1. On 19 August 2005, we published an article ("the Article") entitled "RBS, Merrill and KS Li buy into BOC" on our website at www.financeasia.com where we described Temasek Holding (Private) Ltd ("Temasek") as "the Lee family trust".
2. We recognise that the Article meant or was understood to mean that:
(a) the directors of Temasek manage the assets of Temasek, or connive at such management, for the benefit of the Lee family, including Ms Ho Ching, and not in accordance with the laws and duties which govern them and Temasek, and they have therefore acted illegally and in breach of trust; and
(b) Temasek has acted illegally.
3. We admit and acknowledge that these allegations and the allegation that Temasek is "the Lee family trust" are false and completely without foundation. We unreservedly apologise to Temasek and members of the Board of Directors of Temasek, namely Mr S Dhanabalan, Ms Ho Ching, Mr Kwa Chong Seng, Mr Lim Siong Guan, Mr Sim Kee Boon, Mr Fock Siew Wah, Mr Koh Boon Hwee, Mr Kua Hong Pak, Mr Goh Yew Lin and Mr Simon Israel for the distress and embarrassment caused to them by these allegations.
4. We undertake not to make further allegations to the same or similar effect.
5. We have agreed to pay Temasek and the members of the Board of Directors of Temasek damages by way of compensation, and to indemnify them for all the costs and expenses incurred by them in connection with this matter.