DBS Internet Banking Achieves Another First In The Region

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New Feature Provides Additional Verification For Key Online Transactions

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Unique Password Via Text Messaging To Protect Fund Transfers

SINGAPORE, MAY 13, 2003 - DBS Bank introduced today DBS iB Message, a new online transaction authorisation service using mobile text messaging technology to send a unique password for its Internet Banking service. This new feature is believed to be the first to be offered in the region for Internet Banking services.

The DBS iB Message sends a randomly-generated password to the customer's designated mobile phone or message pager whenever a new payee is added for Third-Party or Inter-Bank Funds Transfer Application. Customers will receive the unique password instantaneously on their mobile phone or message pager upon application.

The password will provide an added level of verification for the online customer whenever a new payee is added for transfer of funds from his bank account to a third-party account. This password can only be used for a specific funds transfer new payee application and the transaction will "expire" within 24 hours if it is not authenticated with the password.

DBS iB Message is also available to overseas customers^*.

Eddie Khoo, DBS' Managing Director and Head of Distribution, Consumer Banking Group Singapore, said, "In deciding the best platform to fulfil our e-banking customers' wish for greater online security and convenience, DBS took into account the customers' changing lifestyle and habits.

"Today, we believe at least four out of five of our e-banking customers own a mobile phone. Mobile device penetration in Singapore has also shown an exponential jump in the last couple of years. In addition, we have seen the number of our Internet Banking customers increased to almost 450,000 today. DBS iB Message thus provides greater convenience for our customers using the latest technology that is easily available to them. This feature gives them the peace of mind that they have personal control of all their funds transfer transactions made online."

DBS soft-launched the service in December 2002 and more than 7,500 Internet Banking customers have already signed up for the DBS iB Message service. Currently, the password feature is optional for Third-Party or Inter-Bank funds transfer services. However, with effect from July 1, 2003, customers who want to add a new payee for any third party or inter-bank funds transfer will need the password before they can complete the application online.

To enjoy this added security, customers need only apply once for DBS iB Message at any DBS or POSB ATM. All they need is a mobile phone or message pager to receive the notification via SMS or message page. The service will be activated immediately upon application. At the ATM, they just have to select:

• Cash Card & More Services
• PIN / IB Message Service
• Apply / Upd IB Message Service

About DBS Internet Banking

DBS Bank was the first local bank to offer Internet Banking service in August 1997. Despite DBS Internet Banking's short history, there were several innovative "firsts" services introduced for the convenience of our e-banking customers. These include:

• First to offer instant Internet PIN application at the ATM (1999);
• First to offer IPO application on the Internet Banking (2000);
• First to offer online direct debit payment (2000);
• First to offer Foreign Currency Fixed Deposit Placement (2002) ;
• First to offer third-party funds transfer via Internet banking Y2002); and
• First to offer two-factor authentication for third-party funds transfer using mobile text messaging (2003).

DBS Internet Banking currently offers a comprehensive range of services including third-party funds transfer, inter-bank funds transfer, Electronic Payment for Shares, online Initial Public Offering (IPO) application, online direct debit payment, online unit trust application and online foreign currency fixed deposit placement. It was rated 'The Leading Internet Banking Website in Asia Pacific' by the Lafferty Group in 2000 and ranked 'Top in Singapore' by The Business Times in 2001.

^* The unique password is sent via the SMS or message page and can be received in most countries that supports GSM and roaming SMS service as determined by the mobile phone service provider.

About DBS

DBS Bank is the largest bank in Singapore as measured by assets, with dominant positions in consumer banking, treasury and markets, securities brokerage, Singapore dollar loans, deposits, and equity and debt fund raising. With the executive and legislative approval for the merger of its wholly-owned Dao Heng Bank and DBS Kwong On Bank operations in Hong Kong, DBS Bank is now the fourth largest banking group in Hong Kong. Beyond the anchor markets of Singapore and Hong Kong, DBS Bank serves corporate, institutional and retail customers through its operations in Thailand, The Philippines, and Indonesia. The bank's credit ratings are amongst the highest in the Asia-Pacific region. More information about DBS Group Holdings and DBS Bank can be obtained from our website www.dbs.com.