09:48 MB-C MOB@EC0501<02181> & MB-PICC @XC0501<09088> - Ann. (1) 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. MACQUARIE BANK LIMITED (ABN 46 008 583 542) (incorporated under the laws of Australia) Notice of Expiry relating to the following warrants (the "Warrants"): Stock Code 2181 9088 Company China Mobile (Hong Kong) Limited PICC Property and Casualty Company Limited Shares Existing issued ordinary shares of HK$0.10 each of the Company Existing issued ordinary H shares of RMB1.00 each of the Company Type Call Average Return Call Issue Size 388,000,000 288,000,000 Expiry Date 21 January 2005 24 January 2005 Exercise Price HK$23.88 per ten Warrants HK$3.188 per Warrant Board Lot 5,000 2,000 Entitlement Ratio One Share per ten Warrants One Share per Warrant Last Trading Date 17 January 2005 18 January 2005 Closing prices of the Warrants as of 10 January 2005 HK$0.04 HK$0.01 Closing prices of the Shares as of 10 January 2005 HK$24.00 HK$2.525 Macquarie Bank Limited (the "Issuer") would like to remind holders of the Warrants that under the terms and conditions of the Warrants (the "Conditions"), the Warrants will expire at 10:00 a.m. (Hong Kong time) on the Expiry Date. Each Warrant will automatically be exercised at 10:00 a.m. (Hong Kong time) on the Expiry Date without notice being given to the holders of the Warrants if the Cash Settlement Amount (defined below) is greater than zero. Unless automatically exercised, the Warrants will expire immediately after the Expiry Date and all rights of the holders of Warrants and obligations of the Issuer shall cease. Warrants may only be exercised in a Board Lot or integral multiples thereof. The Warrants are European Style and exercisable only on the Expiry Date. The Warrants are in global registered form. No registrar has been appointed. Every Board Lot gives the holder thereof the right to receive from the Issuer on exercise an amount in Hong Kong dollars (the "Cash Settlement Amount") calculated by the Issuer as set out below: In respect of the Warrants with stock code of 2181, Cash Settlement Amount per Board Lot = (Average Price - Exercise Price) x one Board Lot Number of Warrants per Entitlement In respect of the Warrants with stock code of 9088, Cash Settlement Amount per Board Lot = (Sum of the Periodic Reference Prices - Exercise Price) X One Board Lot ------------------------------------ ---------------- Number of Periodic Fixing Dates Number of Warrants per Entitlement (such number of Warrants per Share) "Average Price" shall be the arithmetic mean of the closing prices of one Share (as derived from the Daily Quotation Sheet of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"), subject to any adjustments (as determined by the Issuer in accordance with the Conditions) to such closing prices as may be necessary to reflect any capitalisation, rights issue, distribution or the like) for each of the 5 Valuation Dates (as defined in the Conditions) prior to expiry. "Periodic Reference Price" means, in respect of each Periodic Fixing Date, the arithmetic mean of the closing prices of one Share (as derived from the Daily Quotation Sheet of the Stock Exchange, subject to any adjustments (as determined by the Issuer in accordance with the Conditions) to such closing prices as may be necessary to reflect any capitalisation, rights issue, distribution or the like) for each of the 5 Valuation Dates prior to such Periodic Fixing Date. "Periodic Fixing Dates" means the dates as specified in the relevant Supplemental Listing Document dated 7 June 2004. The Cash Settlement Amount shall be despatched no later than three Business Days following the last Valuation Date (as defined in the Conditions). The Issuer has made the following arrangements regarding dealings in and transfers and exercise of the Warrants: 1 Warrantholder should not be required to lodge any exercise notice if the Cash Settlement Amount is positive as the Warrants shall be automatically exercised. 2 Application will be made for the listing of the Warrants on the Stock Exchange to be withdrawn with effect from the close of business on the Expiry Date.