09:44 DB-HSI @EP0507<03799> - Announcement (2) 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. All necessary arrangements will be made to enable the New Warrants to be admitted to the Central Clearing and Settlement System. Other than being a licensed bank regulated by the Hong Kong Monetary Authority and, for the purpose of investment business in the U.K., by the Financial Services Authority, 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 Bundesanstalt Finanzdienstleistungsaufsicht (Federal Financial Supervisory Authority). The Issuer's senior long term debt is rated Aa3 by Moody's Investors Service, Inc., AA- by Standard and Poor's Ratings Group and AA- by Fitch IBCA Ltd. The Issuer has undertaken 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 27th April, 2005 (the "Base Listing Document") (both the English version and the Chinese translation), any addenda or successor document 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 17th January, 2005 (both the English version and the Chinese translation) and the Second Supplemental Listing Document to be dated on or about 9th May, 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 Deutsche Securities Asia Limited, which is presently at 55/F, Cheung Kong Center, 2 Queen's Road Central, Hong Kong. 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 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 acting through its appointed liquidity provider may be the only market participant in the Warrants and the secondary market for the Warrants may be limited. The Issuer has appointed Deutsche Securities Asia Limited (Broker ID Number 9529, Tel: (852) 2203 6116, Address: 55/F, Cheung Kong Center, 2 Queen's Road Central, Hong Kong) as its liquidity provider. The liquidity provider will provide liquidity by responding to requests for bid and offer quotes. A quote may be obtained by calling the above telephone number. In the secondary market, the Issuer or any of its affiliates may from time to time implement promotion programmes with a selected number of brokers or banks within a selected period of time. Under such programmes, retail investors may be offered a partial or total commission rebate or other forms of incentives in connection with certain warrants issued by the Issuer. The Hang Seng Index (the "Index") is published and compiled by 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 Seng 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 in relation 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