10:12 CS-HSBC@EC0506B<04441> - 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. Third Further Issue of 400,000,000 European Style (Cash Settled) Call Warrants 2004-2005 relating to the existing issued ordinary shares of US$0.50 each of HSBC Holdings plc 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 2,600,000,000 European Style (Cash Settled) Call Warrants 2004-2005 (Stock Code: 4441) relating to the existing issued ordinary shares of US$0.50 each of HSBC Holdings plc (the `Original Warrants', together with the New Warrants, the `Warrants'). The closing price of the Original Warrants on April 18, 2005 was HK$0.14. 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 Expiry Board Exercise Price Date Lots Price HSBC US$0.50 HK$0.153 June 28, 4,000 HK$123.88 Holdings 2005 plc The Warrants are European style and may only be exercised on the 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 Entitlement (as defined in the terms and conditions of the Warrants) (subject to adjustment) multiplied by (i) 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 the Expiry Date as more fully described in the terms and conditions of the Warrant) less (ii) the Exercise Price (subject to adjustments); less (2) the Exercise Expenses (as defined in the terms and conditions of the Warrants). For the avoidance of doubt, if the Cash Settlement Amount is a negative figure, it shall be deemed to be zero. If, on the 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 implied 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. Implied Gearing Effective Premium Volatility Gearing 10 per cent. 80.39X 30.61X 1.96 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 the 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