Allied Irish Banks, plc: Strategic Alliance With Keppel Capital Holdings Ltd.

Business Editors

DUBLIN, Ireland--(BUSINESS WIRE)--July 14, 2001

Allied Irish Banks, p.l.c. ("AIB") today issued the following statement after the announcement by Oversea-Chinese Banking Corporation Limited (OCBC Bank) of its revised offer to purchase Keppel Capital

AIB supports this offer. On completion of the transaction, the estimated financial impact for AIB from the sale of its interests in KCH would amount to a profit of EUR 93 million. In addition, the 1999 S$351 million 3 year senior bonds with warrants will be fully redeemed at par on completion.

In welcoming this development, Mr. Michael Buckley, AIB Group Chief Executive commented: "Our involvement with KCH has been very profitable for AIB. We entered this alliance in 1999 to provide us with an opportunity to actively contribute to the development of KCH's business in the region and to participate in the deregulation of the Singapore banking markets. Our involvement was structured accordingly and was consistent with our strategic focus on retail and commercial banking. In reaching our decision to accept the offer, we were mindful of the trend towards consolidation in the Singapore market and believe acceptance to be in the best interests of AIB's shareholders. We have enjoyed a very good relationship with KCH and look forward to continuing a strong commercial relationship with them and OCBC into the future."

For information purposes we attach the media release issued jointly by OCBC Bank and KCH.

OCBC BANK REVISES GENERAL OFFER FOR KEPPEL CAPITAL HOLDINGS

Revised Offer recommended by KCH Board and supported by Substantial Shareholders

Oversea-Chinese Banking Corporation Limited ("OCBC Bank") revised today the terms of its general offer for all the shares and listed warrants of Keppel Capital Holdings Limited ("KCH"), the listed holding company that owns Singapore's Keppel TatLee Bank and related financial services businesses.

Based on its preliminary view, the independent financial adviser to KCH, Dexia BIL, will advise the Board of Directors of KCH to recommend that KCH shareholders and warrantholders accept the revised offers. KCH shareholders and warrantholders should refrain from taking any action that may be prejudicial to their interests pending the issue of final advice from Dexia BIL to the Board of Directors of KCH in due course.