International Bank of Asia Introduces Magi© Children Insurance Savings Plan to Cater for the Needs of Parents

Following up on the successful Magi© Children Savings Account, launched by IBA in 2003 to instill the concept of savings among youth, IBA and Citi-Fubon Life have collaborated to introduce the Magi© Children Insurance Savings Plan to assist parents in preparing for future educational costs and at the same time offer extra protection for their children.

Ms. Shera Lee, Senior Vice President and Head of Consumer Banking of IBA, said, "We are very pleased that Citi Fubon Life can again offer us a tailor-made savings insurance plan to match the needs of our customers. The two endowment plans that IBA launched with Citi Fubon Life in November last year have received a very good response. We believe the Magi© Children Insurance Savings Plan will be just as successful because it combines two important elements, financial protection and financial prudence."

The Magi© Children Insurance Savings Plan combines the benefits of a target savings plan and life insurance. It is specially designed for parents to support their children's tertiary education. With choice of 3-year or 10-year payment periods, the assured amount can be as much as US$300,000. The plan offers guaranteed cash values, with 25% of the total amount payable annually at the insured's age of 18, 19, 20 and 21. In addition, the parents will receive 1% of the assured amount as education bonus upon the insured child's graduation from secondary school. The minimum annual premium of this product is only US$680.

On top of the newly launched Magi© Children Insurance Savings Plan, IBA also offers the Magi© Children Savings Account to enable children to develop a good habit of savings. The special designed passbook and Account Photo Card enable children to understand the importance of money management when they are young. Magi© Children Savings Account also incorporates an innovative Savings Points Plan enabling parents to increase their children's account balance through their daily spending. Parents only need to hold an IBA Credit Card. Every dollar they spend on the IBA credit card will help increase the child's deposit. Every 20,000 IBA Credit Card bonus points (1 bonus point for every HK$1 in spending) translates into a HK$100 deposit credited to the child's Magi© Children Savings Account on a monthly basis. By doing so, parents can enjoy the exclusive benefits of an IBA Credit Card and at the same time generate cash deposits for their children.

From now until April 30, 2005, parents who subscribe to a Magi© Children Insurance Savings Plan with an annual insurance premium of US$3,000 can receive HK$300 "Lai See" or they can receive a cartoon animal CD holder if they open a Magi© Children Savings Account. All subscribers can participate in the "Like Parents Like Children" photo contest to win a grand prize of HK$10,000.

About IBA

IBA is a full service-banking corporation in Hong Kong providing a wide range of financial services including consumer finance, retail and commercial banking, leasing and investment services. IBA services its customers through 37 offices including Superbranches, Ambassador Privileged Banking Centers and Securities Services Centers as well as ATMs, PhoneBanking, and an e-banking service at www.iba.com.hk. IBA is listed on the Stock Exchange of Hong Kong and is rated A-3 short-term, BBB long-term by Standard & Poor's. Fubon Financial acquired a 75% shareholding in IBA in April 2004.