National Completes Sale of HomeSide Lending Inc - 2 October 2002

National Australia Bank today announced the completion of the sale of SR Investment Inc., the parent company of HomeSide Lending Inc., to Washington Mutual Bank, FA as of 1 October 2002 on terms consistent with the original sale announcement made in August this year.

The sale is subject to customary post completion balance sheet adjustments. At the time of the announcement the sale was expected to result in a loss of US$54 million. Based on the effectiveness of the hedging operations since July the outcome is now expected to be more favourable.

The financial outcome of the sale for the year ended 30 September 2002 will not be known until mid October, following the processing of detailed portfolio information. A further announcement will be made at that time.

The sale of HomeSide Lending, Inc. represents the National's complete exit from all mortgage servicing rights and related financial hedges.