Additional Sanctions for Non-Compliance with the Continuing Listing Requirements

October 29, 1997 PSE LISTING CIRCULAR NO. 193-97 SUBJECT : Additional Sanctions for Non-Compliance with the Continuing Listing Requirements EXECUTIVE SUMMARY The following is the procedure and the corresponding sanctions for non-compliance with the Continuing Listing Requirements, as provided in the Rules of the Exchange, approved and adopted by the Board of Governors: Compliance with the Required Minimum Number of Stockholders and/or Minimum Number of Ownership Reserved for the Public 1. In the event that a listed company fails to comply with the continuing listing requirements of maintaining a minimum number of stockholders and/or minimum number of ownership reserved for the public as provided in the rules, the Exchange shall inform the listed company thereof. The notice shall contain a directive to the concerned listed company to comply with the requirements of the rules within thirty (30) calendar days from receipt of such notice. 2. Should the concerned listed company continue to fail to comply with the aforementioned requirements after the lapse of the thirty (30)-day period, the Exchange shall impose a penalty of Ten Thousand Pesos (P10,000.00) for each day of non-compliance, commencing on the first day after the lapse of the initial thirty (30)-day period. Simultaneous with the imposition of the aforesaid penalty, the member-brokers shall be notified by the Exchange, through a circular, of the fact of non-compliance of the concerned listed company with a warning that should the latter still fail to comply with the aforementioned requirement(s) within another period of thirty (30) calendar days from dissemination of said notice, the trading of its shares will be automatically suspended. 3. Upon the expiration of the additional thirty (30) calendar days as mentioned in the preceding paragraph and the concerned listed company continues to fail to comply with the continuing listing requirement(s), the trading of its shares shall be suspended for a period of sixty (60) calendar days. The Ten Thousand Pesos (P10,000.00) penalty shall not apply during the sixty (60) day suspension period. 4. After the lapse of the sixty (60) day period of suspension, the Exchange shall initiate delisting procedures. The foregoing rules and policies shall be supplemental to the Manual of Rules Governing the Listing of Securities (Listing Rules) approved by the Board of Governors. Any rule or policy which is inconsistent herewith is hereby deemed repealed or modified accordingly. The foregoing rules of the Exchange shall be effective immediately upon publication thereof. (SGD.) JOSE LUIS U. YULO, JR. President & CEO