Effective Date of Merger between BPI and Prudential Bank

January 6, 2006BSP CIRCULAR LETTERTO:All Banks and Non-Bank Financial Intermediaries   SUBJECT:Effective Date of Merger between BPI and Prudential Bank The Securities and Exchange Commission (SEC) approved on 29 December 2005 the Plan of Merger and Articles of Merger executed on 14 November 2005, by and between the BANK OF THE PHILIPPINE ISLANDS (BPI — Surviving Corporation) and PRUDENTIAL BANK (Prudential — Absorbed Corporation), whereby the entire assets and liabilities of Prudential will be transferred to and absorbed by BPI. The merger took effect on 29 December 2005.For your information and guidance. (SGD.) NESTOR A. ESPENILLA, JR.Deputy Governor