Merger of Network Rural Bank, Inc and Rural Bank of Monkayo (Davao del Norte), Inc.

CIRCULAR LETTER Series of 2002

TO      :   All Banks and Non-Bank Financial Institutions with Quasi-Banking Functions

The Securities and Exchange Commission (SEC) approved on December 7, 2001 the Plan and Articles of merger executed on August 23, 2000 and December 18, 2000, respectively, and the Amended Articles and Amended Plan of Merger executed on July 25, 2001 by and between the Network Rural Bank, Inc. (Surviving Corporation) and the Rural Bank of Monkayo (Davao del Norte), Inc. (Absorbed Corporation), whereby the entire assets and liabilities of the Rural Bank of Monkayo (Davao del Norte), Inc. will be transferred to and absorbed by the Network Rural Bank, Inc.

The merger took effect on December 7, 2001.

For information and guidance.

ALBERTO V. REYES Deputy Governor