DBS GROUP TO SELL HOLDINGS IN DBS LAND

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Pidemco Land To Pay S$966 Million For 24.9 Percent of DBS Land

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AGREEMENT CONSISTENT WITH DBS PLANS TO DIVEST NON-CORE ASSETS

SINGAPORE, FEB. 21 -- DBSH Group said today it had reached agreement with Pidemco Land to sell 24.9 percent of DBS Land, Singapore's leading property development firm.

Under the agreement, Pidemco Land will pay S$2.98 per share for 324,150,000 DBS Land shares held by DBS Bank Ltd., for a total consideration of S$966 million.

DBS will retain a 5.4 percent interest in DBS Land subsequent to the sale.

The sale of the bulk of its DBS Land stake reflects DBS' strategy of divesting non-core assets. In 1999, DBS securitised and sold its interests in DBS Tampines Centre for gross proceeds of S$180 million, and divested its stake in Singapore Petroleum Company for gross proceeds of S$124 million.

DBS CEO John Olds said the deal was entirely consistent with its goals and strategic plan.

"This is another step in refocusing on our core banking business," he said.

"DBS Land is a very successful company. But we believe we can better deploy the capital and grow shareholder value if we concentrate fully on our goal of building a world-class regional bank," Olds said.

The Audit Committee of DBSH Group has reviewed the sales agreement, and determined the transaction is on normal commercial terms and is not prejudicial to DBSH shareholders.

The sale is subject to regulatory and shareholder approval. DBS Group said it will call an Extraordinary General Meeting (EGM) shortly to seek shareholder approval of the sale.