10:56     KBC FINANCIAL PRODUCTS INT'L LTD - Announcement (3)                 

    only be exercised on the relevant Expiry Date. In respect of each         
    issue of Warrants, each respective Exercise Amount 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 sum of the Quarterly Cash            
    Settlement Amount divided by the number of Quarterly Fixing Dates         
    less (2) the Exercise Expenses.                                           
                                                                              
    Investors should note that the calculation of the Cash Settlement         
    Amount of the Warrants take into account the Quarterly Cash               
    Settlement Amount at each Quarterly Fixing Date. The Cash Settlement      
    Amount of the Warrants will unlikely be the same as the relevant          
    Quarterly Cash Settlement Amount set out above.                           
                                                                              
    * Investors should note that the description `Locked-in Return' refers    
    to the calculation of the return on the Warrants only; there is no        
    guaranteed return on the Warrants where the arithmetic mean of the        
    closing price (calculated in accordance with the terms and conditions     
    of the Warrants) of the Shares on the five Valuation Dates in respect     
    of each Quarterly Fixing Date is less than or equal to the Exercise       
    Price. Please refer to the terms and conditions of the Warrants in        
    the relevant Supplemental Listing Document.                               
                                                                              
                                                                              
    By Order of the Board                                                     
    KBC Financial Products International Ltd.                                 
                                                                              
    Hong Kong, 7th January, 2005