09:38 MB-HSI @EC0507<03806> - 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 (as defined below). The Stock Exchange of Hong Kong Limited 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. 800,000,000 European Style Index Call Warrants (Cash Settled) 2005 relating to the Hang Seng Index (the "Index") (the "Warrants") Issued by Macquarie Bank Limited (ABN 46 008 583 542) (incorporated under the laws of Australia) Sponsor Macquarie Equities (Asia) Limited Macquarie Bank Limited (ABN 46 008 583 542) (the "Issuer") announces that it intends to issue the Warrants detailed below. The Number of Warrants per Entitlement specified below relates to one index unit on the Index, at an issue price specified below. 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 relevant board lot (the "Board Lot") or integral multiples thereof, all of which are specified below. Board Lot Issue Price per Warrant Number of Warrants per Entitlement Expiry Date Strike Level 10,000 HK$0.250 4,950 28 July 2005 13,000 Every Board Lot will entitle the holder on exercise thereof to receive from the Issuer a cash amount (if positive) (the "Cash Settlement Amount"): (Closing Level - Strike Level) x Index Currency Amount x One Board Lot Cash Settlement Amount = _______________________________________________________ per Board Lot Number of Warrants per Entitlement "Closing Level" shall mean the Final Settlement Price (as defined in the terms and conditions of each series of Warrants, "Conditions") for settling the Hang Seng Index July 2005 Futures Contract. "Index Currency Amount" shall mean HK$1.00. The Warrants will be automatically exercised on the Expiry Date (without any notice being given to the holders of the Warrants) if the Cash Settlement Amount on the Expiry Date is greater than zero and the Issuer will pay to the holders of the Warrants an amount less Exercise Expenses calculated in accordance with the Conditions. If the Cash Settlement Amount is less than or equal to zero, all Warrants shall be deemed to expire on the Expiry Date without value. The Warrants constitute general unsecured contractual obligations of the Issuer and of no other person. If you purchase the Warrants you are relying upon the creditworthiness of the Issuer. Application will be made to the Listing Committee of the Stock Exchange for listing of, and permission to deal in, the Warrants. The Issuer has been informed that consideration of such application will go through the normal application procedure pursuant to the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules") and no guarantee that such approval will be granted can be given. If such permission is granted, it is anticipated that dealings in the Warrants will commence on the Stock Exchange on or about 19 January 2005. Copies of the published audited consolidated financial statements of the Issuer and its controlled entities ("Macquarie Group") for the two financial years ended 31 March 2003 and 31 March 2004, the 2005 Interim Directors' report and financial report of Macquarie Group for the half year ended 30 September 2004, the Base Listing Document dated 20 July 2004, (updated by an addendum dated 25 November 2004 (the "Addendum")), the Addendum, the relevant Supplemental Listing Document to be dated on or about 18 January 2005 and a Chinese translation of each document may be inspected, from the date of the commencement of dealings in each series of Warrants on the Stock Exchange up to and including the relevant Expiry Date, during usual business hours on any business day at the offices of Macquarie Equities (Asia) Limited, 19th Floor, Citic Tower, 1 Tim Mei Avenue, Central, Hong Kong. As at the date of this announcement, the Issuer has short-term and long- term credit ratings of, respectively, A1 and A by Standard and Poor's Ratings Group; P-1 and A2 by Moody's Investors Service Inc.; F-1 and A+ by Fitch Ratings Ltd .