MEDIA RELEASE
For Immediate Release

Great Eastern Announces One-time Redemption Offer to GreatLink Choice Policyholders

Singapore, 31 July 2009: Great Eastern today announced that it is making a one-time redemption offer to its GreatLink Choice (GLC) policyholders. The offer will be open for acceptance from 3 August to 28 August 2009. During the offer period, GLC policyholders can, if they so choose, have their GLC units cancelled under this redemption offer and receive a sum equal to the original purchase price of $1.00 per unit, less the total annual payouts received to-date.

GLC is a series of investment-linked insurance products with the underlying investments in CDO (collateralised debt obligations) instruments. GLC aims to provide investors with enhanced fixed annual returns and a return of the principal amount on maturity. Insurance coverage is provided over the duration of the investment. Both the annual payouts and principal repayment on maturity are not guaranteed. At inception, the GLC products were rated AA/AA- by Standard & Poor’s, based on the terms of the instruments and other key features:

1. Each fund has a built-in loss protection level allowing for as many as approximately 16 to 23 credit events (the exact figure varies by fund) before the annual payouts and maturity benefits would be affected;

2. Each fund is made up of reference entities diversified across various industries and geographical regions; and

3. No single reference entity in any GLC fund accounts for greater than 1.5% of the fund’s overall exposure.

Since inception to-date, annual payouts have been made under the GLC products as projected. However, because of the global financial crisis, the market values of these products are at steep discounts to par due to several credit events effectively eroding the loss protection cushion. Great Eastern understands that these steep discounts have given rise to concerns among GLC policyholders.

Group CEO of Great Eastern, Mr Ng Keng Hooi said: “We are comfortable with these products as they were designed with built-in loss protection levels and diversification amongst at least 115 reference entities, spread across various industries and geographical regions. However, the global financial crisis has created much uncertainty for many investors all over the world. Market sentiments have been severely impacted and many financial instruments have been badly affected by the crisis.

“To address GLC policyholders’ concerns in these extraordinary times, we have taken a decision to make this one-time offer, as a gesture of goodwill, to redeem these products. Our offer is voluntary, and is made without any admission of liability. Further, this offer applies to GLC products only. It will not apply to any other Great Eastern products. Other than GLC products, Great Eastern did not sell any other similar structured products to its policyholders.”

GLC policyholders will in due course receive a notice from Great Eastern on the procedure for acceptance of this offer. Great Eastern’s life planners will also contact their clients to give them a product update and to take them through the specifics of the offer. GLC policyholders who have questions on the offer may also call Great Eastern’s Customer Service Officers at 1800-248-2888 or email the Company at wecare@lifeisgreat.com.sg.

GLC policyholders who choose to take up the offer will receive a refund of their original investment amounts, less total payouts received to-date, and the insurance coverage will cease.

The financial impact of the offer on Great Eastern’s financial results is explained in the media release for Great Eastern’s second quarter 2009 financial results.

About GLC
GreatLink Choice (GLC) is an investment-linked product which seeks to provide policyholders with fixed annual payouts and return of the principal amount on maturity. It is stated in the policy documents that both the annual payouts (coupons) and maturity benefit are not guaranteed. The risks of the Fund are set out in the Product Summary (Specific Risk). As a life insurance policy, GLC provides insurance coverage against death of between 101% and 110% of the single premium invested. Five GLC tranches were issued. Details of the policies and the latest prices are given in the Appendix.

About Great Eastern
Founded on 26 Aug 1908, Great Eastern Life Assurance Co Ltd is the oldest and most established life insurance company in Singapore and Malaysia. In Nov 1999, Great Eastern Holdings Ltd was incorporated and became the holding company of Great Eastern Life. Overseas Assurance Corporation Ltd, incorporated in 1920 as the first composite insurer in Singapore, merged with Great Eastern Holdings in Dec 2000. Today, Great Eastern is the largest insurance group and the market leader in Singapore and Malaysia, with $45 billion in assets and 3.8 million policyholders, and with two successful distribution channels - the tied agency force and bancassurance. The Company also operates in China, Indonesia, Vietnam and Brunei.

Great Eastern is a subsidiary of OCBC Bank, Singapore’s longest established local bank with assets of $181 billion and a network of more than 480 branches and representative offices in 15 countries and territories. Great Eastern’s subsidiary, Lion Global Investors, is one of the largest asset management companies in Southeast Asia.