09:45 <04971><04972><04973> - Announcement (2) each Valuation Date (being each of the five Business Days (as defined in the terms and conditions of the Series B Warrants)) immediately preceding the Expiry Date less (ii) the Exercise Price (subject to adjustment); less (2) the Exercise Expenses (as defined in the terms and conditions of the Series B Warrants). If, on the relevant Expiry Date, the Cash Settlement Amount is greater than zero, the Warrants will be automatically exercised (without any notice being given by the holders of the Warrants) and the Issuer will pay to the holders the relevant Cash Settlement Amount calculated as described above. The implied volatility, gearing, effective gearing and premium of the 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 Effective Warrants Volatility Gearing Gearing Premium Series A 21.50 per cent. 18.70X 7.67X 6.51 per cent. Series B 20.00 per cent. 15.46X 8.50X 6.51 per cent. Series C 20.00 per cent. 17.66X 7.77X 6.34 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 any Company. The issue of the Warrants is conditional upon the Stock Exchange granting listing of, and permission to deal in, the Warrants. Application will be made to the Stock Exchange for the listing of, and permission to deal in, the Warrants. The date of commencement of dealings is expected to be 26th May, 2005. 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 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 f 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), the addendum to the Base Listing Document dated 13th May, 2005 (both the English version and the Chinese translation), any additional 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 Documents to be dated on or about 25th May, 2005 (both the English version and the Chinese translation) will be available for inspection until the relevant Expiry Date. These documents will be available for inspection at the office of European Asian Bank (Hong Kong) Nominees 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 and the relevant