For defensive investors

Hi Mr. Tan,

I refer to the letter "High Notes 2 Not a Low-risk product" from Ms Janet Mohan, a V.P. of DBS. This letter was published today (2.10.08) on the forum page of the straits times.

In her letter, Ms Mohan stated that "DBS High Notes 2 (HN2) is a five-year, structured, credit -linked note designed for investor seeking enhanced yield by providing exposure to a basket of highly rated entities....."

She went on to state that "HN2 is not a low-risk product nor principal-protected".

However, according to the Pricing Statement (page 14), High Notes 2 is described as “…5-year structured first-to-default credit linked notes designed for defensive investors seeking enhanced yield by providing exposure to a basket of highly rated regional and international banks……”. The description implies that High Notes 2 is a safe investment for "defensive" investor. The word “defensive” was omitted in Ms Mohan’s letter, probably intentionally.

This shows how the bank is twisting its words to defend itself from alleged misrepresentation.

Kindly post this email in your blog as I wish to share my observation with others who could lose their money in HN2.

Thank you.

Wilson Tan .