Bank of Communications Accelerates Basel II Retail Internal Rating Project with Oliver Wyman and Accenture

Project Enhancing Risk and Value Analytics in the Retail Portfolio in line with CBRC Basel II Requirements

SHANGHAI; June 29, 2007 -- Bank of Communications (BoCom), Oliver Wyman and Accenture (NYSE: ACN) today held a joint contract signing ceremony in Shanghai for BoCom’s retail internal rating project. This project started at the beginning of this year. After the completion of the project, BoCom will meet advanced requirements of the Basel II capital accord, an international regulation to improve risk management and capital efficiency in banks, in its retail credit portfolio with more powerful technical support for the development of BoCom’s consumer and small business credit business.

The project includes the development of applications, behavioural scorecards and the Basel II retail model with risk measurement parameters quantifying expected loan losses. Asset classes covered include credit cards, personal consumption loans, mortgages, small business commercial mortgage and equipment finance and small business loans.

The project also includes enhancements to the retail credit data architecture and data quality management processes, aiming to use the scorecards in more efficient underwriting processes that are in line with leading international banks. It supplements the bank’s efforts to develop a more quantitative understanding of its retail portfolio, also in line with leading international banks.

Bank of Communications is one of the first Chinese banks to start a Basel II program in accordance with the requirements of the China Banking Regulatory Commission (CBRC). The program aims to create business value, enhance the credit culture, adjust customer management methods, effectively apply new risk measurement tools and improve profitability.

The retail internal rating project is the bank’s second major Basel II project. Previously, BoCom successfully developed risk measurement and internal credit ratings compliant with the accord’s Advanced Internal Ratings Based standards. That project, now in its rollout phase, is structured to quickly achieve business benefits and changes in credit culture. The rollout includes gradual application of customer profitability analysis for some large clients.

“Bank of Communications strongly embraces Basel II and aims to be among the earliest within the domestic banks to implement this stringent international standard,” said Qian Wenhui, the vice president of Bank of Communications. “We believe these efforts to improve risk management will make us stronger even if the economic climate is not as favourable as it is currently.”

Said Klaus Lucke of Oliver Wyman: “China is an important market for Oliver Wyman and BoCom is one of our most important clients. Our earlier project at BoCom to support the corporate internal rating project was a great success, as BoCom has not only taken on the recommendations, but truly embraced the results by quickly using them in business. While many banks in Asia are claiming they embrace Basel II, there are only few that so aggressively plan to use the results in business as BoCom does. BoCom seems to have learned from the lessons of a number of western banks that have first spent on compliance with Basel II and only later thought hard about getting the business benefits. We are delighted that BoCom aggressively aims to pursue business benefits from day one. Our global leadership in risk management consulting since the early 90’s is based on our ability to help financial institutions use modern risk measurement and management in business decisions and therefore allows our clients to outperform competitors with better targeting, better product propositions, more efficient processes and better informed strategic decisions regarding the risk return trade-off.”

Jeff Beg, Accenture’s client group managing director for financial services in Greater China, said, “Accenture will help Bank of Communications complete the design for the new rating system, to enhance the bank’s risk management capabilities and enable more efficient management of its retail banking portfolio. Accenture’s role is to design the IT implementation blueprint and specifications for the rating system, and our work will also allow for ease of implementation and a strong foundation for subsequent project phases.

“Accenture brings experience from more than 70 Basel II implementation programs worldwide, many of them working with Oliver Wyman, and is committed to assist banks in Greater China to achieve Basel II compliance and generate value beyond. We are delighted to support Bank of Communications, as an important client, in this mission-critical transformation program.”

About Accenture

Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance. With more than 158,000 people in 49 countries, the company generated net revenues of US$16.65 billion for the fiscal year ended Aug. 31, 2006. Its home page is www.accenture.com.

Joe Krakoviak

+1 (917) 452 2406

joe.krakoviak@accenture.com

Christine Yee

+65 6410 6481

christine.y.yee@accenture.com