of the property acquired P2,800M Percent of the amount of property to total loan portfolio (as of January 31, 1999) 2.3% Percent of the amount of property to total assets (as of January 31, 1999) 1.4% 2. Effects of the transaction on the financial condition of the bank (profit/loss incurred) "Except for foreclosure expenses which have yet to be paid, the foreclosure of the Buendia property will no longer have an effect on the PNB's net income for 1999 since the Bank had already provided valuation reserve for the Jacinto account. LexLib For your information. (SGD.) JOSE LUIS U. YULO, JR. President and CEO