Urban Bank, Inc.

March 3, 2000 PSE CIRCULAR FOR BROKERS NO. 554-00 SUBJECT : Urban Bank, Inc . This has reference to the news article entitled "Urban Bank, Panbank inch closer to finalizing merger" published in today's issue of the Business World. The article reported that Urban Bank, Inc. ("URB") has finally completed its due diligence on the Tan Yu Group's Panasia Banking, Inc. (Panbank) which it plans to buy. According to Mr. Arsenio M. Bartolome III, Urban Bank Chairman said the commercial bank is set to file its application with the Bangko Sentral next week. In a statement, he said that URB is already through with the due diligence but it will be subject to the approval of the central bank, and that it is going to be a 100% acquisition and merger. In its letter, URB clarified that: " . . . We wish to state that the Board of Directors of the Bank has not approved any acquisition and merger arrangement with any bank for that matter. In the case of Panasia Bank, there has been no final agreement reached yet on any material issue that would be a basis to submit the proposed acquisition and merger arrangement for approval of the Board of Directors of the Bank, nor to the Bangko Sentral ng Pilipinas (BSP), even on an approval-in-principle basis. It may be important to mention that the BSP will still have to come out with the new rules and guidelines that will govern mergers of banks that will have to be implemented this year and it would therefore be prudent for the Bank to await for these new rules and guidelines before it pursues any further negotiations for acquisition of and merger with another bank. . . ." For your information. (SGD.) MARIA ISABEL T. GARCIA OIC, Listings and Disclosure Group