Securities and Futures (Market Conduct) (Exemption for Stabilising Action in respect of Dealings in Bonds) (No. 21) Regulations 2004

These Regulations may be cited as the Securities and Futures (Market Conduct) (Exemption for Stabilising Action in respect of Dealings in Bonds) (No. 21) Regulations 2004 and shall come into operation on 1st November 2004.

In these Regulations, unless the context otherwise requires —“Bonds” means the zero coupon convertible bonds due October 2009 issued by Air Water Inc. in November 2004 for a principal amount of up to ¥20,000,000,000, which are convertible into fully paid and non-assessable shares of common stock of Air Water Inc.;“stabilising action” means an action taken in Singapore or elsewhere by Citigroup Global Markets Limited, or any of its related corporations, to buy, or to offer or agree to buy, any of the Bonds in order to stabilise or maintain the market price of the Bonds in Singapore or elsewhere.

“Bonds” means the zero coupon convertible bonds due October 2009 issued by Air Water Inc. in November 2004 for a principal amount of up to ¥20,000,000,000, which are convertible into fully paid and non-assessable shares of common stock of Air Water Inc.;

“stabilising action” means an action taken in Singapore or elsewhere by Citigroup Global Markets Limited, or any of its related corporations, to buy, or to offer or agree to buy, any of the Bonds in order to stabilise or maintain the market price of the Bonds in Singapore or elsewhere.

Sections 197 and 198 of the Act shall not apply to any stabilising action taken in respect of any of the Bonds, within 30 days from the date of issue of the Bonds, with —

a person referred to in section 274 of the Act; or

a sophisticated investor as defined in section 275(2) of the Act.