DBS Exercises Call Option To Acquire Remaining Shares In DBS Diamond Holdings Limited

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DBS now owns 100% of Dao Heng Bank Group Limited

SINGAPORE, January 10, 2003 - DBS Group Holdings Ltd ("DBS Group") today announced that its principal subsidiary, The Development Bank of Singapore Ltd ("DBS Bank"), has exercised its call option to acquire the remaining 706,318,084 shares in DBS Diamond Holdings Limited ("DDH"). This represents approximately 28.4% of the remaining issued share capital of DDH that it does not already own. Each outstanding DDH share was acquired at the call option price of HK$21.70 per share in cash.

The exercise of the call option completes the offer to acquire Dao Heng Bank Group Limited ("Dao Heng") that was initiated on April 11, 2001. DBS Bank now owns 100% of DDH, which in turn holds 100% of Dao Heng.

DBS Group confirmed that, giving effect to the acquisition of the DDH shares, its Tier 1 and total pro-forma BIS capital adequacy ratios based on the September 30, 2002 financial results would be 10.2% and 15.7% respectively, levels that are in excess of regulatory capital requirements.

DBS Bank has largely completed the operational integration of its two Hong Kong subsidiaries, Dao Heng and 100% owned DBS Kwong On Bank. It has embarked on the process to legally merge its Hong Kong banking entities.