09:32 BP-PCCWL@EC0512<03956> - Announcement (2) Implied Volatility Effective Gearing Gearing Premium 32 per cent. 3.70X 4.74X 5.43 per cent. The Warrants will constitute general unsecured contractual obligations of the Issuer and the Guarantor and no other person. Investors are relying upon the creditworthiness of the Issuer and the Guarantor and have no rights under the Warrants against any Company. The Guarantor's long term credit ratings are AA by Standard and Poor's Ratings Group, AA by Fitch IBCA Ltd, and Aa2 by Moody's Investors Service, Inc. The Issuer and the Guarantor have undertaken during the period in which any structured products issued by the Issuer are listed on the Stock Exchange to make documents containing details of the Warrants and financial and other information on the Issuer and Guarantor available for inspection by holders of the Warrants. The documents available for inspection are copies of the Base Listing Document dated 27 May 2004 (both the English version and the Chinese translation), the Addendum to the Base Listing Document dated 23 February 2005 (both the English version and the Chinese translation) and the latest publicly available annual report and interim report (if any) of the Issuer and the Guarantor. The Supplemental Listing Document to be dated on or about 7 March 2005 (both the English version and the Chinese translation) will be available for inspection until the Expiry Date. These documents will be available for inspection at the office of Mallesons Stephen Jaques, which is presently at 37th Floor, Two International Finance Centre, 8 Finance Street, Central, Hong Kong. Before purchasing the Warrants you should ensure that you fully understand their potential risks and rewards and independently determine that they are appropriate for you given your objectives, experience, financial and operational resources, and other relevant circumstances. You should consult with such advisers as you deem necessary to assist you in making these determinations. Investors are warned that the price of the Warrants may fall in value as rapidly as it may rise and holders may sustain a total loss of their investment. Prospective purchasers should therefore ensure that they understand the nature of the Warrants and carefully study the risk factors set out in the Base Listing Document (as supplemented by the Addendum) and the Supplemental Listing Document and, where necessary, seek professional advice, before they invest in the Warrants. The Issuer and its appointed liquidity provider may be the only market participants for the Warrants and the secondary market for the Warrants may be limited. The Issuer has appointed BNP Paribas Peregrine Securities Limited as its liquidity provider for the Warrants (Address: 35th-36th Floors, ICBC Tower, Citibank Plaza, 3 Garden Road, Central, Hong Kong; Broker ID Number: 9521) who will provide prices for the Warrants in the secondary market for the life of the Warrants. The Issuer or any of its affiliates may, from time to time give a commission (whether in the form of a discount, rebate or otherwise) to certain brokers for placing the warrants. Hong Kong, 2 March 2005