CONFIDENTIAL

The due diligence team consists of professionals from an

international accounting firm working in conjunction with staff

members from the Lippo Group, especially from HCB,

7.

If the HCB Consortium makes a positive decision, what will be

future arrangements for staff and the management structure?

9.

It is premature for us to go into this, since we have not

started our due diligence review.

What is the name of the new bank?

This is still being considered, but whatever the name, it will

have to be accaptable by the Commissioner of Banking and the

Registrar General.

(a) What is the consideration?

The new banking company is taking over the recorded liabilities of BCCHK and new capital will be introduced into

the new banking company sufficient to meet the capital

adequacy requirements of the Commissioner of Banking.

(b) How much will the capital ba?

90'd

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*IDEO S. TYDMED JHULST9EJ

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