STATE BANK OF MAURITIUS LTD

CAUTIONARY ANNOUNCEMENT

1. State Bank of Mauritius Ltd (SBM) hereby announces that SBM and Nedcor Bank have mutually agreed to terminate the Strategic Alliance relationship between them.

2. Shareholders of the Company and the public will be kept informed of further developments and are advised to be cautious when dealing in the shares of the Company.

3. SBM is also pleased to advise that the Bank is in discussions with potential partner(s) to forge a new strategic alliance consistent with the Bank’s long-term objectives.

This cautionary announcement is issued pursuant to Listing Rule 11.3

The Board of Directors of SBM accepts full responsibility for the accuracy of the information contained in this announcement.

By order of the Board.

March 06, 2006