(This is a statement DBS Thai Danu Bank has made to The Stock Exchange of Thailand.)

Subject: Clarification on Press Reports

DBS Thai Danu Bank (DTDB) notes press reports regarding a possible merger involving DTDB, Thai Military Bank (TM) and Industrial Finance Corporation of Thailand (IFCT).

DTDB confirms that it is currently in discussion with TMB regarding a possible merger between DTDB and TMB. Discussions are progressing well but have not yet reached a stage where the parties can make an announcement.

DTDB has not commenced discussions with IFCT regarding a three-way merger involving DTDB, TMB and IFCT. DTDB will evaluate the possibility of such a merger as it would any opportunity to enhance shareholder value.