PSE Circular for Brokers No. 496-00

February 29, 2000 PSE CIRCULAR FOR BROKERS NO. 496-00 Bankard income jumps 23% in 1999 Credit card industry leader Bankard Inc. posted 23% growth in audited net income for fiscal 1999 to 115.6 million pesos compared with 93.7 million pesos in the previous year. Total billings rose 5% to 5.15 billion pesos from 4.9 billion a year earlier, said president and chief executive Rogelio S. Chua. Bankard, with 25 years of pioneering and innovative products and services and the widest range of products in the market, had 302,856 cards outstanding at the end of the year. a gain of 10% from 275,189. During the first half of 2000, the firm expects net income to grow significantly over same period in 1999. Officials attribute this jump to increased consumer spending and the continuing reduction of non-performing loans, cuts in operating costs and strong brand equity in the market. Bankard Inc. was listed on the Philippine Stock Exchange in March 1995, and has been an active counter since. It was the first credit card company listed in the Philippines, and only the second in the Asia-Pacific region. In 1995, the firm joined the ranks of the country's top 500 corporation compiled by Business World at No. 489 on the basis of annual gross revenue. Chua said the company will continue to introduce more advance-technology products, including complete conversion of its local card to the multi-function smart card known as Bankard MF1, and progressive enhancement of its Bankard One and Bankard E-Cash programs. Bankard One, Bankard MF1 and Bankard E-Cash will be aggressively supported by loyalty rewards under the Smart Money Program. The last uses the electronic cash card. Bankard MF1 is the first in the country to combine the convenience of a credit card with that of an electronic stored-value cash card. Long a byword for innovation, Bankard operates one of the largest merchant networks. with 25,649 accredited establishments. The pioneering Bankard Airmiles in-house air mileage program lets cardholders travel for free or at huge discounts to a number of choice destinations around the world, while Bankard travel services provides cardmembers their own in-house consultant. Bankard E-Cash is the country's first reloadable electronic cash card. allowing purchases at a growing number of retail outlets including convenience stores, gas stations and fast food shops. Bankard Service quality is expected to improve in quantum leaps with the full migration of its backroom to SEMA Group of Hong Kong. an integrated backroom-solution service provider worldwide, and with the use of Fair Issac, an international developer of advanced credit-scoring technology. Pioneering began in 1995 with Bankard One, the world's first installment smart card needing neither signature, card verification nor charge slip, and providing repayment terms of up to 30 months. LibLex Away from the commercial sphere, Bankard seeks to return value to the community that supports it so consistently. Its Bankard TicketCharge service aims to promote development of the performing arts, making it easy to buy tickets by phone for ballet, opera and theater productions in Manila, New York and London. CHARGE is a program to provide education for street children, while the magazine AHEAD is a platform for discussion of ideas for national growth. Bankard's continuing success, in Chua's view, during the next 5 years will arise from a dedicated philosophy focus on the customer's needs and the achievement of its vision to bring service quality to accepted world standards.