DBS INDONESIA COMMITTED TO INDONESIA MARKET; EXPANSION PLANS INTACT

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REGRETS LOSING PRIMARY DEALER LICENCE

JAKARTA, SINGAPORE, 3 September 2007 - PT Bank DBS Indonesia (DBSI) said today it regretted the loss of its primary dealer licence, but stressed that this has no impact on banking operations, which remain strong and in expansion mode.

"We are very disappointed that DBSI's primary dealer licence was revoked. While the impact on earnings is not material, we regard the loss as a matter of utmost concern," said Scott Armstrong, President Director of DBS Indonesia.

He added that the loss does not reflect any underlying weakness in DBSI's banking operations, and its banking licence remains intact. "As an Asia banking specialist, we are fully committed to growing businesses in Indonesia to better serve customers."

Since the start of this year, DBSI has opened 5 new branches, extending its footprint to 13 branches and sub-branches in 7 cities: Jakarta, Bandung, Semarang, Surabaya, Medan, Pekanbaru and Makassar. Further expansion plans remain on track.

DBSI was one of 15 banks and four securities companies granted a primary dealership licence earlier this year. This allowed it to participate in the Ministry of Finance's bond auctions.

On 29 August 2007, however, the Ministry withdrew DBSI's primary dealership, citing the bank's inability to fulfil licensing requirements in spite of three reminder letters in the past year.

DBSI said today that it had initiated necessary actions to meet its obligations as a primary dealer. Unfortunately, its licence was revoked before these rectification measures were fully in place.

"We will undertake rectification as necessary and continue our discussions with MOF. We are confident of demonstrating that we are fully committed to the Indonesian market. Over time, we believe that DBSI will be re-instated as a primary dealer," said Mr Armstrong.