DBS FURTHER INCREASES PREFERRED INVESTMENT ISSUE OFFERING TO S$1.1 BILLION

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Institutional placement tranche fully subscribed at S$950 million

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RETAIL INVESTORS TAKE UP S$125 MILLION SINCE THE OFFER OPENED ON MONDAY

SINGAPORE, MAY 17 - DBS Bank said today it will further increase the offering for the DBS Preferred Investment Issue from S$900 million to S$1.1 billion, following strong demand from retail and institutional investors. DBS Bank will not increase the offering amount any further.

The retail tranche, offered through the bank's ATMs, is being further increased from S$125 million to S$150 million, on the back of subscription by retail investors of $125 million since the offer opened on Monday. DBS Bank will close the ATM offering when the retail tranche of S$150 million is fully subscribed. DBS Bank will announce the close of the offering in due course.

The institutional placement tranche has been increased from S$775 million to S$950 million, and is fully subscribed. Accordingly, DBS Bank will not receive further applications under the placement tranche.

Retail investors can still purchase the DBS Preferred Investment Issue only at DBS/POSB ATMs. They are required to have a CDP account and can use their CPF Investment Scheme (Ordinary Account) funds for this issue.

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.

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.