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Singapore & Beijing

Bank of China Limited (“Bank of China”) and Temasek Holdings (Private) Limited ("Temasek") jointly announced today that, following negotiations and discussions by the two entities, Temasek will, through its wholly-owned subsidiary Asia Financial Holdings (‘AFH’), acquire a 10% interest in Bank of China for US$3.1 billion. Temasek has also undertaken to subscribe for an additional US$500 million worth of shares during Bank of China’s initial public offering. This transaction is pending government and other relevant regulatory approvals.

With this agreement, Bank of China has introduced another strategic investor following the signing of the strategic investment agreement with Royal Bank of Scotland on August 18, 2005.

Subject to mutual agreement, Temasek will assist Bank of China in improving corporate governance, including the right to nominate suitable candidates for election to Bank of China’s board of directors. Other areas of collaboration and support are under discussions.

In addition to a strong focus on corporate governance, Temasek will facilitate linkages to other players in the Asian financial sector to support the development of Bank of China’s talent pool and technology base. As major financial institutions in Asia, both entities also agreed to strengthen their cooperation and contribute to the financial sector modernization in Asia.

Bank of China said,

“Temasek is a major investor in Asia, with a strong reputation and matured operating mechanism in the area of corporate governance. Bank of China is a banking group with nearly a hundred years of history, and has established a prudent business style and a broad customer network. The cooperation of these two strong financial institutions with complementary strengths will result in enhanced competitiveness. The strategic investment by Temasek will support the deepening of the overall reform for Bank of China. The transaction will help Bank of China further strengthen its capital base, improve its shareholder structure and enhance its corporate governance.”

Temasek said,

“We are delighted that an agreement has been reached with Bank of China. This is our largest direct investment in China, and is also a long term investment for us. It underlines our confidence in the long-term growth of China’s economy. More importantly, this investment represents our belief that Bank of China has transformed itself into a strong financial institution with extensive networks in China and overseas. We share the bank’s belief in its tremendous potential and are privileged to be an investor.”

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About Bank of China Limited

Bank of China is the most international commercial bank in China, with the longest history and strongest capital base. The bank is ranked 18th amongst the world’s largest 1,000 banks, and ranked first in Asia and mainland China, in terms of core capital by The Banker magazine. Bank of China’s network covers 27 countries and regions around the world, as well as 31 provinces, municipalities and autonomous zones and over 300 cities in mainland China. In Hong Kong and Macao, Bank of China is one of the local note-issuing banks. As at the end of December 2004, Bank of China has 11,307 domestic branches, 603 overseas branches and subsidiaries, and a total of 240,000 employees.

About Temasek Holdings (Private) Limited ("Temasek")

Temasek Holdings (Private) Limited ("Temasek") is an Asia investment company headquartered in Singapore. It is committed to maximising long-term shareholder value as an active investor and shareholder of successful enterprises. Established in 1974, Temasek manages a diversified global portfolio of US$54 billion, spanning Singapore, Asia and the OECD economies. Its investments are in a range of industries such as telecommunications and media, property, financial services, transportation and logistics, energy and resources, infrastructure, engineering and technology, as well as pharmaceuticals and biosciences.

About Asia Financial Holdings Pte Ltd (“AFH”)

Asia Financial Holdings, is a wholly-owned subsidiary of Temasek Holdings, an Asia investment company headquartered in Singapore. Asia Financial Holdings’ portfolio includes Bank Danamon and Bank Internasional Indonesia in Indonesia, ICICI Bank in India, Hana Bank in Korea, Alliance Bank in Malaysia and NIB Bank in Pakistan.