09:25 BP-FXI25@EC0512<04976> - 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. 400,000,000 European Style (Cash Settled) Index Call Warrants 2005 relating to the FTSE/Xinhua China 25 Index issued by BNP PARIBAS ARBITRAGE ISSUANCE B.V. (incorporated in the Netherlands with its statutory seat in Amsterdam) unconditionally and irrevocably guaranteed by BNP Paribas (incorporated in France) Sponsor Paribas Asia Equity Limited Announcement The directors of BNP Paribas Arbitrage Issuance B.V. (the "Issuer") announce their intention to issue the Warrants detailed below ("Warrants "). The Warrants relate to the index (the "Index") specified below. The Warrants are European style, issued at the issue price ("Issue Price") and may only be exercised on the expiry date (the "Expiry Date"), at the strike level (the "Strike Level") and in the board lot (the "Board Lot") or integral multiples thereof, all of which are specified below. Type Index Board Lot Issue Price per Warrant Expiry Date Strike Level Call FTSE/Xinhua China 25 Index 10,000 HK$0.26 29 December 2005 7,500 The Warrants are represented by a global certificate in the name of HKSCC Nominees Limited in registered form. Every 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") as follows: (Closing Level - Strike Level) x Index Currency Amount - Exercise Expenses Where: "Index Currency Amount" = 10,000 x HK$1.00 -------------------------- 5,000 "Closing Level" is equal to the arithmetic mean of the quotations for the Index recorded at the end of every five minute period on the Expiry Date; and "Exercise Expenses" is 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. The payment and delivery obligations of the Issuer in relation to the Warrants will be unconditionally and irrevocably guaranteed by BNP Paribas (the "Guarantor"). 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. The Warrants may only be offered, sold, delivered or transferred at any time, directly or indirectly, to persons (including legal entities) established, resident or domiciled outside the Netherlands. The Issuer declares that any offer of the Warrants at any time complies with the relevant rules of any state where the Warrants are or will be offered. An application will be made to the Stock Exchange for the listing of and permission to deal in the Warrants on the Stock Exchange. The date of commencement of dealings is expected to be 27 May 2005. All necessary arrangements will be made to enable the Warrants to be admitted to the Central Clearing and Settlement System. Other than the Guarantor being a licensed bank regulated by the Hong Kong Monetary Authority, neither the Issuer nor the Guarantor is regulated by any of the bodies referred to in Rule 15A.13(2) or (3) of the Rules. The Guarantor is regulated by Banque de France.