RELEASE OF GOVERNMENT FROM THE RESTRICTION ON SELLING NON-VOTING SHARES

On 26 Jun 99, DBS Bank announced its intention to approach its shareholders to authorise the Board of Directors to release the Government of the Republic of Singapore (the "Government") from its undertaking relating to the moratorium on the sale of the Non-Voting Convertible Preference Shares of S$1 each in the capital of DBS Bank ("Non-Voting Shares") issued to it.

The proposed release of the selling restriction on the Non-Voting Shares requires the approval of the Bank’s Ordinary Shareholders by way of ordinary resolution (the "Resolution") at an extraordinary general meeting ("EGM") to be convened on 28 Jul 99. Details of the proposal were included in a circular dated 3 Jul 99 despatched to Ordinary Shareholders, entitled "Proposed reorganisation of the share capital of The Development Bank of Singapore Ltd involving a special bonus issue of new ordinary shares for the purpose of removing restrictions on foreign ownership of its ordinary shares pursuant to a Scheme of Arrangement under Section 210 of the Companies Act, Chapter 50."

DBS Bank has also announced its intention of merging its local and foreign ordinary shares (the "Share Merger") and to restructure itself as a wholly-owned subsidiary of a financial services holding company (the "Restructuring"). Shareholders’ meetings to approve the share merger and the restructuring will be held on 28 Jul 99. Details of the Share Merger and Restructuring have been set out in separate circulars to shareholders dated 3 Jul 99.

DBS Bank wishes to announce that, subject to the Resolution, the Share Merger and the Restructuring being approved by shareholders on 28 Jul 99, it is the intention of the Board of Directors to exercise their discretion to lift the selling restriction on the Non-Voting Shares shortly after the EGM.