HomeSide Class Action - 5 September 2003

On August 29, 2003, a civil class action complaint was filed in the United States District Court (Southern District of New York) against the National Australia Bank Limited and others for alleged violations of federal securities laws relating primarily to disclosure concerning the valuation of the mortgage servicing rights held by HomeSide Lending, Inc. (which we sold in October 2002).  The complaint fails to specify any quantum of damages, but seeks unspecified compensatory damages.

Based on preliminary legal advice we have received in relation to the matter, we believe that the action is without merit, should not succeed and is not likely to have a material adverse effect on our consolidated financial position.  We intend to defend the action vigorously.