PSE Circular for Brokers No. 685-98

April 16, 1998 PSE CIRCULAR FOR BROKERS NO. 685-98 April 14, 1998 Philippine Stock Exchange, Inc. PSE Center, Exchange Road Ortigas Center, Pasig City, MM Gentlemen : We wish to inform you that at its regular meeting today, 14 April 1998, the Board of Directors of the Bank of the Philippine Islands (BPI) approved to recommend to the Stockholders of BPI the following: 1. Increase of the present Authorized Capital Stock of BPI (specifically the Common Stock) by P7 Billion or from the current level of P10,600,000,000.00 to P17,600,000,000.00; and 2. Declaration and issuance of 30% stock dividend on the issued and outstanding Common shares of the Authorized Capital Stock of BPI, payable to Common Shares Stockholders of record fifteen (15) working days after the approval by the Securities and Exchange Commission of the increase of the Authorized Capital Stock, said stock dividend to be used to comply with the legal requirement that at least 25% of the increase in authorized capital stock shall be subscribed and fully paid. cdlex 3. Amendment of Article "SEVENTH" of the amended Articles of Incorporation of BPI to effect and reflect the amendment called for in Item 1 above. Thank you. STOCK DIVIDEND STOCK 30% Very truly yours, (SGD.) CARLOS B. AQUINO VP & Corporate Secretary