DBS and Valuair to launch new co-brand credit card and regional processing of online ticket payments

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Singapore's first budget airline to launch in 2Q 2004

SINGAPORE, OCTOBER 13, 2003 - DBS Bank Ltd and Valuair Ltd signed a Memorandum of Understanding (MOU) today for a co-branded credit card and a regional payment solutions for online purchases of tickets on Singapore's first budget airline.

Jackson Tai, vice chairman and chief executive officer, DBS Bank and Lim Chin Beng, chairman of Valuair, signed the MOU at DBS Building Tower One this afternoon, according to a joint announcement by the two companies.

The MOU is the first in a series of business partnerships to be entered into by Valuair, which plans to launch services in the second quarter of 2004.

Commenting on its partnership with DBS, Mr Lim said: "Valuair aims to offer travellers attractive and competitive airfares with the highest reliability of service. Thus it is very important that customers are able to pay for their air tickets in an easy and accessible manner.

"DBS is a logical partner because it has the widest customer reach and distribution network in our home market of Singapore. We are pleased that DBS is able to provide us with a payment solution for our launch."

Mr Tai added: "DBS is excited to participate in the launching of a brand new, budget airline for Singapore. We are also pleased that Valuair will be able to leverage on DBS' large customer base of more than four million retail customers, 550,000 credit card holders and over half a million Internet banking customers."

Under the MOU, DBS and Valuair will work towards a co-brand arrangement in which DBS will issue credit cards, which are co-branded with Valuair's name and mark.

DBS will also process, clear and authorise all online payments of tickets made through credit cards or direct debits from a traveller's bank account. In addition, DBS will also undertake system modifications of its ATM machines to allow for ticket payments through its island-wide network.

About DBS

Headquartered in Singapore, DBS Bank is one of the largest financial services groups in Asia. The largest bank in Singapore and the fourth biggest banking group in Hong Kong as measured by assets, DBS has dominant positions in consumer banking, treasury and markets, securities brokerage, equity and debt fund raising. Beyond the anchor markets of Singapore and Hong Kong, DBS serves corporate, institutional and retail customers through its operations in Thailand, The Philippines, and Indonesia. In China, the bank has branches and representative offices in Shanghai, Beijing, Shenzhen, Fuzhou and Tianjin. The Bank's credit ratings are among 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.