| NEWS RELEASE | 19 July 2000 |
The SEHK Options Clearing House Limited (SEOCH) announced the operational arrangements for handling of Cable and Wireless HKT Limited (HKT) Options Contracts following the suspension of trading in HKT on 9 August 2000. The last day of dealing in HKT shares on the Stock Exchange will be 8 August 2000.
Trading of HKT September Options Contracts will be suspended on 9 August 2000. The last trading day will be 8 August 2000. The original expiry day for HKT September Options Contracts will remain 28 September 2000. Exercise of HKT September Options Contracts from 9 August to 28 September 2000 will be permitted. Settlement of delivery obligations in HKT shares arising from exercise of September HKT Option Contracts from 9 August to 28 September 2000 will be substituted by Pacific Century CyberWorks Limited (PCC) shares according to one of the two following alternatives as determined by SEOCH, which are based on the stock closing price of PCC as of the close of the cash market on 8 August 2000:
If the stock closing price of PCC is: -
| i) | higher than HK$18.60, then the delivery obligation arising from exercise of HKT September Options Contracts will be settled with 1.1 PCC shares for each HKT share; or |
| ii) | lower than or equal to HK$18.60, then the delivery obligation arising from exercise of HKT September Options Contracts will be settled with HK$7.23 + 0.7116 share of PCC for each HKT share. |
Margining of HKT September Options Contracts will be treated as an independent class and all margin requirements in HKT September Options Contracts must be settled in cash. The margin interval and the underlying closing price used for margin calculation on HKT September Options Contracts will be derived from the margin interval and the closing price of PCC daily. HKT shares will not be allowed to cover short call positions after 8 August 2000.
Investors who have questions about the HKT Options Contracts should contact their brokers.
Corporate Communications Department
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