DBS Provides Update On Dao Heng Harmonization

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Most Milestones Achieved Ahead of Schedule

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Synergy Targets On Track From Revenue And Cost Reduction Opportunities

SINGAPORE, JANUARY 23, 2002 - DBS Group Holdings ("DBS" or the "Bank") today provided analysts with an update on the progress of the DBS & Dao Heng harmonisation process. DBS officials confirmed that all of its October 2001 ("Day 1") milestones have been achieved. DBS officials also reviewed the December 2001 ("Day 2") milestones, and confirmed that most of the milestones have been completed ahead of schedule.

The synergy targets remain realistic as the Bank continues to find success with both its revenue and cost reduction opportunities. Revenue opportunities are coming from selling new products through Dao Heng. The cost reduction opportunities are a result of harmonising systems, premises and personnel among DBS' operations in Hong Kong, including DBS Asia Capital, DBS Kwong On Bank and DBS Vickers.

DBS officials also announced that the harmonisation process has not distracted management from launching as many as seven new "Business-as-Usual" product and service initiatives since October 2001.

The Bank remains on target for completing the remaining milestones and becoming one bank to its customers and employees by January 2003 ("Day 3").