HKFE Clearing Corporation Limited (HKCC), a wholly-owned member of the Hong Kong Exchanges and Clearing Limited (HKEx) Group, will adjust the contract terms of all open futures contracts on shares of Kookmin Bank and all open options contracts on Kookmin Bank Futures before the market open on the ex-dividend date of Thursday, 27 December 2001 to take account of the 6 per cent stock dividend of Kookmin Bank as announced by the Bank.

Kookmin Bank Futures Contract and Options on Kookmin Bank Futures Contract (collectively referred as Kookmin Bank Contracts in the below) will be adjusted pursuant to 010 of Regulations for Trading Stock Futures and 010 of Regulations for Trading Options on Stock Futures before the market open on the ex-dividend date of 27 December 2001.

The adjustments applicable to all outstanding contracts in Kookmin Bank Contracts are as follows:

• The adjustment factor for the stock dividend will be 0.9434, i.e. 100% / (100% + 6%);

• The contract multiplier will be increased from 10 shares to 10.6 shares;

• The Contracted Price of the Kookmin Bank Futures Contract will be multiplied by the adjustment factor 0.9434 and rounded to the nearest whole number; and

• The Strike Price of Options on Kookmin Bank Futures Contract will be multiplied by the adjustment factor 0.9434 and rounded to the nearest whole number.

Investors should consult their brokers for the adjustment results accordingly.

In addition, Hong Kong Futures Exchange Limited, a wholly-owned subsidiary of HKEx, has announced that as a result of the 6 per cent stock dividend of Kookmin Bank, parallel trading will be adopted commencing on the same date (27 December 2001). New contracts with existing HKATS (Hong Kong Futures Automated Trading System) code "KKM" will be listed for trading on the basis of the standard contract multiplier of 10 shares. Adjusted contracts with an adjusted contract multiplier of 10.6 shares will be traded under a new, temporary HKATS code "KKA". The following arrangements will be implemented:

• As of the open on 27 December 2001, a temporary code "KKA" will be applied to the outstanding positions of Kookmin Bank Contracts with adjusted contract multipliers;

• Options contract months with open interest will be available for trading under the temporary code "KKA" until open interest is zero or expiration, whichever comes first, while options contract months without open interest will be suspended as of the close of 26 December 2001;

• Futures contract months with open interest will be available for trading under the temporary code "KKA" until open interest of both futures and corresponding options in the same contract month is zero or expiration, whichever comes first, while futures contract months without open interest will be suspended as of the close of 26 December 2001 only if there is also no open interest in the options contract of the same month;

• After the close of 26 December 2001, no new contract months or option series for the adjusted contracts will be listed; and

• On the ex-dividend date, contract months for futures and options based on the standard contract multiplier of 10 shares, under the existing code "KKM", will be January 2002, February 2002, March 2002, June 2002 and September 2002.