09:57 BP-CK(H)@EC0510<04758> - 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. 200,000,000 European Style (Cash Settled) Call Warrants 2005 relating to existing issued ordinary shares of HK$0.50 each of Cheung Kong (Holdings) Limited issued by BNP PARIBAS ARBITRAGE ISSUANCE B.V. (incorporated in the Netherlands with its statutory seat in Amsterdam) unconditionally and irrevocably guaranteed by BNP Paribas (incorporated in France) Sponsor Paribas Asia Equity Limited Announcement The directors of BNP Paribas Arbitrage Issuance B.V. (the "Issuer") announce their intention to issue the Warrants detailed below. Every Exercise Amount relates to one share ("Share") of the par value ("Par Value") of Hong Kong Exchanges and Clearing Limited (the "Company"). Type Exercise Amount Entitlement Par Value Company Issue Price Expiry Date Board Lot Exercise Price Call Ten Warrants One Share HK$0.50 Cheung Kong (Holdings) Limited HK$0.40 28 October 2005 10,000 HK$70.00 The Warrants are European style and may only be exercised on the Expiry Date. The Warrants are represented by a global certificate in the name of HKSCC Nominees Limited in registered form and exercisable only in integral multiples of the board lot (the "Board Lot") specified above. Every Exercise Amount 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") as follows. Cash Settlement Amount = Entitlement x (Closing Price - Exercise Price) - Exercise Expenses. Where (i) "Closing Price" means 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, and (ii) "Exercise Expenses" has the meaning given to this term in the terms and conditions of the Warrants. If on any Expiry Date the Cash Settlement Amount is greater than zero, the Warrants will be automatically exercised (without notice being given by 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 BNP Paribas (the "Guarantor"). The Warrants have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and will not be offered, sold, delivered or traded, at any time, indirectly or directly, in the United States or to, or for the account or benefit of, any U.S. person. The Warrants may only be offered, sold, delivered or transferred at any time, directly or indirectly, to persons (including legal entities) established, resident or domiciled outside the Netherlands. The Issuer declares that any offer of the Warrants at any time complies with the relevant rules of any state where the Warrants are or will be 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 4 April 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 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 regulated by Banque de France. The implied volatility, gearing, effective gearing and premium of the 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.