Y2K Contingency Plans

December 15, 1999 PSE MEMO FOR BROKERS NO. 403-99 SUBJECT : Y2K Contingency Plans To ensure the continuous operation of the Trading System, the Exchange has developed contingency plans to address possible problems that may arise during the millennium rollover. In this connection, please be informed that multiple recovery plans have been prepared for each identified possible risk or failure scenario for each major component of the Trading System. Moreover, the power, telecommunications and building utility providers have given the Exchange assurances that their respective systems are also year 2000 ready. In anticipation however of possible systems and/or services failure despite diligent and comprehensive preparations, the Y2K Committee decided on the following contingency plans: In case of telecom failure and the two floors cannot be linked together, the general policy is one-floor trading at Ayala. Tektite brokers will trade via their remote terminals or through their correspondent Brokers at Ayala. In case either the Tektite or Ayala floor is totally non-operational for various reasons, there will be trading on the other remaining floor. Brokers at the non-operating floor will trade using their remote terminals connected to the other floor or through their correspondent brokers. In case the telephone system is down, but the Maktrade system is operational, there will be trading. It is the brokers' responsibility to provide for means by which they can be contacted by their respective clients. In case of a general or widespread telecommunications/power failure and a large number of brokers are unable to operate or to have contact with their clients, then the President and/or the Chairman will decide on the matter of declaring the suspension of trading. For queries, contact Efren C. Siron at telephone nos. 637-8810 (Tektite) or 891-9043 (Ayala). For your information and guidance. (SGD.) JOSE LUIS U. YULO, JR. President & CEO