09:28 KC-HSI @EP0508C<03925> - 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. Further issuance of 600,000,000 European Style (Cash Settled) Index Put Warrants 2005 relating to the Hang Seng Index (Stock Code: 3925) issued by KBC Financial Products International Ltd. (Incorporated with limited liability in the Cayman Islands) unconditionally and irrevocably guaranteed by KBC Bank NV (Incorporated with limited liability in Belgium) Sponsor/Manager KBC Financial Products Hong Kong Limited Announcement The directors of KBC Financial Products International Ltd. (the "Issuer") announce their intention to issue a further 600,000,000 European Style (Cash Settled) Index Put Warrants 2005 (the "New Warrants"), every 3,800 warrants relating to one index unit on the Hang Seng Index (the "Index") at an issue price of HK$0.122 per warrant. The New Warrants shall be consolidated and form a single series with an existing issue of 400,000,000 European Style (Cash Settled) Index Put Warrants 2005 (Stock Code: 3925) (the "Existing Warrants", together with the New Warrants, the "Warrants") relating to the Index issued by the Issuer and unconditionally and irrevocably guaranteed by KBC Bank NV (the "Guarantor") and listed on the Stock Exchange in which dealings commenced on 28th February, 2005, and details of which are contained in a Supplemental Listing Document dated 25th February, 2005. The terms and conditions of the New Warrants are identical in all material respects to the terms and conditions of the Existing Warrants. The closing price of the Existing Warrants as at 3rd May, 2005 was HK$0.129 per Warrant. The Warrants are European style and may only be exercised on 30th August, 2005 (the "Expiry Date"). The Warrants are in registered form and exercisable only in trading board lots of 10,000 Warrants. Each board lot of 10,000 Warrants 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") equal the excess of the relevant Strike Level of 13,800 over the average of the quotations for the Index recorded at the end of every five-minute interval on the relevant Expiry Date, multiplied by HK$1.00, further multiplied by 10,000 and divided by 3,800, less the Exercise Expenses (as defined in the terms and conditions of the Warrants) If on the 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, if applicable. The payment and delivery obligations of the Issuer in relation to the Warrants will be unconditionally and irrevocably guaranteed by KBC Bank NV. The Warrants will not be offered, transferred or sold as part of the initial distribution, or at any time thereafter, to or for the benefit of any persons resident, incorporated, established or having their usual residence in the United States. The offering of the Warrants will comply with all applicable rules in the countries in which they are offered. An application will be made to the Stock Exchange for the listing of, and permission to deal in, the New Warrants on the Stock Exchange. The date of commencement of dealings in the New Warrants is expected to be 10th May, 2005. All necessary arrangements will be made to enable the New Warrants to be admitted to the Central Clearing and Settlement System.