Board Meeting of Exchange Fund Investment Limited

The Board of Directors of Exchange Fund Investment Limited (EFIL) held a meeting today (16 May 2000).

During the Board Meeting, the Directors reviewed the operation of the Tap Facility for the Tracker Fund of Hong Kong which had proved to be very successful. As at today, the Exchange Fund had already disposed of a total of HK$60 billion worth of shares via the Tracker Fund including approximately HK$27 billion through the Tap Facility. Given the satisfactory operation of the Tap Facility, there was no need for EFIL to rush into new disposal methods at this stage.

In the meantime, the Directors had continued to review a number of alternative disposal methods, focussing primarily on share placements and exchangeable bonds. However, no decision has yet been made on which method should be adopted or the timing and size for the next disposal transaction. The Directors have agreed that further in-depth analysis and study on these disposal alternatives should be undertaken by EFIL.

The public should rest assured that EFIL will proceed with great care in dealing with the disposal programme in order to minimise possible impact on the market.

Exchange Fund Investment Limited

16 May 2000