National Settles Arbitration Proceedings With Former HomeSide Executives - 17 June 2002

National Australia Bank today said it had settled arbitration proceedings initiated in the United States in November 2001 by three former HomeSide executives. The arbitration claims were made for entitlements under existing employment contracts.

HomeSide has agreed to pay the former executives a total of US$4.65 million (approx. A$8.2 million) in settlement of their termination claims. The settlement arrangements were supported by advice from experts in US employment matters.

Details of the settlements are subject to confidentiality arrangements.

"Following the sale of the mortgage origination operations of HomeSide to Washington Mutual and the recent sale of a parcel of mortgage servicing rights, the National is moving to resolve remaining HomeSide matters in an orderly and sensible manner. This is a necessary step in that process," said National Australia Bank Chairman, Charles Allen.