09:23     DB-SMIC @EC0510<03868> - 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.                                                             
                                                                              
    100,000,000 European Style (Cash Settled) Call Warrants 2005              
    relating to existing issued ordinary shares of US$0.0004 each of          
    Semiconductor Manufacturing International Corporation                     
                                                                              
    issued by                                                                 
    DEUTSCHE BANK AG                                                          
    (incorporated under the laws of Federal Republic of Germany)              
    acting through its London Branch                                          
                                                                              
    Deutsche Bank AG (the "Issuer") acting through its London Branch          
    announces its intention to issue the Warrants detailed below (the         
    "Warrants").                                                              
                                                                              
                      Call/     Exercise                                      
    Company            Put       Amount       Par Value                       
                                                                              
    Semiconductor      Call     1 Warrant     US$0.0004                       
      Manufacturing                                                           
      International                                                           
      Corporation                                                             
                                                                              
                                              Trading     Exercise            
       Issue Price    Expiry Date          Board Lots     Price               
                                                                              
          HK$0.255    10th October, 2005        1,000     HK$1.50             
                                                                              
    The Warrants are European style and may only be exercised on the Expiry   
    Date. The Warrants are in registered form and exercisable only in the     
    trading board lots specified above. Every Exercise Amount relate to one   
    existing issued ordinary share of the par value (the "Shares") of the     
    Company specified above. Every 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") as follows.                                                      
                                                                              
    The Cash Settlement Amount is equal to (1) the Entitlement (as defined    
    in the terms and conditions of the Warrants) (subject to adjustment)      
    multiplied by (i) the arithmetic mean of the closing price of the         
    Shares (as derived from the Daily Quotation Sheet of the Stock            
    Exchange, subject to 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 (subject to adjustment); 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 any notice    
    being given by the holders of the Warrants) and the Issuer will pay to    
    the holders the Cash Settlement Amount calculated as described above.     
                                                                              
    The implied volatility, gearing, effective gearing and premium of the     
    Warrants are detailed below. These values may not be comparable to        
    similar information provided by other issuers of derivative warrants as   
    each issuer may use different pricing models.                             
                                                                              
    Implied                       Effective                                   
    Volatility        Gearing       Gearing            Premium                
                                                                              
    49.50 per cent.     5.88X         3.47X    17.00 per cent.                
                                                                              
    The Warrants will constitute general unsecured contractual obligations    
    of the Issuer and no other person. Investors are relying upon the         
    creditworthiness of the Issuer and have no rights under the Warrants      
    against the Company.                                                      
                                                                              
    The issue of the Warrants is conditional upon the Stock Exchange          
    granting listing of, and permission to deal in, the Warrants.             
    Application will be made to the Stock Exchange for the listing of, and    
    permission to deal in, the Warrants. The date of commencement of          
    dealings is expected to be 7th February, 2005.                            
                                                                              
    The 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,