BW Investigation Report

February 21, 2000 PSE MEMO FOR BROKERS NO. 059-00 SUBJECT : BW Investigation Report Attached is a self-explanatory letter that was sent to senator Raul S. Roco re: the BW Investigation Report that was furnished to the media. For your information. (SGD.)TRINIDAD Y. KALAW Chairperson (SGD.) JOSE LUIS U. YULO, JR. President & CEO February 17, 2000 HON SENATOR RAUL S. ROCO Chairman, Committee on Banks, Financial Institution & Currencies SENATE OF THE PHILIPPINES Rm. 509, GSIS Bldg., Roxas Blvd., Manila Dear Sen. Roco, This is in reference to our cover letter attached to the report of our Surveillance and Compliance Department on its investigation of the unusual trading of BW Resources shares and the subsequent release by your committee of the said report to the media. Without questioning the authority and wise discretion of the honorable chairman, please be advised that the Board of Governors of the Exchange finds great disappointment in the act of going public with the report. cdlex The Board registers its strong protest over the apparent breach of the confidentiality condition we requested upon submission of the said report. We strongly disagree with your Honor that our fiduciary obligation mandates the release of the report to the public which is in outright disregard of the right of individuals and entities named in the report to due process. cdlex We reiterated that our request for strict confidentiality was not an act betraying full public transparency but a democratic step while concerned parties are given opportunity to be heard by our Business Conduct and Ethics Committee. cdlex Rest assured the management and leadership of the Exchange join you in upholding the best interest of market investors and protecting the public welfare. Respectfully yours, (SGD.) TRINIDAD Y. KALAW Chairman (SGD.) JOSE LUIS U.YULO, JR. President/CEO