Adjustment to Mosel Vitelic Inc. Futures Contract and Options on Mosel Vitelic Inc. Futures Contract

Regulatory

06 Sep 2002

Hong Kong Futures Exchange Limited, a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited, will adjust the contract terms of all open futures contracts on shares of Mosel Vitelic Inc (MOS) and all open option contracts on MOS Futures before the market opening on the ex-rights date of Tuesday, 10 September 2002 to take account of the rights issue of MOS. MOS announced a rights issue of 98.8 shares for every 1,000 existing shares on 27 August 2002 at a subscription price of TW$10 per share.

MOS Futures Contract

Immediately before the market opening on the ex-rights date:

The contracted prices of all outstanding MOS Futures Contracts will be adjusted (rounded to the nearest two decimal places) as follows:
Adjusted Contracted Price = ((1000 * Contracted Price) + (98.8 * TW$10.0)) / (1000 + 98.8)
The contract multiplier for the MOS Futures Contract will be adjusted as follows:
Adjusted Contract Multiplier = 10,000 * Contracted Price/ Adjusted Contracted Price
Outstanding MOS Futures Contracts will be traded under a temporary trading symbol, MOA, until the expiration of the existing September 2002, October 2002, November 2002, December 2002 and March 2003 MOA contracts respectively, or until all open positions in both futures and corresponding options in the same contract month are closed, whichever occurs first;
After the close on 10 September 2002, no new futures contract months for the adjusted contracts will be listed; and
MOS Futures Contracts with original futures contract multiplier 10,000 will be listed under the original trading symbol, MOS. The available contract months for trading will be September 2002, October 2002, November 2002, December 2002 and March 2003.

Options on MOS Futures Contract

Immediately before the market opening on the ex-rights date:

The Strike Price of Options on MOS Futures Contract will be adjusted (rounded to the nearest two decimal places) as follows:
Adjusted Strike Price = ((1000 * Old Strike Price) + (98.8 * TW$10.0)) / (1000 + 98.8)
Outstanding Options on MOS Futures Contracts will be traded under a temporary trading symbol, MOA, until the expiration of the existing September 2002, October 2002, November 2002, December 2002 and March 2003 contracts respectively, or until all open positions in options are closed, whichever occurs first;
After the close on 10 September 2002, no new option contract months or option series for the adjusted contracts will be listed; and
Options on MOS Futures Contracts based on original Futures contract multiplier 10,000 will be listed under the original trading symbol, MOS. The available option contract months for trading will be September 2002, October 2002, November 2002, December 2002 and March 2003.

Updated 06 Sep 2002