DBS Preferred Investment Issue Fully Subscribed At S$1.1 Billion

* * *

High credit rating and attractive dividend main factors behind the strong demand

* * *

Strong Take-Up From Retail Investors With S$150 Million Subscribed

SINGAPORE, MAY 21 - DBS Bank said the DBS Preferred Investment Issue was fully subscribed at S$1.1 billion.* The issue comprised a S$150 million retail tranche offered through the bank's ATMs, and a S$950 million placement tranche offered to institutional and retail investors.

Stephen Finch, Managing Director of DBS' Debt Capital Markets said, "We were glad to note the strong response from retail investors through the ATMs, with S$150 million subscribed since the offer was launched."

DBS Bank is the Lead Manager for the issue, and JP Morgan and Morgan Stanley are the Co-Managers. Goldman Sachs is the Structuring Advisor to the issuer.

The DBS Preferred Investment Issue is expected to close on May 24, 2001, and list on the Singapore Exchange Securities Trading Limited on May 28, 2001 and can be traded on the secondary market through a broker.

The Preferred Investment Issue follows the highly successful US$850 million international issue of subordinated debt notes that were heavily oversubscribed by investors across US, Europe and Asia. The US$ subordinated debt offering will qualify as Upper Tier 2 Capital, while the S$ DBS Preferred Investment Issue will qualify as Tier 1 Capital.

The DBS Preferred Investment Issue 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.

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.

* Subject to valid applications

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.