ASX Announcement - Statement by Seven Non-Executive Directors of the National - 5 May 2004

The following statement has been issued today by seven non-executive Directors of the National.

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MEDIA STATEMENT BY SEVEN DIRECTORS OF NATIONAL AUSTRALIA BANK

The Chairman of National Australia Bank Limited, Mr Graham Kraehe, today announced further details of the Board renewal programme.

"As previously foreshadowed, directors are committed to a continuing process of Board renewal on an orderly basis.  With the appointment of Mr Malcolm Williamson and the search for Australian based non-executive Directors well advanced, we are now able to bring forward the Board renewal programme," he said.

"Ken Moss and Ed Tweddell have decided that they will retire as Directors following the appointment of two new non-executive Directors.  This is expected to be within three months.

"The interests of the National and its stakeholders have been paramount in our consideration as to the most appropriate Board renewal programme.  I would like to commend Messrs Moss and Tweddell for setting aside their own personal interests in an effort to minimise further damage to the National and its shareholders and to thank them for their contribution during their term of office.

"As previously announced it would be my intention to remain Chairman until the Board reconstruction is complete, and to retire at a time which is consistent with the National's best interest but not later than mid 2005.

"Clearly, my principal focus will be on managing my succession and ensuring that the best possible candidate is appointed as the new Chairman, and on ensuring the CEO John Stewart and his management team have a stable, cohesive and effective Board to support their change programme and continued focus on improving financial performance and maximising shareholder returns.

"The changes outlined above will in my view ensure that going forward, the management and Board have the full support of shareholders to implement the programme necessary to build shareholder value and restore the National's reputation.

"I hope to be able to announce to the market shortly the appointment of two new non-executive Directors."