Ernst & Young Withdraws Nonperforming Loan Report

Ernst & Young Withdraws Nonperforming Loan Report

May 15, 2006

    LONDON, May 15 /Xinhua-PRNewswire/ -- The Nonperforming
Loan (NPL) Report that was issued on 3 May 2006 reported
that the NPL exposure for China was estimated at US$911
billion.  Throughout the report this amount was identified
as a potential future amount that includes NPLs totaling
approximately US$358 billion for the big four commercial
banks.  Upon further research, Ernst & Young Global
finds that this number cannot be supported, and believes it
to be factually erroneous.

    The NPL Report did not go through our normal internal
review and approval process before it was released to the
public and, as it contains errors, we are withdrawing the
report.

    The official level of NPLs of US$133 billion for the
big four commercial banks in China is computed on a
regulatory and accounting standard based on objective
evidence of impairment.  Ernst & Young China serves as
auditors for one of those four commercial banks and their
audit, performed under international standards of auditing
in order to form an opinion on the bank's state of affairs
in accordance with International Financial Reporting
Standards, supports the bank's contribution to the total of
US$133 billion for all four of the commercial banks.

    We apologize that this erroneous report was issued.  We
sincerely regret any misleading views that the report
conveyed.

    About Ernst & Young

    Ernst & Young, a global leader in professional
services, is committed to restoring the public's trust in
professional services firms and in the quality of financial
reporting. Its 107,000 people in 140 countries pursue the
highest levels of integrity, quality, and professionalism
in providing a range of sophisticated services centered on
our core competencies of auditing, accounting, tax, and
transactions. Further information about Ernst & Young
and its approach to a variety of business issues can be
found at http://www.ey.com/perspectives . Ernst & Young
refers to the global organization of member firms of Ernst
& Young Global Limited, each of which is a separate
legal entity. Ernst & Young Global Limited does not
provide services to clients.

    This press release has been issued by EYGM Limited, a
member of the global Ernst & Young organization.

    For more information, please contact:

     Kevin Russell, 
     Ernst & Young Global Public Relations 
     Tel:    [phone]
     Mobile: [phone]
     Email:  [e-mail]

SOURCE  Ernst & Young