ASX Announcement - National to Raise Capital - 12 May 2004

The National Australia Bank confirms that it will conduct a subordinated debt raising of approximately A$2 billion as part of its annual debt raising program.

The National has also entered into agreements to fully underwrite its Dividend Reinvestment Plan in respect of the March 2004 interim dividend at a value of approximately A$1.2 billion.

In respect of the March 2004 interim dividend only, the Dividend Reinvestment Plan will be amended to remove the 15,000 share cap and a 2.5% discount will be introduced for shareholders participating in the plan.

For further information:

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