Urban Bank, Inc.

March 27, 1998 PSE CIRCULAR FOR BROKERS NO. 516-98 SUBJECT : Urban Bank, Inc . Urban Bank, Inc. ("URB") confirmed to the Exchange, in a letter dated March 26, 1998, the talks between URB and Bank of East Asia. URB in said letter explained that: prLL ". . . Urban Bank and Bank of East Asia (BEA) agreed in principle to explore the possible investment by BEA in Urban Bank (the Bank) of up to 40% of the Bank's outstanding capital stock. BEA subsequently informed the Bank that the Hong Kong Monetary Authority prefers investments wherein controlling interest is acquired or achieved as soon as possible. In view thereof, BEA requested the Bank for an indication of the time frame within which they could acquire controlling interest of the Bank. However, the Bank signified that its institutional shareholders cannot give up controlling interest at this time. Hence, the agreement in principle was deemed extinguished." The said confirmation was done in view of the article published in the March 25, 1998 issue of the Business World. llcd For your information. (SGD.) MA. ISABEL T. GARCIA Head, Listing and Disclosures Group