ASX Announcement - Board Changes at the National - 12 March 2004

The National's Chairman, Mr Graham Kraehe, today announced changes to Board Committees and the appointment of a Senior Independent Director.

Mr Kraehe said the changes followed a review of Board structures and membership since he was appointed Chairman.

"Directors have decided that Mr Peter Duncan should replace me as Chairman of the Board Risk Committee and that Mr John Thorn should replace Mrs Catherine Walter as Chairman of the Audit Committee," he said.

"Mr Duncan, who has been on the Board for two years, has extensive international experience in finance and general management. Mr Thorn, who was appointed to the Board six months ago, has significant international accounting, auditing and management experience.

"Mrs Walter, who has been on the Board for eight years, and a member of the Audit Committee for the last six years, the last three as Chairman, will leave the Audit Committee."

"In due course, new Directors with banking experience will also be appointed to the Audit Committee and the Risk Committee."

Mr Kraehe said Dr Ken Moss, who has been on the Board for four years, had also been appointed as the Senior Independent Director in line with the best practice corporate governance model in the United Kingdom.

He said that the Board would also enhance existing governance processes including the annual review of Board performance and the review of individual Directors prior to their standing for re-election at the Annual General Meeting.

For further information:

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