10:12 KC-HWL @EC0507<03765> - Announcement (1) This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for the Warrants described below. The Stock Exchange of Hong Kong Limited (the "Stock Exchange") takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. 188,000,000 European Style (Cash Settled) Call Warrants 2005 relating to existing issued ordinary shares of HK$0.25 each of Hutchison Whampoa Limited issued by KBC Financial Products International Ltd. (Incorporated with limited liability in the Cayman Islands) unconditionally and irrevocably guaranteed by KBC Bank NV (Incorporated with limited liability in Belgium) Sponsor/Manager KBC Financial Products Hong Kong Limited Announcement The directors of KBC Financial Products International Ltd. (the "Issuer") announce their intention to issue 188,000,000 European Style (Cash Settled) Call Warrants 2005 (the "Warrants"), every ten Warrants relating to one existing issued ordinary share of HK$0.25 each (the "Shares") of Hutchison Whampoa Limited (the "Company"), at an issue price of HK$0.450 per warrant. The Warrants are European style and may only be exercised on 11th July, 2005 (the "Expiry Date"). The Warrants are in registered form and exercisable only in the trading board lots of 10,000 Warrants. Every ten Warrants will entitle the holder on exercise thereof to receive from the Issuer a payment of an amount in Hong Kong dollars calculated by the Issuer (the "Cash Settlement Amount") equal to: (1) the Entitlement (subject to any adjustment) multiplied by (i) the arithmetic mean of the closing price of one Share (as derived from the Daily Quotation Sheet of the Stock Exchange (subject to any adjustment)) for each Valuation Date (being each of the five Business Days (as defined in the terms and conditions of the Warrants)) immediately preceding the Expiry Date less (ii) the exercise price of HK$75.00; less (2) the Exercise Expenses (as defined in the terms and conditions of the Warrants). If on the Expiry Date the Cash Settlement Amount is greater than zero, the Warrants will be automatically exercised (without notice being given to the holders of the Warrants) and the Issuer or its agent will pay to such holders an amount calculated in the manner described above. The payment and delivery obligations of the Issuer in relation to the Warrants will be unconditionally and irrevocably guaranteed by KBC Bank NV (the "Guarantor"). The Warrants will not be offered, transferred or sold as part of the initial distribution, or at any time thereafter, to or for the benefit of any persons resident, incorporated, established or having their usual residence in the United States. The offering of the Warrants will comply with all applicable rules in the countries in which they are offered. An application will be made to the Stock Exchange for the listing of, and permission to deal in the Warrants on the Stock Exchange. The date of commencement of dealings is expected to be 11th January, 2005. All necessary arrangements will be made to enable the Warrants to be admitted to the Central Clearing and Settlement System. Other than the Guarantor being a licensed bank in Hong Kong regulated by the Hong Kong Monetary Authority, neither the Issuer nor the Guarantor is regulated by any of the bodies referred to in Rule 15A.13(2) or (3) of the Rules. The Guarantor is supervised by the Belgian Banking and Finance Commission. The implied volatility, gearing, effective gearing and premium of the Warrants are 28 per cent., 16.2x, 7.3x and 8.9 per cent., respectively. These values may not be comparable to similar information provided by