Singapore Exchange Limited Announces Fair Settlement Price Of $1.21 For Links Island

Singapore Exchange Limited (SGX) today announced that $1.21 has been established as the fair settlement price for outstanding share transactions of Links Island Holding Ltd. This price was arrived at using the volume-weighted average price of Links shares over the 3 trading days of 14, 15 and 16 August 2000. This yields the greatest degree of fairness and justice to persons who transacted in Links shares during this 3-day period and whose contracts are subject to cash settlement.

In accordance with Rule 6.8.1(5) of SGX Securities Trading and its Board resolution, all outstanding market trades on 14, 15 and 16 August 2000 will be cash-settled on 3 August 2001 as follows:

• in the case of a seller who contracted to sell to the buyer at a price lower than the fair settlement price, the seller shall pay the buyer the difference between the fair settlement price and the contract price, or
• in the case of a seller who contracted to sell to the buyer at a price higher than the fair settlement price, the buyer shall pay the seller the difference between the contract price and the fair settlement price, or
• in the case of a buyer who contracted to buy from the seller at a price lower than the fair settlement price, the seller shall pay the buyer the difference between the fair settlement price and the contract price, or
• in the case of a buyer who contracted to buy from the seller at a price higher than the fair settlement price, the buyer shall pay the seller the difference between the contract price and the fair settlement price.

For example, in relation to a transaction at $1.31 per share, the buyer will pay $0.10 per share to the seller. In relation to a transaction at $1.11, the seller will pay the buyer $0.10 per share.

Meanwhile, trading in the shares of Links Island will continue to be suspended until further notice.

For short positions resulting from trades on 11 August 2000, buying in will recommence should Links shares be reinstated for trading, unless the Board of SGX Securities Trading makes other arrangements.

The fair settlement price was determined by a Settlement Committee comprising:

• Mr J.Y. Pillay, Chairman of SGX and a Board member of SGX-ST.
• Mr George Teo, Board member of SGX and SGX-ST.
• Mr Leong Yit Siong of PricewaterhouseCoopers.
• Mr Robert Wong of Robert Wong and Co.
• Ms Fang Ai Lian of Ernst & Young.

This Committee was established following the decision of the Board of SGX-ST that, in its opinion, a corner situation had been created or arisen in Links Island shares.