At the Board Meeting of LSCOBA on 22 March 2009, the Board of Directors passed the following resolution on HSBC's Rights Issue:-

LSCOBA (the "Association") to exercise 10,000 rights to purchase HSBC shares at HK$28 each.

All remaining rights (15,280 minus 10,000) will be first offered to the La Salle Foundation at Monday's (23 March 2009) closing price in Hong Kong. Assuming that these rights are sold at HK$12 each, the Association will receive a cash inflow of HK$63,360 (5,280 x HK$12).

The Association's number of HSBC shares will then increase from 36,673 to 46,673 and the extra cash required in this transaction will be HK$216,640 (HK$28 x 10,000 units minus HK$63,360).

Should the La Salle Foundation decide not to accept the offer, these 5,280 rights will be sold on the market on Tuesday (24 March 2009).

The current Committee also has the intention to donate these newly acquired 10,000 HSBC shares, or the equivalent cash value at that time, to La Salle College on her 80th Anniversary and hence, expresses this wish to the Committee of the future 2012-2013 term.

FINAL RESULT

The Association has confirmed that an instruction to subscribe for 10,000 rights at HK$28 each was placed on Tuesday (24 March 2009), valued at HK$280,000.

The selling instruction of the remaining 5,280 rights was placed on the same day. On Thursday (26 March 2009), the Association was confirmed that the 5,280 rights were sold to independent third parties at a market price of HK$15.1 each. Such transaction brought a cash inflow of HK$79,728 to the Association.

The net investment cost for acquiring the 10,000 shares, financed by the Association's internal resources, was HK$200,272 (HK$280,000 minus HK$79,728).

The Association's number of HSBC shares will increase from 36,673 to 46,673.

30 March 2009
LSCOBA Committee 2008/09