DBS PREFERRED INVESTMENT ISSUE OFFERING INCREASES TO S$900 MILLION

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Issue receives enthusiastic response from retail and institutional investors

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HIGH CREDIT RATING AND 6% DIVIDEND YIELD MAKES ISSUE AN ATTRACTIVE LONG-TERM INVESTMENT

SINGAPORE, MAY 16 - DBS Bank said today it will increase the offering for the DBS Preferred Investment Issue from S$700 million to S$900 million, as the issue is receiving an enthusiastic response from both retail and institutional investors.

The retail tranche, offered through the bank's ATMs, is being increased from S$100 million to S$125 million, and will be available to retail investors until May 24, 2001. The institutional placement tranche is being increased from S$600 million to S$775 million. The bank can close the offering before May 24, 2001 if the issue is fully subscribed.

Institutional and retail investors have cited the issue's high credit rating of aa3 from Moody's and attractive 6% gross dividend as the main factors driving strong demand. DBS Bank is the first financial institution in Singapore to make available Tier 1 preference shares to the retail investor.

Stephen Finch, Managing Director of DBS' Debt Capital Markets said that the response from retail investors has been excellent, with more than S$100 million invested through the bank's ATMs since Monday.

"The affordable minimum investment of S$1,000 and the opportunity to invest in an offering normally available only to international investors are among the main reasons why retail demand for the DBS Preferred Investment Issue has been strong," he said.

DBS Preferred Investment Issues are perpetual securities, redeemable after ten years at the option of DBS Bank, and at every dividend date thereafter, subject to certain redemption conditions. The issue will yield investors a fixed non-cumulative gross dividend of 6% for the first ten years and a floating rate thereafter.

They are issued by DBS Bank and are considered to be core Tier 1 capital under the Monetary Authority of Singapore and Bank of International Settlement's guidelines. They will be listed on the Singapore Exchange Securities Trading Limited and can be traded on the secondary market through a broker. Depending on investor demand, DBS could further increase the offering amount.

Retail investors can purchase the DBS Preferred Investment Issue only at DBS/POSB branches and ATMs, DBS Securities and Vickers Ballas Securities. They will be required to have a CDP account and will be able to use their CPF Investment Scheme (Ordinary Account) funds for this issue.

DBS Bank is the flagship bank of DBS Group Holdings in Singapore. It is ranked among the top banks in Asia, and is the 70th largest in the world. A recognised leader in Internet banking and e-commerce, DBS is the market leader in Singapore-dollar loans and deposits, as well as equity and debt underwriting. Beyond Singapore, DBS Group serves corporate, institutional and retail customers through subsidiaries in Hong Kong, The Philippines, Indonesia and Thailand, and international banking services through a network of 13 overseas branches and offices.

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This press release is not an offer of securities for sale in the United States. The securities described in this press release will not be or have not been registered under the United States Act of 1933, may not be offered or sold in the United States absent registration or an exemption from registration. Any offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Issuer, which will contain detailed information about the company and management, as well as financial statements. "United States" means the United States of America, its territories and possessions, any State of the United States, and the District of Columbia.

Important: The offer will be made in, or accompanied by, a copy of the Prospectus dated 12 May 2001 (The "Prospectus"), issued by DBS Bank. If you wish to apply for the Preference Shares, you will need to make an application in the manner set out in the Prospectus.