ASX Announcement - National's Employee Incentive Scheme - 28 January 2004

The National is issuing the following statement to the Australian Stock Exchange to clarify issues raised at an open analyst briefing earlier today about the pricing of its EVA share offer, 'at risk" shares, options and performance rights for staff.

As planned, the National will shortly lodge an Appendix 3B New issue announcement, application for quotation of additional securities and agreement with the Australian Securities Exchange. This application will include the listing of additional EVA shares and 'At Risk' shares allotted to staff on Friday 16 January 2004.

The pricing period for such employee incentives was set last year and was conducted during the week ended 16 January 2004. The issue price was $30.25 per share.

Such allotments did not include the allotment of shares or the granting of options or performance rights to the two Executive Directors or any operational and risk management staff associated with the unauthorised foreign currency options trading. To avoid any potential conflict, the Board has deferred such allotments and grants pending the outcome of its independent investigation.

For further information:

Robert Hadler
General Manager
Group Corporate Affairs
03 8641 3876 work
0404 805 675 mobile

Brandon Phillips
Group Manager
Group Corporate Relations
03 8641 3857 work
0419 369 058 mobile