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DBS Bank successfully prices benchmark US$900 million floating rate subordinated notes

SINGAPORE, 10 JUNE 2006 - DBS Bank said today it successfully priced an international offering of US$900 million floating-rate subordinated notes due 2021. This is the first floating-rate subordinated note that has a maturity of at least 10 years to be issued by an Asian (ex-Japan) bank.

The US dollar denominated subordinated notes have a 15-year maturity with a call option and coupon step-up after the tenth year.

The subordinated notes are expected to qualify as Upper Tier 2 capital of DBS Bank. The new capital will be used for general corporate purposes, including the replacement of existing Tier 2 subordinated notes which are amortising. The subordinated notes bear a coupon of 61 basis points above the benchmark LIBOR. If the subordinated notes are not called on the tenth year, the coupon will be stepped up on the call date to a floating rate equal to 161 basis points over three-month LIBOR.

Jeanette Wong, Chief Financial Officer of DBS Bank, said: "As a highly rated Asian bank, DBS’ credit standing is clearly a differentiating factor with investors, allowing us to raise capital at terms that met our requirements."

The subordinated notes were distributed to institutional investors, 68% to banks (including structured investment vehicles), 14% to investment advisors and the remainder to the insurance sector, with 21% placed in Asia, 43% placed in Europe and 36% placed in North America.

The subordinated notes have been rated Aa3 by Moody's Investors Service, A by Standard & Poor's Ratings Group and A+ by Fitch Ratings Ltd.

The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy securities in the United States. The proposed offering described herein will not be registered under the U.S. Securities Act of 1933 or with any securities regulatory authority of any state or other jurisdiction in the United States and may not be offered or sold, directly or indirectly, into the United States unless the securities are so registered or an exemption from the registration requirements is available.

About DBS

Headquartered in Singapore, DBS is one of the largest financial services groups in Asia with almost five million customers and operations in 14 markets. The largest bank in Singapore and the fifth largest banking group in Hong Kong as measured by assets, DBS’ "AA-" and "Aa2" credit ratings are among the highest in the Asia-Pacific region. DBS has leading positions in consumer banking, treasury and markets, asset management, 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 China, India, Indonesia, Malaysia, Thailand and The Philippines. More information about DBS Group Holdings and DBS Bank can be obtained from our website www.dbs.com.