1
Announcement

This announcement appears for information purposes only and does not constitute an invitation or offer to acquire, purchase or subscribe for the
warrants described below.



Investors are warned that the price of the warrants may fall in value as rapidly as it may rise and holders may sustain a total loss of their
investment. Prospective purchasers should therefore ensure that they understand the nature of the warrants and carefully study the risk factors
set out in our base listing document and our supplement listing document (when available) and, where necessary, seek professional advice, before
they invest in the warrants.

Warrants
to be issued by
LEHMAN BROTHERS HOLDINGS INC.

(Incorporated in the State of Delaware)

We intend to issue the warrants detailed below (the warrants).

Stock Code 6048 6049 6052 6053 6055
Shares Existing issued
ordinary shares of
HK$0.10 each of
the company
Existing issued
ordinary shares of
HK$0.10 each of
the company
Existing issued
ordinary shares of
HK$0.025 each of
the company
Existing issued
ordinary H shares of
RMB1.00 each of
the company
Existing issued
ordinary H shares of
RMB1.00 each of
the company
Company China Mobile
Limited
China Mobile
Limited
Lenovo Group
Limited
Industrial and
Commercial Bank
of China Limited
China
Communications
Construction
Company Limited
Style European European European European European
Type Call Put Call Call Call
Settlement method Cash Settled Cash Settled Cash Settled Cash Settled Cash Settled
Issue size 200,000,000 200,000,000 100,000,000 150,000,000 200,000,000
Issue price HK$1.068 per
warrant
HK$1.056 per
warrant
HK$1.019 per
warrant
HK$0.648 per
warrant
HK$0.250 per
warrant
Expiry date 31st March, 2008 31st March, 2008 31st March, 2008 31st March, 2008 31st March, 2008
Board lot 500 warrants 500 warrants 200 warrants 1000 warrants 1000 warrants
Entitlement 1 1 1 1 1
Exercise amount 10 10 1 1 10
Exercise price HK$119.98 per 10
warrants
HK$100.00 per 10
warrants
HK$5.68 per
warrant
HK$5.33 per
warrant
HK$20.98 per 10
warrants
Implied volatility 48% 48% 74% 48% 65%
Gearing 9.89x 10.00x 5.16x 7.78x 7.15x
Effective gearing 4.52x 3.42x 2.92x 4.18x 3.47x
Premium 23.73% 15.30% 27.36% 18.61% 31.32%
Liquidity provider Lehman Brothers Securities Asia Limited (Broker ID: 9549)
26th Floor, Two International Finance Centre
8 Finance Street, Central, Hong Kong Tel: (852) 2252 6701

The implied volatility, gearing, effective gearing and premium may not be comparable to similar information
provided by other issuers of derivative warrants as different issuers may use different pricing models.





2
How do we calculate the cash settlement amount?

The warrants are in global registered form and exercisable only in integral multiples of the trading board lot.

If on the relevant expiry date the relevant cash settlement amount is greater than zero, the warrants will be
automatically exercised.

Each relevant exercise amount will entitle you to receive from us the relevant cash settlement amount in Hong Kong
dollars calculated by us as equal to:

for call warrants: {entitlement x (closing price - exercise price)} - exercise expenses

for put warrants: {entitlement x (exercise price - closing price)} - exercise expenses

The relevant closing price per share will be calculated as the arithmetic mean of the closing price of the share for each
of the five business days immediately preceding the relevant expiry date.

Where can you obtain further information?

Our base listing document dated 25th May, 2007, our addendum to the base listing document dated 6th August, 2007,
together with any further addenda or successor document, our supplemental listing document to be dated 12th
September, 2007 and our latest publicly available annual report and interim report or quarterly financial statements (if
any) will be available for inspection, together with their Chinese translations, during normal business hours at the office
of Computershare Hong Kong Investor Services Limited, which is presently at Rooms 1712-1716, 17th Floor,
Hopewell Centre, 183 Queen’s Road East, Hong Kong. Information on us can also be found on the website of the group
of companies to which we belong, which is www.lehman.com.

How will the liquidity provider provide quotes?

The liquidity provider will provide liquidity by responding to requests for bid and offer quotes. A quote may be
obtained by calling the telephone number of the liquidity provider. We or the liquidity provider may be the only market
participant for the warrants. The secondary market for the warrants may be limited.

Additional information

The warrants will constitute our general unsecured and unsubordinated contractual obligations. They are not
obligations of any other person.

An application will be made to the stock exchange for the listing of, and permission to deal in, the warrants on the stock
exchange. The date of commencement of dealings in the warrants is expected to be 13th September, 2007.

We are not regulated by any of the bodies referred to in rule 15A.13(2) or (3) of the Rules Governing the Listing of
Securities on We are subject to the reporting requirements of the U.S.
Securities and Exchange Commission.

Our long term credit ratings are A+ by Standard and Poor’s Ratings Group and A1 by Moody’s Investors Service, Inc.

Lehman Brothers Holdings Inc.

7th September, 2007