10:07     INTL BK OF ASIA<00636> - Announcement (4)                           

    The Directors of the Company consider that entering into the              
    Business Co-operation Agreements will give the Company and IBA            
    Credit better access to Taiwanese individuals and corporate               
    entities with business interests in Hong Kong and who require             
    banking and financial related services in Hong Kong. Further,             
    the Company's customers with business interests in Taiwan will,           
    under the IBA/Taipei Fubon Business Co-operation Agreement, have          
    greater access to Taiwanese banking and financial related                 
    services. This will also generate fee income for the Company.             
    Therefore, the Directors consider it to be beneficial to the              
    Company to enter into the Business Co-operation Agreements to             
    which it is a party.                                                      
                                                                              
    The terms of the Business Co-operation Agreements have been               
    reached after arms length negotiations between the parties                
    thereto. The Directors of the Company (including the independent          
    non-executive Directors) are of the view that the terms of the            
    Business Co-operation Agreements are entered into in the                  
    ordinary and normal course of business of the Company, on normal          
    commercial terms and that they are fair and reasonable and in             
    the interests of the Company and the shareholders as a whole.             
                                                                              
    3.      REQUIREMENTS OF THE LISTING RULES                                 
                                                                              
    The Business Co-operation Agreements and the provision of the             
    Services thereunder constitute continuing connected                       
    transactions of the Company under Rule 14A.14 of the Listing              
    Rules.                                                                    
                                                                              
    The Directors of the Company expect that the annual aggregate             
    consideration payable by (a) the Company and IBA Credit to the            
    Fubon Group and (b) Taipei Fubon to the Company, in respect of            
    the Services under the Business Co-operation Agreements will              
    exceed the threshold stipulated under Rule 14A.33(3) of the               
    Listing Rules but will not exceed either (a) 25% of the applicable        
    ratios under Rule 14.07 of the Listing Rules, or (b)                      
    HK$10,000,000, as set out in Rule 14A.34(2) of the Listing Rules.         
    Accordingly, the above-mentioned transactions will be subject             
    to the reporting and announcement requirements under Rules                
    14A.46 to 14A.47 of the Listing Rules but will not require                
    approval by the independent shareholders of the Company.                  
                                                                              
    If the annual aggregate consideration payable by (a) the Company          
    and IBA Credit to the Fubon Group and (b) Taipei Fubon to the             
    Company, under the Business Co-operation Agreements should reach          
    or exceed the thresholds set out in Rules 14A.34(2) of the Listing        
    Rules, approval by the independent shareholders of the Company            
    will be sought.                                                           
                                                                              
    This announcement is made for the purpose of, inter alia,                 
    satisfying the announcement requirements stipulated under Rule            
    14A.47 of the Listing Rules in respect of the Business                    
    Co-operation Agreements and the transactions contemplated                 
    thereunder.                                                               
                                                                              
    Further, the Directors of the Company expect that the annual              
    aggregate consideration payable by (a) the Company and IBA Credit         
    to the Fubon Group and (b) Taipei Fubon to the Company, under             
    the Business Co-operation Agreements will not exceed 5% of the            
    applicable ratios under Rule 14.07 of the Listing Rules.                  
    Therefore, the above-mentioned transactions will not be                   
    discloseable transactions (as defined in Rule 14.06(2) of the             
    Listing Rules) for the purposes of Chapter 14 of the Listing              
    Rules.                                                                    
                                                                              
    Details of the Business Co-operation Agreements will be included          
    in the annual report and accounts of the Company in accordance            
    with Rule 14A.46 of the Listing Rules and the Company will also           
    comply with Rules 14A.37 to 14A.40 of the Listing Rules.