2003 Media Releases

Deutsche Bank is pleased to announce tomorrow’s listing of its new trading product, Warrant Alternative Vehicles (WAVEs™), into the Australian market.

WAVEs™ are an ASX listed, highly geared, low cost trading alternative to trading warrants, futures and contracts for difference. The unique feature of WAVEs™, as compared to many other leveraged trading products, is that they always offer investors approximately Delta 1 (one for one exposure) to ASX listed shares or indices; the premium is low, and the time decay is minimal.

“Australian traders and investors are more sophisticated today than ever before, and are very conscious of the effects of time decay and Delta in derivatives. Deutsche Bank WAVEs™ address the time decay and Delta concerns of traders and investors by offering approximately Delta one exposure at all times, and by minimising the time decay. By minimising time decay, the value of WAVEs™ will not erode to the same extent as the value of other comparable leveraged products. Particularly during periods when markets are flat or shares are range-bound, WAVEs™ will retain a greater proportion of their value than other comparable products.” said Deutsche Bank’s Head of Derivatives Trading, David Sarkis.

WAVEs™ are issued over a range of ASX shares and the S&P/ASX200 index, with both calls and puts being offered.

“WAVEs™ allow traders to capitalise on both upward and downward movements in a share price or index, as both calls and puts are available. We have issued three calls and three puts over each underlying share or index with differing strikes.” said Pia Cooke, Deutsche Bank Structured Products Sales.

A further key feature of WAVEs™ is the presence of a knock out which is equal to the exercise price of the WAVES™. If the share price or index level touches the exercise price, the WAVE™ will get knocked out.

“This knock out feature is unique, and allows you to reassess your trading strategy. Once triggered, traders have the option to either walk away from their investment, or if they wish to retain exposure to the share or index, then they can invest in a WAVE™ with a strike that is below (calls) or above (puts) the current share price or index level.” said Pia Cooke, Deutsche Bank Structured Products Sales.

“The advantage of this over other leveraged products is that when you invest in another series of WAVEs™ with a lower or higher exercise price, you will still receive approximately Delta one exposure to the share or index.”

“Investors can also use this feature as a way of preventing unlimited losses on their investment, as this feature provides protection from further loss of capital if the market unexpectedly moves against them.” She said.

Deutsche first introduced WAVEs™ in Germany in January 2000 where they have attracted enormous interest among investors. In what is the largest retail market for derivative instruments, WAVEs™ are now the most traded instrument in the German market.

Deutsche Bank has since launched WAVEs™ in South Africa where they have also been well received.

Additional material available includes:

• How WAVEs™ differ from other leveraged instruments, including table
• Graph showing the success of WAVEs™ in Germany

For a copy of the Offering Circular or for further information, please see Deutsche Bank’s warrants website at www.dbwarrants.com

Further information

Kate Abrahams, Communications & Marketing (61 2) 9258 2416
Jill Valentine, communications & Marketing (61 2) 9258 2792