09:07     INTL BK OF ASIA<00636> - Announcement                               

                                                                              
    The Stock Exchange of Hong Kong Limited takes no responsibility           
    for the contents of this statement, makes no representation               
    as to its accuracy or completeness and expressly disclaims any            
    liability whatsoever for any loss howsoever arising from or               
    in reliance upon the whole or any part of the contents of this            
    statement.                                                                
                                                                              
    INTERNATIONAL BANK OF ASIA LIMITED                                        
    (incorporated in Hong Kong with limited liability)                        
                                                                              
    PROGRESS ANNOUNCEMENT : -                                                 
    POSSIBLE DISPOSAL OF INTEREST BY CONTROLLING SHAREHOLDER                  
                                                                              
    The Board of Directors ("Board") of International Bank of Asia            
    Limited ("IBA") refers to its previous announcements dated 13             
    December 2002 and 23 December 2002. The Board has been informed           
    by Arab Banking Corporation (B.S.C.) ("ABC") that it is still             
    considering its options in relation to the possibility of                 
    disposing of its 55 per cent. equity interest in IBA and that             
    ABC is engaged in preliminary talks with a number of parties              
    following the receipt of indicative expressions of interest.              
    The Board also understands that China Everbright Limited may              
    still consider a possible sale of its 20 per cent. stake in               
    IBA should an offer be made although no final decision has been           
    reached. The Board has also been informed that there is no                
    assurance that any transaction will eventually be consummated             
    nor any indication of the terms of any consummated transaction,           
    if any. A further announcement will be made at an appropriate             
    time. Shareholders and potential investors are reminded to                
    exercise caution when dealing in the shares of IBA and should             
    not rely on press speculation.                                            
                                                                              
    By Order of the Board                                                     
    International Bank of Asia Limited                                        
    Mike M Murad                                                              
    Vice Chairman, Managing Director and                                      
     Chief Executive Officer                                                  
                                                                              
    Hong Kong, 23rd January 2003                                              
                                                                              
    The Directors of IBA jointly and severally accept full                    
    responsibility for the accuracy of the information contained              
    in this announcement and confirm, having made all reasonable              
    enquiries, that to the best of their knowledge, their opinions            
    expressed in this announcement have been arrived at after due             
    and careful consideration and that there are no other facts               
    not contained in this announcement, the omission of which would           
    make any statements in this announcement misleading.