DBS TO EXPAND IN TAIWAN
THROUGH ACQUISITION OF "GOOD BANK ASSETS" OF BOWA BANK

***

Transaction strengthens DBS' Greater China presence

SINGAPORE, 1 February 2008 - DBS Bank announced today that it is the successful bidder in a government auction to acquire the "good bank assets" of Bowa Bank (Bowa) in Taiwan, thereby giving DBS significant inroads into the fourth-largest economy and banking sector in Asia ex-Japan.

The Taiwan Government's Central Deposit Insurance Corporation ("CDIC") took control of Bowa in August 2007. Under the terms of the transaction, DBS will acquire Bowa's "good bank assets" of approximately NT$66.3 billion (SGD 2.9 billion) of net loans, NT$92.3 billion (SGD 4.1 billion) of deposits, 39 branches, 3 business units and over 750,000 depositors, with a payment from the CDIC. Following the acquisition, DBS will have a total of 43 distribution outlets across Taiwan, of which 20 are in the Taipei area.

The investment reinforces DBS' Greater China strategy, and enhances the bank's position as a leading provider of financial services in Asia and a pioneer in wealth management. The acquisition presents a sizable platform for DBS to grow and extend its footprint in an attractive market.

DBS Chairman Koh Boon Hwee said: "Taiwan is an attractive market, and an important part of our Greater China strategy. We intend to fully leverage our extensive footprint in Hong Kong, and our growing presence in China, to intermediate the increasing trade and investment flows between Taiwan, Hong Kong and China."

He added: "Today, DBS counts many Taiwanese SMEs among our customers in Greater China. With this acquisition, we will be able to better service our existing clients given our ability to reach out to their Taiwan-based parent companies as well."

TC Lee, Country Head of DBS in Taiwan, said: "We will rebuild Bowa's franchise and combine it with our strong regional network to serve Taiwan's SMEs and mass affluent individuals. This entails meeting both their business banking and personal wealth management needs. All 39 branches will be rebranded as DBS branches and we look forward to transferring best practices from Hong Kong and Singapore as we establish a firm banking foothold in Taiwan."

DBS expects the definitive agreement to be executed between itself, CDIC, Resolution Trust Corporation Fund, Executive Yuan, and Bowa within a fortnight. The transaction is subject to regulatory approval and is expected to close by end May.

About DBS
Headquartered in Singapore, DBS is one of the largest financial services groups in Asia with operations in 15 markets. The largest bank in Singapore as measured by assets, and a leading bank in Hong Kong, DBS' "AA-" and "Aa1" credit ratings are among the highest in the Asia-Pacific region. DBS has leading positions in corporate, SME and consumer banking, treasury and markets, wealth 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.

About Bowa
Bowa Bank was established in March 1992. Since then, it has grown its network to 42 outlets island-wide, comprising 39 domestic branches, 1 trust department, 1 international business unit and 1 overseas business unit. Bowa was taken over by CDIC in August 2007 and was separated into good and bad banks, to be auctioned off separately.