ASX Announcement - National Provides Update on European Review - 14 October 2004

The National Australia Bank is committed to developing its businesses in Europe and is implementing a range of initiatives to improve shareholder value.

However, as previously announced, the National's Chief Executive, Mr John Stewart, said all options are being considered as part of a wide-ranging review.

Mr Stewart said several expressions of interest in our Irish businesses have been received.

"The Irish businesses are excellent businesses with great potential," he said.  "No decision has been made to sell them.

"However, given these expressions of interest, we believe it is in shareholders' interests to explore this option.

"As such, we have commissioned Lazard's to issue an information memorandum and test the market.

"If we do not receive an offer that reflects the true value and potential of the Irish businesses, we will continue to invest in them and to grow them organically."

Mr Stewart said that work continues on the European review and initiatives to improve shareholder value.

"We will continue to focus on growth in our businesses and are confident that they can generate value for the National," he said.

"We are making excellent progress with plans to improve performance and see real opportunity to increase our presence in the south east of England.

"We will provide an update on the European review to the market when it is sufficiently progressed."

For further information:

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

Callum Davidson
Head of Group Investor Relations
03 8641 4964 work
0411 117 984 mobile