BDO SERIES 1 CDs 
(BDO Floating Rate Long-Term Negotiable Certificates of Deposit due 2010)

Please be advised that effective June 1, 2007, the Benchmark Rate to be used in the interest computation of the BDO Series 1 CDs shall be the Philippine Dealing System (PDS) Treasury Fixing or "PDST-F" 3-month benchmark rate as published on the Market Page of the PDEx System at approximately 11:16 a.m. on the relevant determination date instead of the 3-month benchmark rate as displayed on the "MART 1" page of Bloomberg.

This is in compliance with BSP Memorandum M-2007-006 re: Mark-to Market Valuation of Debt and Equity Securities - Benchmark/Reference Prices. PDST-F is intended to support the repricing and mark-to-market of existing debt securities and contracts until their maturity.

The PDST-F 3-month benchmark rate is computed using the original methodology used by the Bankers Association of the Philippines (BAP) and Money Market Association (MART) in the computation of the MART1 3-month benchmark rate.

Philippine Dealing and Exchange Corporation (PDEx) is the exclusive Calculating Agent for Benchmark Computation of Peso Government Bond Prices as appointed and confirmed by the BAP Board.

For any clarification or questions, please call your branch of account or
the BDO Treasury Group at 702-6844 or 702-6845.