DBS Bank To Take 19.7 Percent Equity Stake In Bank Of The Philippine Islands; S$1.2 Billion Investment By DBS; Tie-Up Links Two Market Leaders In Asia.

     Business Editors

    SINGAPORE--(BUSINESS WIRE)--Dec. 23, 1999--DBS Bank (DBS) said
today it has entered into agreements and is in the final stages of
documentation on a number of transactions that would give the bank
19.7 percent ownership of Bank of the Philippine Islands (BPI), The
Philippines' most profitable financial institution.
    DBS Bank is Southeast Asia's largest bank, and the largest in
Singapore. Upon its expected merger with Far East Bank and Trust
Company (FEB) in the first quarter 2000, BPI will become the largest
bank in The Philippines.
    DBS said shares in BPI and in FEB were obtained through direct
purchases from several investors, as well as from purchases in the
open market and through put and call options agreements.
    The ownership stake announced today includes the 7.4 percent of
FEB purchased by DBS on November 9. Upon completion of the previously
announced merger of BPI and FEB, DBS will have an effective 19.7
percent ownership stake in the post-merger BPI.
    Total cost of the acquired equity stake was approximately S$1.2
billion. DBS' stake in BPI was acquired at PHP118 per share and
PHP82.50 per FEB share. The options' price is PHP82.50 per FEB share.
    DBS Bank CEO John T. Olds said the acquisition of the significant
stake in BPI "is a logical step in expanding DBS' presence in our
target Asian markets."
    "For DBS, participation in the largest and leading bank in The
Philippines moves us ahead further and faster to serve DBS customers
in this important market. With BPI's seasoned management team and
strong customer relationships remaining in place, this was a very
compelling opportunity for DBS.
    "The management of BPI and DBS have had a close and co-operative
relationship over the years, and this ownership stake is a logical
extension of that time-proven connection. We believe strongly in the
merits of the proposed merger between Far East Bank and Bank of the
Philippine Islands and are delighted to be able to take a meaningful
equity ownership in the combined entity.
    "The bottom line for us is serving our growing base of clients in
the Philippines and building shareholder value. With this transaction
and the continued leadership of the BPI management team, we are doing
exactly that," Olds said.
    DBS Bank purchased its shares of BPI from BPI Capital, FEB shares
from AIG and has entered into options agreements for FEB shares with
PhilamLife, Phinma Group and other investors in The Philippines. These
transactions together account for a total of 17.1 percent of
post-merger BPI. DBS is in the final documentary stages of agreements
for an additional 2.6 percent of post-merger BPI shares.
    Bank of the Philippine Islands' majority shareholder is the Ayala
Group, one of the Philippines' best-known and respected businesses.
    DBS Bank presently owns 60 percent of DBS Bank Philippines, the
28th largest bank in The Philippines with 19 branches, capital of
PHP1.8 billion and total assets of PHP16.1 billion. DBS Bank purchased
its ownership stake in September 1998.
About The Banks

1.   DBS Bank and its subsidiaries provide corporate and personal
lending, international trade financing, deposit-taking and checking
account services, investment banking and corporate advisory services,
private banking services, treasury services, stock broking, fund
management, insurance, credit card, cash management, custodian and
other financial and related services. Based in Singapore it is
Southeast Asia's largest bank with a market capitalisation of S$30
billion and total assets of S$111 billion. For additional information
please see the DBS website at www.dbs.com.sg.

2.   Bank of the Philippine Islands is a full service
commercial bank in the Philippines with 418 branches. Through its
subsidiaries, the bank has investments in leasing, agribusiness and
international finance. It has a current market capitalisation of
approximately PHP100 billion and total assets of PHP218 billion as of
June 30, 1999. For additional information please see the BPI website
at www.bpi.com.ph.

3.   Far East Bank provides commercial banking services throughout the
Philippines. It has 259 branches. Through its subsidiaries, Far East
Bank has investments in insurance and real estate. It has a current
market capitalization of approximately PHP47 billion, and total assets
of PHP135 billion as of June 30, 1999. For additional information
please see the FEB website at www.febtc.com.

For further enquiries, please contact:

Charles G Newton                           Yvette Thomasz
Managing Director                          Deputy Manager
Corporate Relations                        Corporate Relations
Tel: [phone]                         Tel: [phone]
Fax: [phone]                         Fax: [phone]
*T
     --30--jar/sf*

     CONTACT: DBS Bank
              Charles G Newton, (65) 320 3748
              Yvette Thomasz, (65) 321 5544

     KEYWORD: afxeu INTERNATIONAL ASIA PACIFIC EUROPE
     INDUSTRY KEYWORD: BANKING