Standard Chartered PLC — Capital/Financing Update 2005

Jun 17, 2005

Standard Chartered takes stake in

Asia Commercial Bank, Vietnam

International bank to provide technical assistance to Vietnamese bank

Friday 17 June 2005, Ho Chi Minh City – Standard Chartered and Asia Commercial Bank, Vietnam ("ACB") announced today that Standard Chartered has acquired a stake in ACB, one of the leading joint stock banks in the country. Standard Chartered is the first foreign bank to be allowed by the Government and the State Bank of Vietnam to purchase a stake in a domestic financial institution.

As part of the agreement, Standard Chartered is introducing fresh capital into the bank such that post-acquisition, it will own 8.56 per cent of the enlarged capital of ACB. The total investment will be approximately US$22 million, in cash. In addition Standard Chartered will provide technical assistance in the areas of risk management, consumer banking, brand and distribution.

Commenting on the partnership, Mervyn Davies Group Chief Executive of Standard Chartered said, "With a population of over 80 million people, Vietnam is one of the fastest growing economies in Asia with huge potential in consumer banking. ACB is one of the premier banks in the Country, and its growth and development will benefit both the consumers and the industry in Vietnam."

"ACB is taking the lead to be international standards in risk and compliance management, sales and marketing, human resource management, as well as product development, brand and distribution. We believe our global expertise and experience in Asia will provide a strong complement to support these objectives."

Mr Tran Mong Hung, Chairman of Asia Commercial Bank said, "We are delighted to have Standard Chartered as our partner. We intend to leverage strengths of Standard Chartered to drive the growth of ACB for the benefit of all our stakeholders. We will work with Standard Chartered to enhance our product range, services and delivery standards to become the best bank in our country."