10:19 BI-MTRC @EC0512<04948> & BI-SHK P@EC0603<04949> - Ann. (2) * `Average Price' shall be the arithmetic mean of the closing prices of one Share (as derived from the Daily Quotation Sheet of the Stock Exchange, subject to any adjustments (as determined by the Issuer in accordance with the terms and conditions of the Warrants as set out in the Base Listing Document) to such closing prices as may be necessary to reflect any capitalisation, rights issue, distribution or the like) for each Valuation Date (as defined in the terms and conditions of the Warrants). On the Expiry Date, if the Exercise Price is less than the Average Price, the Warrants will be automatically exercised. It is not necessary, therefore, for a holder of Warrants to submit an Exercise Notice in order to exercise its Warrants and the Issuer will pay to the holder of Warrants an amount calculated as described above (minus exercise expenses in accordance with the terms and conditions of the Warrants). The Issuer is licensed for Types 1 and 6 regulated activity by the Securities and Futures Commission and is not regulated by any of the bodies referred to in Rule 15A.13(2) of the Rules Governing the Listing of Securities on the Stock Exchange. 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 which has issued the underlying securities. The premium, gearing, effective gearing and implied volatility in respect of the Warrants are as follows: Warrants Premium Gearing Effective Implied Gearing Volatility MTRC Call 5.75% 12.90x 6.50x 23.00% Warrants SHK Call 10.11% 17.10x 7.69x 21.00% Warrants It should be noted that the above values should not be compared to similar information provided by other issuers of derivative warrants listed on the Stock Exchange because different issuers adopt different valuation models. Application will be made to the Listing Committee of the Stock Exchange for the listing of, and permission to deal in, the Warrants on the Stock Exchange and the issue of the Warrants is conditional upon listing being granted. Dealings in the Warrants are expected to commence on the Stock Exchange on or about 18 May 2005. Warrants will be issued subject to the terms and conditions of the Issuer's base programme document dated 22 April 2005 (the `Base Programme Document') along with the product listing document dated 22 April 2005 (the `Product Listing Document', and together with the Base Programme Document, the `Base Listing Document') as supplemented by relevant supplemental listing document (the `Supplemental Listing Document') to be dated on or about 17 May 2005. Copies of the 2003 and 2004 Annual Reports of the Issuer, the relevant Supplemental Listing Document, the Base Listing Document and a Chinese translation of each document may be inspected, from the date of commencement of the dealing in the Warrants on the Stock Exchange up to and including the Expiry Date, during usual business hours on any weekday (Saturdays, Sundays and holidays excepted) at the offices of BOCI Securities Limited which is presently at 20/F, Bank of China Tower, 1 Garden Road, Hong Kong. Prospective purchasers of Warrants should be aware that the price of Warrants may fall in value as rapidly as they may rise and prospective purchasers should be prepared to sustain a total loss of the purchase price of their Warrants. In choosing to deal in the Warrants a prospective purchaser should consider carefully whether the Warrants are suitable for him/her in light of his/her experience, objectives, financial position and other relevant circumstances. The Issuer has appointed BOCI Securities Limited (Broker ID Number: 9543 and Telephone Number: 2867 6351) of 20/F, Bank of China Tower, 1 Garden Road, Hong Kong as liquidity provider (the `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. Prospective purchasers of the Warrants should be aware that such appointment does