09:19     KCPETCH@EC0509<03888> - 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.                                                             
                                                                              
    288,000,000 European Style (Cash Settled) Call Warrants 2005              
    relating to existing issued ordinary H shares of                          
    RMB1.00 each of PetroChina Company Limited                                
    issued by                                                                 
                                                                              
    KBC Financial Products International Ltd.                                 
    (Incorporated with limited liability in the Cayman Islands)               
    unconditionally and irrevocably guaranteed by                             
                                                                              
    KBC Bank NV                                                               
    (Incorporated with limited liability in Belgium)                          
                                                                              
    Sponsor/Manager                                                           
                                                                              
    KBC Financial Products Hong Kong Limited                                  
                                                                              
    Announcement                                                              
                                                                              
    The directors of KBC Financial Products International Ltd. (the           
    "Issuer") announce their intention to issue 288,000,000 European Style    
    (Cash Settled) Call Warrants 2005 (the "Warrants"), every Warrant         
    relating to one existing issued ordinary H share of RMB1.00 each of       
    PetroChina Company Limited (the "Company"), at an issue price of          
    HK$0.339 per warrant.                                                     
                                                                              
    The Warrants are European style and may only be exercised on 22nd         
    September, 2005 (the "Expiry Date"). The Warrants are in registered       
    form and exercisable only in the trading board lots of 2,000 Warrants.    
    Every Warrant 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            
    Entitlement (subject to any adjustment) multiplied by (i) the             
    arithmetic mean of the closing price of one Share (as derived from the    
    Daily Quotation Sheet of the Stock Exchange (subject to any               
    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 of     
    HK$4.80; 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 notice being        
    given to 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 KBC Bank   
    NV (the "Guarantor").                                                     
                                                                              
    The Warrants will not be offered, transferred or sold as part of the      
    initial distribution, or at any time thereafter, to or for the benefit    
    of any persons resident, incorporated, established or having their        
    usual residence in the United States. The offering of the Warrants will   
    comply with all applicable rules in the countries in which they are       
    offered.                                                                  
                                                                              
    An application will be made to the Stock Exchange for the listing of,     
    and permission to deal in the Warrants on the Stock Exchange. The date    
    of commencement of dealings is expected to be 22nd February, 2005.        
                                                                              
    All necessary arrangements will be made to enable the Warrants to be      
    admitted to the Central Clearing and Settlement System.                   
                                                                              
    Other than the Guarantor being a licensed bank in Hong Kong regulated     
    by the Hong Kong Monetary Authority, neither the Issuer nor the           
    Guarantor is regulated by any of the bodies referred to in Rule           
    15A.13(2) or (3) of the Rules. The Guarantor is supervised by the         
    Belgian Banking and Finance Commission.                                   
                                                                              
    The implied volatility, gearing, effective gearing and premium of the     
    Warrants are 34 per cent., 13.5x, 5.8x and 12.3 per cent.,                
    respectively. These values may not be comparable to similar information   
    provided by other issuers of derivative warrants as each Issuer may use