National Takes Prompt Action On King Bros Bus Group - 23 April 2003

The National Australia Bank confirms that on the 8th and 9th of April, under securities held in respect of property, bus routes and buses, it appointed receiver/managers to companies associated with the King Bros Bus Group.

The National has $132 million of leasing and other lending to companies associated with the King Bros bus business.

Although the receiver/managers are in the early stages of their investigation of the company's affairs the National has taken an interim provision at the half year of $46 million, pending further clarification of the company's financial position.

Executive General Manager, Financial Services Australia, Mr Ian MacDonald said: "We believe it was appropriate, based on information provided by the receiver/managers, to take an early provision of $46 million which will be reflected in the accounts as at March 31."

The provision does not alter expectations for the Group's half year profit.

The National is working with the receiver/managers and other creditors to clarify and resolve outstanding issues.