CHIP ENG SENG CORPORATION LTD

(Incorporated in the Republic of Singapore on 23 October 1998)

Invitation in respect of 125,000,000 ordinary shares of S$0.05 each comprising 90,000,000 New Shares and 35,000,000 Vendor Shares as follows:-

(1) 38,000,000 Offer Shares at S$0.18 each by way of public offer; and

(2) 87,000,000 Placement Shares by way of placement, comprising:-

(i) 12,000,000 Reserved Shares at S$0.18 each reserved for the Directors, employees and business associates of the Group; and

(ii) 75,000,000 Placement Shares at S$0.18 each,

payable in full on application

The Board of Directors of Chip Eng Seng Corporation Ltd ("CES" or the "Company") is pleased to announce that at the close of the Application List at 12:00 noon on 22 November 1999, there were 95,754 applications for the 38,000,000 Offer Shares available to the public for subscription. In total, these applicants applied for 2,931,211,000 Offer Shares, with application moneys received amounting to approximately S$528 million.

Based on the 38,000,000 Offer Shares available to the public for subscription, the offer to the public is approximately 77.1 times subscribed.

To ensure a reasonable spread of shareholders of the Company, the Board of Directors of the Company has decided on the following basis of allotment:-

Of the 75,000,000 Placement Shares, 74,800,000 Placement Shares have been successfully subscribed for. Accordingly, the balance of 200,000 Placement Shares resulting from invalid applications were included as Offer Shares for subscription by the public. The spread of placees is as follows:

The 12,000,000 Reserved Shares have also been fully taken up by the Directors, employees and business associates of the Group and those who have contributed to the success of the Group. The spread of Reserved Shares applicants is as follows:

The Shares will commence trading on a "ready" basis on 24 November 1999. There will be NO trading on a "when issued" basis.

The return of unsuccessful applications using printed Application Forms by ordinary post at the risk of the unsuccessful applicants, together with the full amount of the application moneys (without interest or any share of revenue earned or other benefit arising therefrom), will commence today and is expected to be completed by 26 November 1999. For unsuccessful Electronic Applications, it is expected that the full amount of the application moneys (without interest or any share of revenue or other benefit arising therefrom) will be credited to the applicants' accounts with their Participating Banks (as defined in the Prospectus dated 9 November 1999) within three market days after the close of the Application List on 22 November 1999.

In respect of partially successful applications, the balance of the application moneys is expected to be refunded (without any interest or any share of revenue earned or other benefit arising therefrom) to the applicants, by ordinary post at their own risk (in the case of applications made using printed Application Forms) or through the crediting of the relevant amount to the applicants' accounts with their Participating Banks (in the case of Electronic Applications), within 14 days after the close of the Application List on 22 November 1999.

The Board of Directors of CES is pleased to advise that CPF members may, with effect from 24 November 1999, use their CPF savings (subject to the 20 per cent. sub-limit), to purchase the Company's Shares under and subject to the requirements of the CPF Investment Scheme.

The Company wishes to thank the public, who have applied for the Offer Shares and the Placement Shares, the relevant authorities and all who have helped in one way or another in the Company's initial public offering, for their support and assistance.

Issued by
The Development Bank of Singapore Ltd

For and on behalf of
Chip Eng Seng Corporation Ltd