[Structured Product] KODA ELI

The comparison of KODA ELI vs. actual stock purchase illustrates that:

1. The cost of buying stock via a KODA ELI would be lower than that via actual stock purchase for a range of stock prices as long as the Closing Price is below the Knock-out Price
2. Beyond the Reference Price, the KODA ELI investor would be worse off - buying at a level higher than the actual Closing Price.

Calculation e.g. Macquarie KODA ELI Term Sheet dated Nov 23, 2005
Series Number                           58382 (365 Days)
Issue Date                              23-Nov-05
Minimum Application Amount              Not applicable
Protected Period                        24-Nov-05 until 21-Dec-05
Last Accumulation Date (Maturity Date)  21-Nov-06
Final Settlement Date (Payment Date)    23-Nov-06
Settlement Currency                     HKD
=====================================================================
Share             SEHK    Board Ref.   Knock No. of Total  Indicative
                  Code    Lot   Price  Out   Shares No. of Purchase
                                %      Price Per    Shares Price
                                       %  Day           
----------------- ------- ----- ------ ----- ------ ------ ----------
HUTCHISON WHAMPOA 0013.HK 1,000 95.40% 105%  30     7,380  521,699.58
=====================================================================
Period  Accumulation    Accumulation  No. of    Settlement     No. of
        Period          Period        Business  Date           Shares
        Start Date      End Date      Days
------  ------------    ------------  --------  -----------    ------
1       24-Nov-05       21-Dec-05      20       23-Dec-05      600
2       22-Dec-05       23-Jan-06      20       25-Jan-06      600
3       24-Jan-06       22-Feb-06      20       24-Feb-06      600
4       23-Feb-06       22-Mar-06      20       24-Mar-06      600
5       23-Mar-06       24-Apr-06      20       26-Apr-06      600
6       25-Apr-06       24-May-06      20       26-May-06      600
7       25-May-06       22-Jun-06      20       26-Jun-06      600
8       23-Jun-06       20-Jul-06      20       24-Jul-06      600
9       21-Jul-06       17-Aug-06      20       21-Aug-06      600
10      18-Aug-06       14-Sep-06      20       18-Sep-06      600
11      15-Sep-06       13-Oct-06      20       17-Oct-06      600
12      16-Oct-06       21-Nov-06      26       23-Nov-06      780
=====================================================================

HUTCHISON WHAMPOA’s latest price = 75.80 (as of 2005/11/23 14:15)
Then
Purchase Price (Purchase Amount)
= Closing Price x Reference Price % x Total No. of Shares
= 75.80 x 95.40% x 7,380
= 533,671.42
Reference Price
= Closing Price x Reference Price %
= 75.80 x 95.40%
= 72.313
Knock-out Price = Closing Price x Knock-out Price %
= 75.80 x 105.00%
= 79.59
Best scenario for total accumulation
-Reference Price <= Daily Closing Price < Knock-out Price i.e. 72.313 (inclusive) to 79.59 (exclusive)
Min. Total Accumulation
= Accumulation for 1st period
= 600
Max. Total Accumulation
= Total No. of Shares
= 7,380
Max. Daily Savings
= Knock-out Price - Reference Price
= 79.59 - 72.313
= 7.277
Max. Total Savings
= Max. Total Accumulation x Max. Daily Savings
= 7,380 x 7.277
= 53,704.26

Reference
Macquarie KODA ELI