09:28 MB-FXI25@EC0512<04957> & MB-FXI25@EP0512<04961> - Ann. (2) Copies of the published audited consolidated financial statements of the Issuer and its controlled entities ("Macquarie Group") for the two financial years ended 31 March 2003 and 31 March 2004, the 2005 Interim Directors' report and financial report of Macquarie Group for the half year ended 30 September 2004, the Base Listing Document dated 20 July 2004, (updated by an addendum dated 25 November 2004 (the "Addendum")), the Addendum, the relevant Supplemental Listing Document to be dated on or about 20 May 2005 and a Chinese translation of each document may be inspected, from the date of the commencement of dealings in each series of Warrants on the Stock Exchange up to and including the relevant Expiry Date, during usual business hours on any business day at the offices of Macquarie Equities (Asia) Limited, 19th Floor, Citic Tower, 1 Tim Mei Avenue, Central, Hong Kong. As at the date of this announcement, the Issuer has short-term and long- term credit ratings of, respectively, A1 and A by Standard and Poor's Ratings Group; P-1 and A2 by Moody's Investors Service Inc.; F-1 and A+ by Fitch Ratings Ltd . Prospective purchasers of the Warrants should be aware that the price of the 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 Macquarie Equities (Asia) Limited of 19th Floor, Citic Tower, 1 Tim Mei Avenue, Central, Hong Kong, (Broker ID Number 9599) as liquidity provider (the "Liquidity Provider") by responding to requests for bid and offer quotes for the purpose of making a market in the Warrants. A request for a quote may be obtained by calling the telephone number 2823 3788. Prospective purchasers of the Warrants should be aware that such appointment does not guarantee liquidity in the market in the Warrants, further, the Liquidity Provider may be the only market maker for the Warrants and the secondary market in the Warrants may therefore be limited. Based on the Issuer's own calculations and information, the implied volatility, the effective gearing, the gearing and the premium in respect of each series of Warrants were as follows: Warrants Implied Volatility Effective Gearing Gearing Premium 1st Series Warrants 38.00% 4.90x 9.35x 13.48% 2nd Series Warrants 38.00% 3.85x 9.35x 12.80% It should be noted that the above values should not be compared to similar information provided by other derivative warrant issuers as different issuers adopt different valuation models. The Issuer may enter into discount, commission or fee arrangements with brokers and/or any of its affiliates with respect to the primary and/or secondary market in the Warrants. In respect of the Warrants, the Issuer has entered into arrangements where it will agree to pay commission of up to 1.00% to certain brokers on behalf of clients of the relevant brokers. Such arrangements may result in a benefit to persons buying and selling the Warrants through nominated brokers by reducing the commission that would have been paid directly by such holders of the Warrants. The Issuer is regulated by the Australian Prudential Regulation Authority and is not regulated by any of the bodies referred to in Rules 15A.13(2) or (3) of the Listing Rules. The Issuer does not carry on banking business in Hong Kong. It is not an Authorised Institution under the Banking Ordinance (Chapter 155 of the Laws of Hong Kong) and therefore is not subject to the supervision of the Hong Kong Monetary Authority. The Warrants are not in any way sponsored, endorsed, sold or promoted by FTSE/Xinhua Index Limited ("FXI"), FTSE International Limited ("FTSE") or Xinhua Financial News Network Limited ("Xinhua") or by the London Stock Exchange PLC (the "Exchange") or by The Financial Times Limited ("FT") and neither FXI, FTSE, Xinhua nor Exchange nor FT makes any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE/Xinhua China 25 Index (" the Index") and/or the figure at which the Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by or on behalf of FXI. However, neither FXI or FTSE or Xinhua or Exchange or FT shall be liable (whether in negligence or otherwise) to any person for any error in the Index and neither FXI, FTS, Xinhua or Exchange or FT shall be under any obligation to advise any person of any error therein. "FTSE TM" is a trade mark jointly owned by the London Stock Exchange PLC and The Financial Times Limited. "*" is a trade mark of FTSE International Limited. "Xinhua" and "*" are service marks and trade marks of Xinhua Financial News Network Limited. All marks are licensed for use by FTSE/ Xinhua Index Limited. 17 May 2005 Macquarie Bank Limited (*For the Chinese names, please refer to the announcement.)