RAFFLES HOLDINGS LIMITED

(Incorporated in the Republic of Singapore on 26 August 1995)

INVITATION IN RESPECT OF 300,000,000 NEW SHARES COMPRISING:

(I).200,000,000 PLACEMENT SHARES AT S$0.85 EACH BY WAY OF PLACEMENT; AND

(II) 100,000,000 OFFER SHARES COMPRISING:

(A) 29,500,000 RESERVED SHARES AT S$0.85 EACH FOR DIRECTORS, EMPLOYEES, BUSINESS ASSOCIATES AND OTHERS WHO HAVE CONTRIBUTED TO THE SUCCESS OF RAFFLES HOLDINGS LIMITED, ITS SUBSIDIARIES AND ITS ASSOCIATED COMPANIES; AND

(B) 70,500,000 OFFER SHARES AT S$0.85 EACH BY WAY OF PUBLIC OFFER,

PAYABLE IN FULL ON APPLICATION

The Board of Directors of Raffles Holdings Limited ("RHL" or the "Company") is pleased to announce that at the close of the Application List at 8.00 a.m. on 9 December 1999, there were 99,951 applications for the 70,500,000 Offer Shares available to the public for subscription. In total, these applicants applied for 1,000,063,000 Offer Shares, with application moneys received amounting to approximately $850 million.

Based on the 70,500,000 Offer Shares available to the public for subscription, the offer to the public is approximately 14.2 times subscribed.

To ensure a reasonable spread of shareholders of the Company, the Board of Directors of the Company has decided on the following basis of allotment:-

All the 200,000,000 Placement Shares were subscribed for. The spread of placees is as follows:-

The 29,500,000 Reserved Shares were also fully taken up by directors, employees, business associates and others who have contributed to the success of Raffles Holdings Limited, its subsidiaries and its associated companies. The spread of Reserved Shares applicants is as follows:-

The Shares will commence trading on a "ready" basis on 10 December 1999. There will be NO trading on a "when issued" basis.

The return of unsuccessful applications using printed Application Forms by ordinary post at the risk of unsuccessful applicants, together with the full amount of the application moneys (without interest or any share of revenue or other benefit arising therefrom), will commence today and is expected to be completed by 14 December 1999. For unsuccessful Electronic Applications, it is expected that the full amount of the application moneys (without interest or any share of revenue or other benefit arising therefrom) will be credited to the applicants' accounts with their Participating Banks (as defined in the Prospectus dated 1 December 1999) within three market days after the close of the Application List on 9 December 1999.

In respect of partially successful applications, the balance of the application moneys is expected to be refunded (without any interest or any share of revenue or other benefit arising therefrom) to the applicants, by ordinary post at their own risk (in the case of applications made using printed Applications Forms) or through the crediting of the relevant amount to the applicants' accounts with their Participating Bank (in the case of Electronic Applications) within 14 days after the close of the Application List on 9 December 1999.

The Company wishes to thank the public who have applied for Offer Shares and the Placement Shares, the relevant authorities and all who have helped in one way or another in the Company's initial public offering, for their support and assistance.

Issued by
The Development Bank of Singapore Ltd

For and on behalf of
Raffles Holdings Limited