Monitoring Foreign Ownership

July 2, 1998 PSE MEMO FOR BROKERS NO. 304-98 SUBJECT : Monitoring Foreign Ownership The Board of Governors has adopted the following rules and procedures in the monitoring of foreign ownership limits of companies listed on the Philippine Stock Exchange: Monitoring Foreign Ownership Limits 1. Listed Companies with unclassified shares with foreign ownership limits ( the first type ) shall submit to the Exchange (Attn: The Chief Operating Officer) on a monthly basis not later than the last working day of the first week of every month, the basic information that will enable the Exchange to show the exact number of shares in the hands of foreign shareholders on a real time basis using the prescribed form as attached. Listed companies may mandate their transfer agents to submit directly the aforesaid form to the Exchange. 2. Listed companies whose shares are either already classified into Class A and B shares, or can be owned entirely by foreigners or cannot be owned at all by foreigners ( the second type ) are exempt from this rule. 3. The Exchange trading system shall indicate in its Security Information (F4) the shares still available to foreigners for those companies of the first type. For the second type of companies, the trading system shall instead indicate that it is either " Totally available to foreigners " or " Not available to foreigners ". The trading system shall dynamically and continuously update the number of shares available to foreigners by considering the orders as they are matched by the system. 4. When the remaining number of shares available to foreigner is 5% of the total outstanding shares, the trading system shall indicate in a conspicuous manner a " Yellow Alert ". When the remaining number of shares available to foreigner is 2% of the total outstanding shares, the trading system shall indicate in a conspicuous manner a " Red Alert ". 5. Brokers requests to amend the nationality flag ("F" or "L") after the orders have been matched shall still be allowed provided the foreign ownership limit has not been or will not be breached. 6. The Operations Group shall establish a procedure to be followed by all the concerned parties to ensure that this monitoring system is implemented properly and producing results accurately. 7. Listed companies of the first type who fail to submit the required monthly report of shares in the hands of foreigners shall be penalized P10,000.00 per week until the report is actually submitted . Circular NR 260 of July 18, 1996 requiring listed companies about to breach the limit to submit report to the Listings Group and the follow-up Notice to Brokers No. 165 of August 12, 1997 imposing the penalties on companies who failed to submit the report on, time are hereby repealed and amended respectively. The sanctions on listed companies who failed to submit the required report in the preferred format shall be effective starting the submission of the August reports which are due the first week of September 1998. cdt (SGD.) RAFAEL L. LLAVE Chief Operating Officer DATE PHILIPPINE STOCK EXCHANGE, INC. PSE Center, Exchange Road, Ortigas Complex, Pasig City Attn: The Chief Operating Officer Gentlemen: In compliance with Memo to Broker No. ___, Series of 1998 of the Philippine Stock Exchange, Inc. we report herewith the percentage of foreign ownership level of the following listed companies we handle: __________________________________ NAME OF TRANSFER AGENT __________________________________ AUTHORIZED SIGNATORY (sign over printed name)