09:29 JP-CITIC@EC0510<03983> & JP-SPA @EC0512<03985> - Ann. (2) exercised. It is not necessary, therefore, for a holder of Warrants to submit an exercise notice in order to exercise its Warrants and the Issuer will pay to the holder of Warrants an amount calculated as described above (minus exercise expenses in accordance with the terms and conditions of the Warrants). The Issuer is not regulated by any of the bodies referred to in Rule 15A.13(2) or (3) of the Rules Governing the Listing of Securities on the Stock Exchange. The Warrants will constitute general unsecured contractual obligations of the Issuer and will be unconditionally and irrevocably guaranteed by the Guarantor which is a bank holding company registered under the Bank Holding Company Act of the United States of America. Prospective purchasers of the Warrants should note that if they purchase the Warrants, they are relying upon the creditworthiness of the Issuer and the Guarantor and have no rights under the Warrants against the company which has issued the underlying securities. Dealings in the Warrants are expected to commence on the Stock Exchange on or about 15 March 2005. The premium, gearing, effective gearing and implied volatility in respect of each series of Warrants are as follows: Effective Implied Warrants Premium Gearing Gearing Volatility Swire Call Warrants 5.98% 14.88x 7.92x 20.27% CITIC Call Warrants 6.06% 8.78x 5.16x 35.31% It should be noted that the above values should not be compared to similar information provided by other issuers of derivative warrants listed on the Stock Exchange because different issuers adopt different valuation models. Application will be made to the Listing Committee of the Stock Exchange for the listing of, and permission to deal in, the Warrants on the Stock Exchange and the issue of the Warrants is conditional upon listing being granted. As at the date of this announcement, the Guarantor's long term credit rating is Standard and Poor's, AA-, Fitch IBCA, A+, and Moody's Investors Services, Aa2. The Warrants will be issued subject to the terms and conditions of the Issuer's base listing document dated 10 June 2004 (the "Base Listing Document") as supplemented by the Supplemental Disclosure Document dated 23 September 2004 (the "Supplemental Disclosure Document") and the relevant supplemental listing document (the "Supplemental Listing Document") to be dated on or about 14 March 2005. Copies of the 2002 and 2003 Annual Reports of the Issuer, the 2002 and 2003 Annual Reports of the Guarantor, the relevant Supplemental Listing Document, the Supplemental Disclosure Document, the Base Listing Document and a Chinese translation of each document may be inspected, from the date of commencement of the dealing in the Warrants on the Stock Exchange up to and including the Expiry Date, during usual business hours on any weekday (Saturdays, Sundays and holidays excepted) at the offices of J.P. Morgan Securities (Asia Pacific) Limited which is presently at 25/F, Chater House, 8 Connaught Road Central, Hong Kong. Prospective purchasers of Warrants should be aware that the price of Warrants may fall in value as rapidly as they may rise and prospective purchasers should be prepared to sustain a total loss of the purchase price of their Warrants. In choosing to deal in the Warrants a prospective purchaser should consider carefully whether the Warrants are suitable for him/her in light of his/her experience, objectives, financial position and other relevant circumstances. The Issuer has appointed J.P. Morgan Broking (Hong Kong) Limited (Broker ID Number 9513) of 25/F, Chater House, 8 Connaught Road Central, Hong Kong as liquidity provider (the "Liquidity Provider") by providing buy and sell orders for the purpose of making market for the Warrants. Prospective purchasers of the Warrants should be aware that such appointment does not guarantee liquidity in the market in the Warrants. Further, the Liquidity Provider may be the only market maker for the Warrants and the secondary market in the Warrants may therefore be limited. The Issuer and/or its affiliates may enter into discount, commission or fee arrangements with brokers and/or any of their affiliates with respect to the primary or secondary market in the Warrants. The Issuer and/or its affiliates may also enter into arrangements where it/they will agree to pay commission to brokers on transactions in the Warrants