HKMA Approves DBS' Purchase of Dao Heng Bank

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DBS Expects to Declare Offer Unconditional Shortly

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Integration Planning Completed and DBS Ready

to Launch a Smooth Integration

HONG KONG AND SINGAPORE, June 28 - DBS Group Holdings Ltd (DBS) said the Hong Kong Monetary Authority (HKMA) has approved its purchase of Dao Heng Bank Group Limited (Dao Heng).

"We are very pleased to have received HKMA approval. Our team has been working very diligently with the HKMA over the past two months to provide the necessary information and documents, and we are delighted that the HKMA has been able to approve our application so efficiently," said Jackson Tai, President & COO of DBS.

"We have been eager to complete our offer for Dao Heng for some time and we are ready. This is a milestone for DBS as the deal will significantly expand our retail presence in Hong Kong. It will make us the fourth largest bank in Hong Kong by assets, the third largest credit card issuer and one of the premier consumer banks in Hong Kong. Dao Heng will also enable us to diversify regionally and fortify our second pillar in Greater China."

"With the acquisition, DBS is the only Asian bank with a significant presence in Singapore and Hong Kong, making us a truly Pan-Asian bank. With the acquisition of Dao Heng and our proposed acquisition of OUB, we will have grown our asset base from less than US$40 billion at the end of 1997 to over US$100 billion today. This will make us the third largest bank in Asia, outside of Japan and Australia," added Tai.

Commenting on the integration of Dao Heng, Tai said: "We have made a lot of progress on Dao Heng and have spent a great deal of time so far coming up with a detailed integration plan; and I am happy to say the results so far are very encouraging. We have completed our integration planning, we have a fully staffed integration team and we have been ready to launch a smooth integration for some time. I am gratified that we can start now."

Tai concluded: "We have no doubt we can integrate Dao Heng quickly, efficiently and seamlessly. We have developed significant in-house integration experience over the last few years and we have some of the most experienced and seasoned management in Asia. Even more, Dao Heng's systems and processes, as well as their management, are very good. I am especially gratified that Randy Sullivan has agreed to stay on as CEO of Dao Heng and will lead the integration effort. Randy has been with Dao Heng for 14 years and his experience will be invaluable."

The Dao Heng Offer

DBS announced its intention on April 11, 2001, to make a voluntary general offer for Dao Heng. Under the offer, Dao Heng shareholders will have the choice of accepting either (i) HK$60.01 per Dao Heng share or (ii) a package of HK$43.13 in cash and one share of its acquisition vehicle -- DBS Diamond Holdings Ltd. ("DDH"). Guoco Group Limited ("Guoco") has agreed to take the cash and share option. If all other shareholders accepted the cash and share offer, DBS would acquire an approximate 71% interest in Dao Heng through DDH. The Dao Heng Offer included a number of pre-conditions, including HKMA approval, as well as approval of the Monetary Authority of Singapore, Guoco shareholder approval and various other conditions. All of DBS' funding and foreign exchange requirements for the purchase have been completed.

DBS said that, with HKMA approval, the pre-conditions to the offer have either been met or waived and it expected to start the offer on June 29. Although the offer will remain open for at least 21 days, DBS will declare the offer unconditional following the tender by Guoco of its approximate 71% stake in Dao Heng. Guoco is expected to tender its shares shortly after the offer opens. Guoco shareholders separately approved the sale at a shareholders' meeting held on June 18, 2001.

For more information regarding the Offer, Dao Heng shareholders should refer to the composite document which, subject to its registration at the Registrar of Companies, is expected to be sent to Dao Heng shareholders and Dao Heng optionholders on June 29, 2001.

About DBS

DBS Bank is the flagship bank of DBS Group Holdings in Singapore. It is ranked among the top banks in Asia and 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. On June 22, DBS announced its intention to make a voluntary conditional takeover offer for Overseas Union Bank Limited, Singapore's fourth largest bank.

About Dao Heng

Dao Heng Bank Group Ltd, a subsidiary of Guoco Group Limited, is one of Hong Kong's leading financial institutions with a network of 71 branches and 80 ATMs or electronic banking centres, supported by a modern call center and Internet service channel as well as its overseas network.

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