09:33 <04987>, <04988> & <04989> - Announcement (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 of Hong Kong Limited (the "Stock Exchange"), subject to any adjustments (as determined by the Issuer in accordance with the Conditions) to such closing prices as may be necessary to reflect any capitalisation, rights issue, distribution or the like) for each of the 5 Valuation Dates prior to expiry. The Warrants will be automatically exercised on the Expiry Date (without any notice being given to the holders of the Warrants) if the Cash Settlement Amount on the Expiry Date is greater than zero and the Issuer will pay to the holders of the Warrants an amount less exercise expenses calculated in accordance with the Conditions of the Warrants. If the Cash Settlement Amount is less than or equal to zero, all Warrants shall be deemed to expire on the Expiry Date without value. The Warrants constitute general unsecured contractual obligations of the Issuer and of no other person. If you purchase the Warrants you are relying upon the creditworthiness of the Issuer. Application will be made to the Listing Committee of the Stock Exchange for listing of, and permission to deal in, the Warrants. The Issuer has been informed that consideration of such application will go through the normal application procedure pursuant to the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules") and no guarantee that such approval will be granted can be given. If such permission is granted, it is anticipated that dealings in the Warrants will commence on the Stock Exchange on or about 3 June 2005. 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 2004 and 31 March 2005, the Base Listing Document dated 30 May 2005, the relevant Supplemental Listing Document to be dated on or about 2 June 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 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 Macquarie Equities (Asia) Limited of 19th Floor, Citic Tower, 1 Tim Mei Avenue, Central, Hong Kong, the Broker ID Number is 9557 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, implied volatility, effective gearing, gearing and premium in respect of each series of Warrants are as follows: Warrants Implied Volatility Effective Gearing Gearing Premium 1st Series Warrants 28.00% 5.28x 11.20x 16.07% 2nd Series Warrants 12.00% 11.63x 19.60x 3.89% 3rd Series Warrants 12.00% 14.42x 41.03x 5.27%