09:14 BP-HSI @EC0505B<03538> - 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. Further issue of an additional 888,000,000 European Style (Cash Settled) Index Call Warrants 2004-2005 relating to the Hang Seng Index (the "Index") (the "Further Warrants") issued by BNP PARIBAS ARBITRAGE ISSUANCE B.V. (incorporated in the Netherlands with its statutory seat in Amsterdam) unconditionally and irrevocably guaranteed by BNP Paribas (incorporated in France) Sponsor Paribas Asia Equity Limited Announcement The directors of BNP Paribas Arbitrage Issuance B.V. (the "Issuer") announce that it intends to issue the Further Warrants detailed below. The Further Warrants relate to the Index and shall be consolidated and form part of a single series with an existing issue of 200,000,000 European Style Call Warrants 2004-2005 relating to the Index (Stock Code 3538) (the "Existing Warrants") (the Existing Warrants and the Further Warrants shall collectively be known as the "Warrants"). The terms and conditions of the Further Warrants shall be identical in all material respects to the terms and conditions of the Existing Warrants. The Warrants are European Style and may only be exercised on the relevant expiry date (the "Expiry Date") at the relevant strike level (the "Strike Level") and in the board lot (the "Board Lot") or integral multiples thereof, all of which are specified below. Type Index Board Lot Issue Price per Further Warrant Expiry Date Strike Level Call Hang Seng Index 10,000 HK$0.095 30 May 2005 14,100 The closing price of one Existing Warrant on 11 January 2005 was HK$0.099. The Further Warrants are represented by a global certificate in the name of HKSCC Nominees Limited in registered form. Every 10,000 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") as follows: (Closing Level - Strike Level) x Index Currency Amount - Exercise Expenses Where: "Index Currency Amount" = 10,000 x HK$1.00 ----------------- 4,400 "Closing Level" is equal to the arithmetic mean of the quotations for the Index recorded at the end of every five minute period on the Expiry Date; and "Exercise Expenses" is defined in the terms and conditions of the Warrants. If on the Expiry Date, the Cash Settlement Amount in respect of the Warrants is greater than zero, the Warrants will be automatically exercised (without notice being given by 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 BNP Paribas (the "Guarantor"). The Further Warrants have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and will not be offered, sold, delivered or traded, at any time, indirectly or directly, in the United States or to, or for the account or benefit of, any U.S. person. The Warrants may only be offered, sold, delivered or transferred at any time, directly or indirectly, to persons (including legal entities) established, resident or domiciled outside the Netherlands. The Issuer declares that any offer of the Warrants at any time complies with the relevant rules of any state where the Warrants are or will be offered. An application will be made to the Stock Exchange for the listing of and permission to deal in the Further Warrants on the Stock Exchange. The date of commencement of dealings is expected to be 18 January 2005. All necessary arrangements will be made to enable the Further Warrants to be admitted to the Central Clearing and Settlement System.