Arrangements For Adjustment Of Esprit Holdings Futures, Options

Highlights of the adjustment arrangements to ESP futures and options contracts are set forth below. Investors should consult their brokers for further details, or if they have any questions regarding the adjustment.

Underlying Stock Name of the Stock Futures and Options (Stock Code) - Esprit Holdings Limited (330)

HKATS Code - ESP

Corporate Action - Special dividend of $2.10 per share

Ex-date - 26 November 2008

ESP Futures - Adjustment Procedures

Adjustment will be made to the open positions of ESP futures contracts which exist after the market close on 25 November 2008, the business day immediately before the ex-date. The details of the adjustment procedures are as follows:

Adjustment Term - Formula - Remark

Adjustment Ratio (AR) - (underlying stock closing price - ordinary dividend - special dividend) / (underlying stock closing price - ordinary dividend) - Nil

Adjusted Contracted Prices (ACP) - Contracted prices of outstanding stock futures contract × AR - Rounded to the nearest two decimal places

Adjusted Contract Multiplier (ACM) - (Contracted prices of outstanding stock futures contract x 100 shares) / ACP - Rounded to the nearest four decimal places

Parallel Trading

After the market close on 25 November 2008, the business day immediately before the ex-date, the open positions will be transferred to the adjusted futures contracts. In addition, new contracts based on the standard contract multiplier will be introduced for trading on the ex-date, 26 November 2008. Details of the parallel trading on and after the ex-date are shown below:

Contract - Trading Symbol - Contract Multiplier (Shares) - Available for Trading - Addition of New Contract Months on and after the Ex-date

Adjusted - ESA - ACM - From the ex-date to 29 June 2009 - No

Standard - ESP - 100 - From the ex-date onwards - Yes

Investors should note that the cash settlement amount of adjusted and standard futures contracts on the last trading day will be calculated using their respective contract multipliers. There will not be any changes to the number of open positions and other contract terms after the transfer of positions.

ESP Options

Adjustment Procedures

Adjustment will be made to the open positions of ESP option series which exist after the market close on 25 November 2008, the business day immediately before the ex-date. The details of the adjustment procedures are as follows:

Adjustment Term - Formula - Remark

Adjustment Ratio (AR) - (underlying stock closing price - ordinary dividend - special dividend) / (underlying stock closing price - ordinary dividend) - Nil

Adjusted Exercise Price (AEP) - Exercise price of outstanding option series × AR - Rounded to the nearest two decimal places

Adjusted Contract Size (ACS) - (Exercise price of outstanding option series × 100 shares) / AEP - Rounded to the nearest four decimal places

Parallel Trading

After the market close on 25 November 2008, the business day immediately before the ex-date, the open positions will be transferred to the adjusted option series. In addition, new option series based on the standard contract size will be introduced for trading on the ex-date, 26 November 2008. Details of the parallel trading on and after the ex-date are shown below:

Contract - Trading Symbol - Contract Size
(Shares) - Available for Trading - Addition of New Option Series on and after the Ex-date

Adjusted - ESA - ACS - From the ex-date to 29 June 2009 - No

Standard - ESP - 100 - From the ex-date onwards - Yes

Investors should note that the cash settlement amount of adjusted and standard option series on the expiry day will be calculated using their respective contract sizes. There will not be any changes to the number of open positions and other contract terms after the transfer of positions. -- www.hkex.com.hk