National Extends Share Buy-Back By An Additional $1 billion - 9 May 2002

National Australia Bank today announced it will extend its share buy-back program by an additional $1 billion and will also modify its Dividend Reinvestment Plan.

The extension of the buy-back program is a result of the National's strong capital position, a consistent record of internal capital generation and a commitment to active capital management.

The National has previously announced an ongoing policy of buying back capital issued under the Dividend Reinvestment Plan and various other share and option schemes.

"The additional buy-back is an efficient and flexible means of continuing to maximise shareholder return and maintains our commitment to active capital management," said Chief Financial Officer, Richard McKinnon.

"Extending the buy-back is sensible capital management as our capital ratios are at present above the high end of target ranges," he said.

The National will maintain the Dividend Reinvestment Plan (DRP), which provides a cost effective way for shareholders to increase their shareholding.

A cap of 15,000 is being introduced on the number of shares per shareholder eligible to participate in the DRP. Where shares are held in a broker's clearing accounts, or by a trustee or nominee, the broker, trustee or nominee will be allowed to participate for each beneficiary up to the cap.

The cap will be effective for the 2002 interim dividend to be paid in July and is estimated to affect less than 2 per cent of shareholders.