DBS And Bank Mandiri Lead US$215 Mln Syndicated Loan To Indonesia's Mitra Global

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Largest Syndicated Facility for an Indonesian Telcom Company since 1998

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DBS Also Advisor On Landmark Acquisition Of Mitra By Alberta Telecom

SINGAPORE, JANUARY 20, 2004 - DBS Bank announced today its syndicated term loan facility for Indonesia-based PT Mitra Global Telekomunikasi Indonesia ("MGTI") was fully subscribed.

DBS Bank and PT Bank Mandiri (Persero) Tbk ("Bank Mandiri") are the joint mandated co-ordinating arrangers for the US$215 million five-year facility, which attracted commitment from six other leading banks at the close of syndication earlier this month. In addition to DBS and Bank Mandiri, other members of the syndicate are ABN AMRO Bank N.V., PT Bank Danamon Indonesia Tbk, PT Bank DBS Indonesia, PT Bank Internasional Indonesia Tbk, ING Bank N.V. and PT Bank Rabobank International Indonesia.

MGTI was one of five foreign-owned joint ventures set up in the mid-1990s to offer telephone services in Indonesia. It has been the partner of state-owned PT Telekomunikasi Indonesia Tbk ("Telkom") in installing fixed lines in Central Java and Yogyakarta under a scheme in which Telkom allows MGTI to operate the regional network of 730,000 fixed lines in return for a 30 per cent share of the revenue for 15 years until 2010.

Telkom had formed similar partnerships in four other regions to offer telephone services all over Indonesia but has since bought out these ventures, except for two, one of which is MGTI.

In September last year, all the MGTI shareholders, including PT Indonesian Satellite Corp Tbk, PT Widya Duta Infotel, Telstra Global Ltd, NTT Finance (UK) Ltd, Itochu Corporation and Sumitomo Corporation, agreed to sell their entire stake to PT Alberta Telecommunication ("Alberta") for a total cash consideration of US$266 million.

Alberta is a subsidiary of PT Saratoga Investama Sedaya, which in turn is controlled by well-known Indonesian business tycoon Edwin Soeryadjaya and a number of financial investors. DBS Bank was financial advisor to Alberta for this landmark acquisition, completed today in Jakarta.

Speaking at the loan signing ceremony at Shangri-La Hotel today, DBS Bank's Managing Director and Co-Head of Investment Banking Group Brent Smith said: "We are delighted to be given the opportunity to advise on, structure and lead arrange the financing for this landmark transaction. The fact that eight leading names in the financial community have committed to this syndicate is testimony to the growing confidence in Indonesia's economy and growth prospects."

Proceeds from the loan will be used by MGTI to refinance its existing debts.

About DBS

Headquartered in Singapore, DBS is one of the largest financial services groups in Asia. The largest bank in Singapore and one of the top five 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.

About MGTI

MGTI is an Indonesian corporation involved in providing fixed line telecommunication services in Indonesia in the territory of Central Java and the Special District of Jogjakarta. These two telecommunication operating areas constitute the Regional Division IV of Indonesia, one of the seven regional divisions structured by geographic area to provide telecommunication services. On October 20, 1995, MGTI entered into the Original KSO Agreement with Telcom under which the two companies formed KSO Unit IV to provide fixed line services. KSO Unit IV controls 100% market share of the Central Java and Special District of Jogjakarta Region, an area of 37,375 square kilometres and has an exchange capacity of 770,289 lines and total installed lines of 734,144.

About Alberta Telecommunication

Alberta Telecommunication is a subsidiary of PT Saratoga Investama Sedaya which is in turn controlled by Edwin Soeryadjaya and a number of financial investors. Alberta was established recently to provide financial services in the telecommunication industry as well as to hold telecommunication investments such as MGTI. It has a capitalisation of about US$32 million in the form of common equity and subordinated debt.