10:21 CS-BOCHK@XC0603<09345> - Announcement (2) Implied Gearing Effective Premium Volatility Gearing 19 per cent. 111.92X 11.75X 12.78 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 any Company. The obligations of the Manager are subject to termination on the occurrence of certain events, including force majeure, on or before the issue date of the New Warrants, which is expected to be on or about March 24, 2005. The issue of the New Warrants is conditional upon the Stock Exchange granting listing of, and permission to deal in, the New Warrants. Application will be made to the Stock Exchange for the listing of, and permission to deal in, the New Warrants. The Issuer has been informed that consideration of such application will go through the normal application procedure pursuant to Chapter 15A of the Rules Governing The Listing of Securities on the Stock Exchange (the `Rules') and no guarantee that such approval will be granted can be given. The date of commencement of dealings of the New Warrants is expected to be March 29, 2005. The Issuer is not regulated by any of the bodies referred to in Rule 15A.13(2) or (3) of the Rules. The Issuer is regulated by the Swiss Federal Banking Commission and the Swiss National Bank. The Issuer's senior long term debt is rated Aa3 by Moody's Investors Service, Inc., A+ by Standard and Poor's Ratings Group and AA- by Fitch IBCA Ltd. The Issuer has undertaken for each series of Warrants to make documents containing details of the Warrants and financial and other information on the Issuer available for inspection by holders of the Warrants. The documents available for inspection during the period that any structured products issued by the Issuer are listed on the Stock Exchange are a copy of the Base Listing Document dated April 26, 2004, together with any addenda or successor to the Base Listing Document (both the English version and the Chinese translation) and the latest publicly available annual report and interim report (if any) of the Issuer. The Supplemental Listing Document dated December 5, 2003 (both in English and Chinese translation), the Second Supplemental Listing Document dated October 21, 2004 (both the English version and the Chinese translation) and the Third Supplemental Listing Document to be dated on or about March 24, 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 Credit Suisse First Boston (Hong Kong) Limited, which is presently at 45th Floor, Two Exchange Square, 8 Connaught Place, Central, Hong Kong. Information on the Issuer can also be found on the website of the group of companies to which the Issuer belongs, which is www.csfb.com. 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 should note that the description `Locked-In Return' refers to the calculation of the return on the Warrants only; there is no guaranteed return on the Warrants where the arithmetic mean of the closing price of the Shares on the five Valuation Dates in respect of each Periodic Fixing Date is less than the Exercise Price. Please refer to the Conditions of the Warrants set out in the relevant Supplemental Listing Document. 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, the Supplemental Listing Document and the Second 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 in the Warrants and the secondary market for the Warrants may be limited. The Issuer has appointed Hui Kai Securities Limited (Broker ID Number: 9519. Tel: (852) 2579 9818, Address: Rm 4206, 42nd Floor Gloucester Tower, The Landmark, 11 Pedder Street, Central, Hong Kong) as its liquidity provider. Each liquidity provider will provide liquidity by responding to requests for bid and offer quotes. A quote may be obtained by calling its telephone number. The Issuer is not the ultimate holding company of the group to which the Issuer belongs and with which the Issuer's name is identified. The ultimate holding company of the group to which the Issuer belongs 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. Second Further Issue of 800,000,000 European Style (Cash Settled) Locked-In Return* Call Warrants 2003-2006 relating to the existing issued ordinary shares of HK$5.00 each of BOC Hong Kong (Holdings) Limited issued by CREDIT SUISSE FIRST BOSTON (incorporated under the laws of Switzerland) Sponsor/Manager CREDIT SUISSE FIRST BOSTON (HONG KONG) LIMITED Credit Suisse First Boston (the `Issuer') announces its intention to further issue the series of Warrants detailed below (the `New Warrants'). The New Warrants will, from their date of issue, be consolidated and form a single series with an existing issue of 975,000,000 European Style (Cash Settled) Locked-In Return Call Warrants 2003-2006 (Stock Code: 9345) relating to the existing issued ordinary shares of HK$5.00 each of BOC Hong Kong (Holdings) Limited (the `Original Warrants', together with the New Warrants, the `Warrants'). The closing prices of the Original Warrants on March 18, 2005 was HK$0.013. The terms and conditions of the New Warrants are identical in all material respects to the terms and conditions of the Original Warrants. Every ten Warrants relate to one ordinary share of the relevant par value specified below (the `Shares') of the relevant company specified below (the `Company'). Company Share Issue Periodic Expiry Board Exercise Price Fixing Date Lots Price Dates BOC Hong HK$5.00 HK$0.013 June 10, March 5,000 HK$16.28 Kong 2004 10, 2006 (Holdings January ) 10, 2005 Limited August 10, 2005 March 10, 2006 The Warrants are European style and may only be exercised on the relevant Expiry Date. The Warrants are in registered form and exercisable only in the board lots specified above. Every ten Warrants 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 sum of the Periodic Cash Settlement Amounts (as defined below) divided by the relevant number of Periodic Fixing Dates, less (2) the Exercise Expenses (as defined in the terms and conditions of the Warrants). `Periodic Cash Settlement Amount' means, in respect of every Exercise Amount (as defined in the terms and conditions of the Warrants) and in respect of each Periodic Fixing Date, an amount in Hong Kong dollars calculated by the Issuer as equal to the greater of (1) zero and (2) (i) the Entitlement in respect of such Periodic Fixing Date multiplied by the arithmetic mean of the closing price of one Share (as derived from the Daily Quotation Sheet of the Stock Exchange, subject to any adjustments) for each Valuation Date (being each of the five Business Days (as defined in the terms and conditions of the Warrants) immediately preceding such Periodic Fixing Date) less (ii) the Exercise Price. For the avoidance of doubt, if the Periodic Cash Settlement Amount is a negative figure, it shall be deemed to be zero. Investors should note that the sum of the Periodic Cash Settlement Amount(s) to date is HK$0 in respect of every Exercise Amount. If, on any Expiry Date, the Cash Settlement Amount is more than zero, the Warrants will be automatically exercised (without any notice being given to the holders of the Warrants) and the Issuer will pay to the holders the Cash Settlement Amount calculated as described above. The volatility, gearing, effective gearing and premium of the New 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. The Index is published and compiled by HSI Services Limited (the "Index Compiler") pursuant to a licence from Hang Seng Data Services Limited (" Hang Seng Data Services"). The mark and name "Hang Seng Index" is proprietary to Hang Seng Data Services. The Index Compiler and Hang Sang Data Services have agreed to the use of, and reference to, the Index by the Issuer in connection with the Warrants but neither the Index Compiler nor Hang Seng Data Services warrants or represents or guarantees to any broker or holder of the Warrants or any other person the accuracy or completeness of the Index and its computation or any information related thereto and no warranty or representation or guarantee of any kind whatsoever relating to the Index is given or may be implied. The process and basis of computation and compilation of the Index and any of the related formula or formulae, constituent stocks and factors may at any time be changed or altered by the Index Compiler without notice. No responsibility or liability is accepted by the Index Compiler or Hang Seng Data Services in respect of the use of and/or reference to the Index by the Issuer in connection with the Warrants, or for any inaccuracies, omissions, mistakes or errors of the Index Compiler in the computation of the Index or for any economic or other loss which may be directly or indirectly sustained by any broker or holder of the Warrants or any other person dealing with the Warrants as a result thereof and no claims, actions or legal proceedings may be brought against the Index Compiler and/or Hang Seng Data Services in connection with the Warrants in any manner whatsoever by any broker, holder or other person dealing with the Warrants. Any broker, holder or other person dealing with the Warrants does so therefore in full knowledge of this disclaimer and can place no reliance whatsoever on the Index Compiler and/or Hang Seng Data Services. For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker, holder or other person and Index Compiler and/or Hang Seng Data Services and must not be construed to have created such relationship. 22 March 2005 Macquarie Bank Limited