Close to 80% of rentals locked in for 2003

Singapore, 3 March 2003 - CapitaLand's blue chip office portfolio occupancies and rentals, which outperformed market benchmarks in 2002, will continue to support 2003 earnings as close to 80% of its leases are already locked in for 2003.

About 35% of its blue chip portfolio is located in the choice Raffles Place business district and another 42% in the Shenton Way/Tanjong Pagar central area. These properties include Caltex House, Hitachi Tower, Six Battery Road, Temasek Tower and Capital Tower. Rentals for these prime properties continue to remain above average prime rents in the central business district. Going forward, CapitaLands office portfolio rental returns in Singapore will be augmented by Raffles City Shanghai, a prime office and retail complex currently under development in the heart of Shanghais business district, near the historic Peoples Square. In spite of the current macro-economic situation, the steady rental income from its office portfolio in Singapore will help CapitaLand to weather the challenging times ahead. The Company will continue to focus on improving its portfolio yield in order to ensure premium value and maintain its leadership position.

CapitaLands quality office properties in Singapore have outperformed the market in 2002 as intensive asset management have given them an edge over those of the market. Its portfolio occupancy of 91% has exceeded the markets 84% as at end 2002. In addition, while market rental rates have declined between December 2001 and December 2002, the average rent of all leased spaces in its office portfolio has actually increased over the same time frame.

This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties, competition from other companies and venues for the sale/distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes, and the continued availability of financing in the amounts and the terms necessary to support future business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management on future events.