Rules Redefining Sanction for Non-Compliance with the Structured Reportorial Requirement:

March 10, 1999 PSE CIRCULAR FOR BROKERS NO. 447-99 SUBJECT : Rules Redefining Sanction for Non-Compliance with the Structured Reportorial Requirement : Pursuant to the directive of the Securities and Exchange Commission (SEC) contained in its letter of 17 February 1999, we are quoting hereinbelow the approved Rules Redefining Sanctions For Non-Compliance With The Structured Reportorial Requirements for your information and guidance. The rules were adopted by the Exchange's Board of Governors on August 12, 1998 and approved by the SEC in 11 February 1999. The rules are considered currently effective following their publication in The Philippine Daily Inquirer March 7, 1999, and Business World on March 8, 1999. "Annual Report using SEC Form 11-A: (a) In the event that a listed company fails to submit two hundred (200) copies of its Annual Report using SEC Form 11-A within one hundred five (105) calendar days after the end of the fiscal year or any valid extension thereof, the Exchange shall notify and grant the listed company a period of fifteen (15) calendar days within which to comply. b) Should the listed company, after the lapse of the fifteen (15)-day period, still fail to submit the required report, the Exchange shall impose a basic fine in accordance with the New Scale of Fines for Non-compliance with the Reportorial Requirements of the Exchange. The listed company shall be given another period of thirty (30) calendar days within which to submit said report and pay the basic fine. LexLib (c) After the lapse of the said thirty (30)-day period, the Exchange shall commence imposing the daily fine for each day of non-compliance, in accordance with the New Scale of Fines for Non-compliance with the Reportorial Requirements of the Exchange within 'another period of thirty (30) days. The Exchange shall likewise warn the company that no earlier than ten (10) calendar days prior to the lapse of the said thirty (30)-day period, the member-brokers and the investing public shall be notified, through a circular, of the fact of non-compliance with a warning that failure to comply with the requirement of the Exchange shall result in the automatic suspension of the trading of the company's shares for a maximum period of six (6) months. During the six (6) months suspension period, the daily fine shall not be applied. (d) After the lapse of the suspension period and the company still failed to comply with the reportorial requirement, the Exchange shall initiate delisting procedures. (e) Should the company, on the other hand, be. able to submit its Annual Report but fail to pay the basic fine within the period provided, a fine for each day of nonpayment, in accordance with the New Scale of Fines for Non-compliance with the Reportorial Requirements of the Exchange, shall be imposed for a period of thirty (30) days. In addition to the foregoing, the listed company shall be considered delinquent by the Exchange. Thus, any application for additional listing of a delinquent company shall not be processed until it has been cleared of its penalty in arrears. Likewise, any request for issuance of clearance or certificate of good standing shall not be entertained by the Exchange. Should the Company still fail to settle its obligation to pay the basic fine, the trading of the shares of the delinquent company shall be automatically suspended for a maximum period of six (6) months. Upon the expiration of the said six (6)-month period, the Exchange shall initiate delisting procedures. LLpr Quarterly Report Using SEC Form 11-Q : (a) In the event that a listed company fails to submit two hundred (200) copies of its Quarterly Report using SEC Form 11-Q within Forty-five (45) calendar days after the end of the quarter or any valid extension thereof, the Exchange shall notify and grant the listed company a period of fifteen (15) calendar days within which to comply. (b) Should the listed company, after the lapse of the fifteen (15)-day period, still fail to submit the required report, the Exchange shall impose a basic fine in accordance with the New Scale of Fines for Non-compliance with the Reportorial Requirements of the Exchange. The listed company shall be given another period of twenty (20) calendar days within which to submit said report. (c) After the lapse of the said twenty (20)-day period, the Exchange shall commence imposing the daily fine for each day of non-compliance, in accordance with the New Scale of Fines for Non-compliance with the Reportorial Requirements of the Exchange within another period of thirty (30) days. The Exchange shall likewise warn the company that no earlier than seven (7) calendar days prior to the lapse of the said twenty (20)-day period, the member-brokers and the investing public shall be notified, through a circular, of the fact of non-compliance with a warning that failure to comply with the requirement of the Exchange shall result in the automatic suspension of the trading of the company's shares for a maximum period of six (6) months. During the six (6) months suspension period, the daily fine shall not be applied. LLjur (d) After the lapse of the suspension period and the company still failed to comply with the reportorial requirement, the Exchange shall initiate delisting procedures. (e) Should the company, on the other hand, be able to submit its Quarterly Report but fail to pay the basic fine within the period provided, a fine for each day of non-payment, in accordance with the New Scale of Fines for Non-compliance with the Reportorial Requirements of the Exchange, shall be imposed for a period of thirty (30) days. In addition to the foregoing, the listed company shall be considered delinquent by the Exchange. Thus, any application for additional listing of a delinquent company shall not be processed until it has been cleared of its penalty in arrears. Likewise, any request for issuance of clearance or certificate of good standing shall not be entertained by the Exchange. Should the Company still fail to settle its obligation to pay the basic fine, the trading of the shares of the delinquent company shall be automatically suspended for a maximum period of six (6) months. Upon the expiration of the said six (6)-month period, the Exchange shall initiate delisting procedure. Cdphil The foregoing rules and policies shall be supplemental to the Disclosure Rules of the Exchange. Any rule or policy which is inconsistent herewith is hereby deemed repealed or modified accordingly." (SGD.) JOSE LUIS U. YULO, JR. President & CEO