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Taiwan

E.Sun Financial Holding Company (“E.Sun”) today announced that it has reached an agreement with Asia Financial Holdings Pte. Ltd. (“AFH”), a wholly-owned subsidiary of Temasek Holdings (Private) Limited (‘Temasek”), to enter into a strategic alliance, setting another precedent for international cooperation in Taiwan’s financial industry. AFH will invest in E.Sun through its wholly-owned subsidiary, Adahlis Holdings B.V., by subscribing to approximately US$400 million convertible bonds issued by E.Sun. Upon full conversion, the investment would represent approximately 15% of the total shares outstanding on a fully diluted basis.

E.Sun is committed to professional management expertise, maximizing shareholders’ value and consistently delivering outstanding customer service. Mr. Huang Yung-Jen, Chairman of E.Sun commented, “The formation of a strategic alliance with Temasek is in line with the Taiwanese Government’s aim of financial sector reform with its key focus on enhancing the international competitive position of Taiwanese banks. This partnership will provide significant shareholder and professional support to E.Sun’s future growth.”

As part of the transaction, E.Sun and AFH have agreed to explore potential areas of cooperation with a focus on sharing best practices to further improve corporate governance, risk management as well as the suite of products and services offered to E.Sun’s customers. Chairman Huang added, “Not only will this investment strengthen the capital base of E.Sun and its long-term competitive position in Taiwan, it will also allow E.Sun the financial flexibility to pursue new growth opportunities in the face of increasing competition and challenges.”

Dr. Richard Hu, Chairman of AFH said, “We are delighted and privileged to have this opportunity to invest in one of the most profitable and well-respected banks in Taiwan. We are confident of E.Sun’s growth potential, and hope to support and add value to E.Sun’s efforts to achieve further growth.”

E.Sun and AFH were advised in this transaction by Morgan Stanley and UBS Investment Bank respectively.

About E.Sun Financial Holding Company
E.Sun Financial Holding Company is the holding company of E.Sun Commercial Bank, E.Sun Securities, E.Sun Bills and Finance, E.Sun Venture Capital, E.Sun Securities and Investment Trust and E.Sun Insurance Brokers. E.Sun is a well-run financial holding company with professional management and is a constituent of the MSCI Taiwan Index. As of December 31, 2005 E.Sun Financial Holding Company had total assets of NT$636 billion and total shareholders’ equity of NT$44 billion.

About Temasek Holdings (Private) Limited and Asia Financial Holdings Pte. Ltd.

Asia Financial Holdings Pte. Ltd. (AFH) is a wholly-owned subsidiary of Temasek Holdings (Private) Limited, an Asia investment company headquartered in Singapore. Currently, AFH holds investments in 11 banks spanning seven countries in Asia, including 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.

Established in 1974, Temasek manages a diversified global portfolio of US$63 billion, spanning Singapore, Asia and the OECD economies. Its investments are in a range of industries such as telecommunications and media, financial services, property, transportation and logistics.

For media enquiries, please contact:

Mr. Joseph Huang
Chief Strategy Officer
E.Sun Financial Holding Co. Ltd.
Tel: (8862) 2175 1313
Mobile: 0972-188-093
Email: joseph@email.esunbank.com.tw

Serene Lee
Associate Director, Corporate Communications
Temasek Holdings (Private) Limited
Tel: (65) 6828 6765
Mobile: (65) 9692 0918
Email: serenelee@temasek.com.sg