CITIC Tower II the Real Option.xls

EXHIBIT 2 GRADE A OFFICE RENTAL AND CAPITAL VALUE INDICES Indices 1989=100 Year Qtr Price Rental 1986 1 26 36 2 26 38 3 30 39 4 30 45 1987 1 38 48 2 39 48 3 44 57 4 42 61 1988 1 44 58 2 51 56 3 66 63 4 77 70 1989 1 91 89 2 107 102 3 100 104 4 102 106 1990 1 107 105 2 87 102 3 86 100 4 101 99 1991 1 85 96 2 84 91 3 95 90 4 101 93 1992 1 109 93 2 123 96 3 132 97 4 138 100 1993 1 146 102 2 149 105 3 155 111 4 169 114 1994 1 208 123 2 232 134 3 228 141 4 226 145 1995 1 206 144 2 193 136 3 176 133 4 171 124 1996 1 184 114 2 182 111 3 174 111 4 202 111 1997 1 220 113 2 223 115

3 204 117 4 191 118 1998 1 161 115 2 146 108 3 104 97 4 99 87 1999 1 98.4 108.2 2 100.2 99.1 3 102 96.4 4 99.3 96.3 2000 1 97.8 96.9 2 94.5 100.5 3 88 101.6 4 88.4 104 2001 1 88 109.1 2 85.5 107.9 3 79.1 104.5 Note: 1. Between Qtr 3 and 4 for the year 1999, the index construction changed. 2. The indices are transaction-based. Source: Hong Kong Government Rating and Valuation Department Quarterly Index

Citic Tower II: The Real option EXHIBIT 3 RISK-FREE RATES IN HONG KONG

Jan-98 Feb-98 Mar-98 Apr-98 May-98 Jun-98 Jul-98 Aug-98 Sep-98 Oct-98 Nov-98 Dec-98 Jan-99 Feb-99 Mar-99 Apr-99 May-99 Jun-99 Jul-99 Aug-99 Sep-99 Oct-99 Nov-99 Dec-99 Jan-00 Feb-00 Mar-00 Apr-00 May-00 Jun-00 Jul-00 Aug-00 Sep-00 Oct-00 Nov-00 Dec-00 1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun

Exchange Fund Bills Bills: Yield: 1 Month Bills: Yield: 3 Months APR APR 6.91 8.78 5.24 5.84 5.21 6.03 5.71 5.92 7.19 7.3 8.74 9.26 7.56 7.87 14.03 12.24 6.64 7.51 6.06 6.21 4.94 5.42 4.87 5.04 5.55 6.01 5.47 5.58 5.19 5.39 4.48 4.69 4.77 4.94 5.35 5.36 5.56 5.58 5.83 5.88 5.15 5.43 5.41 5.5 4.81 4.91 3.38 4.94 5.32 5.46 5.47 5.67 5.61 5.72 6.25 6.31 6.37 6.64 5.96 6.21 5.6 5.94 6.15 6.02 5.9 6.01 5.6 5.79 5.55 5.65 5.94 5.69 5.1 4.92 4.85 4.76 4.68 4.64 4 4.03 3.62 3.58 3.46 3.45

Bills: Yield: 12 Months APR 10.58 7.23 7.36 7.27 8.31 10.25 9.16 11.7 8.45 6.94 6.25 5.72 6.88 6.69 6.25 5.49 5.91 5.88 5.85 6.02 5.92 5.98 5.75 5.82 6.04 6.09 6.1 6.44 6.89 6.53 6.27 6.23 6.15 6.03 5.85 5.38 4.7 4.63 4.63 4.25 3.83 3.7

1-Jul 1-Aug 1-Sep 1-Oct Source: CEIC DRI Asia Database

3.51 3.19 2.3 1.89

3.44 3.16 2.2 1.89

3.54 3.29 2.29 2.1

0.133

0.56096

-0.267

0.307957

S X v r d1 N(d1) d2 N(d2) OP

1.463 1.6 21.5% 6.27% -0.009255018 0.496341691 -0.224255 0.42732968 $

83,444,056

Black Schole Model Stock Price minus 5% for the seller Strike Price Medium volatile Jul-00 standard normal cumulative distribution function