09:43     MB-HS BK@XC0505<02203> & MB-SHK P@XC0504<04451> - Ann. (2)          

    Cash Settlement Amount per Board Lot =                                    
    Entitlement x (Sum of the Periodic Reference Prices/Number of Periodic    
    Fixing Dates -                                                            
    Exercise Price) x One Board Lot/Number of Warrants per Entitlement        
                                                                              
    Investors should note that the calculation of the Cash Settlement Amount  
    takes into account the Periodic Reference Price at each Periodic Fixing   
    Date.  The average of all the Periodic Reference Prices is then compared  
    with the Exercise Price before the Cash Settlement Amount is determined.  
    The Cash Settlement Amount of each series of Warrants will not be the     
    same as the relevant Periodic Reference Price set out above.              
                                                                              
    * Investors should note that the description "Average Return" refers to   
    the calculation of the return on the Warrants only; the return of the     
    Average Return Warrants is calculated by reference to the average of the  
    Periodic Reference Prices, that is, by reference to the sum of the        
    Periodic Reference Prices divided by the number of the Periodic Fixing    
    Dates; if the average of the Periodic Reference Prices is less than the   
    Exercise Price on the Expiry Date, the Warrants will expire worthless     
    and the holders of the Warrants will lose all their investment.           
                                                                              
    The Issuer does not carry on banking business in Hong Kong.  It is not    
    an Authorised Institution under the Banking Ordinance (Chapter 155 of     
    the Laws of Hong Kong) and therefore is not subject to the supervision    
    of the Hong Kong Monetary Authority.                                      
                                                                              
    Macquarie Bank Limited                                                    
                                                                              
    25 February 2005