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DBS Bank Successfully Prices S$500,000,000 Subordinated Notes

SINGAPORE, 4 July 2006 - DBS Bank said today it successfully priced an offering of S$500 million subordinated notes due 2021.

The Singapore 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 4.47%. 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 six month S$ swap offer rate plus 1.58%.

Jeanette Wong, Chief Financial Officer of DBS Bank, said: “Following our earlier US$900 million subordinated notes offering on June 9, we continued to receive strong reverse enquiries from investors attracted to DBS as a highly rated Asian bank but who wanted a S$ issue. This S$ subordinated notes offering allows us to tap market demand to supplement our US$ transaction.”.

The subordinated notes were distributed to predominantly Singapore-based institutional investors.

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 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 the securities described therein 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 15 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