Singapore, January 21, 2002 - CapitaLand Limited is pleased to announce that CapitaLand Fund Management will be merged with CapitaLand Financial to create a more integrated real estate based financial services unit, to be called CapitaLand Financial. This new unit, comprising property fund management and property financial services, will be a fee-based earning unit. This enlarged business unit will also drive the asset light strategy and will be a significant growth driver. CapitaLand Financial will capitalize on its experience in innovative real estate financial products. A recent example is the Peridot Investments transaction of S$200 million of residential sales receivables, which has been acclaimed as the best securitization issue by a regional financial publication. It will actively seek opportunities to bring more of such innovative real estate based financial products and services to meet the various needs of the market. The present CapitaLand Commercial will remain as a business unit with an extensive portfolio of commercial assets in Singapore and gateway cities. Under this restructuring, this will be the asset based unit comprising commercial property investment and property development. Mr Ed Ng, currently CEO of the Commercial and Fund Management business units, will be appointed Executive Vice President (Corporate) of CapitaLand Limited with effect from 1 February 2002. Mr Ng brings with him varied international experience to expand CapitaLand's international reach. Mr Hiew Yoon Khong, with effect from 1 February 2002, will be heading CapitaLand Commercial and CapitaLand Financial as Chief Executive Officer. Formerly Chief Financial Officer of CapitaLand, and until recently CEO of CapitaLand Financial, Mr Hiew has a strong understanding of the real estate business and also brings with him extensive experience in the origination of and investments in real estate based financial products. Mr Liew Mun Leong, President and CEO of CapitaLand said, "We would like to both strengthen our financial product development capability, and broaden our international presence. By integrating the property financial and property fund management business units, we will realize better synergies, ensure more effective execution and have a sharper focus as a fee income earning business unit. At the same time, we also need to ensure that we maintain a steady course to broaden our international reach." About CapitaLand CapitaLand is one of the largest listed property companies in Asia. Headquartered in Singapore, the multi-national company has property, hospitality and property-related products and services spanning more than 50 cities around the world. Its diversified business interests cover commercial and industrial buildings, residential, serviced residences, hotels, property funds, real estate financials and property services. The Company leverages on its significant asset base and market knowledge to develop fee-based businesses. CapitaLand Commercial is one of the largest business units of the CapitaLand Group. It owns, develops and manages an extensive portfolio of commercial properties in Singapore and other gateway cities including Shanghai, Hong Kong, Tokyo, Kuala Lumpur and London. CapitaLand Financial, previously CapitaLand Fund Management, was set up to capitalize on its real estate capabilities to exploit opportunities between real estate and the capital market, investing and transforming real estate into quality financial products, with the aim of increasing fee-based income for the Group. CapitaLand Financial works closely with CapitaLand Commercial and other business units to identify attractive and stable assets for injection into new property funds to meet the different risk-return profiles of investors. It will continue to pursue sector specific and regional funds targeting local and international investors.