ASX Announcement - Shares Issued as Exchangeable Capital Units are Converted - 22 November 2005

National Australia Bank (NAB) has issued approximately 23.5 million shares in recent days following the conversion of approximately 14.36 million Exchangeable Capital Units (ExCaps).

US$1 billion of ExCaps (40 million units) were issued in the United States and Europe in March 1997 as part of the National's capital management program.  The ExCaps can be converted by investors into NAB ordinary shares (or at NAB's option, cash) at any time at a conversion rate of 1 unit equals 1.6365 shares.

A notice providing additional details of the shares issued in recent days has been filed with the Australian Securities Exchange today.  Since the ExCaps were launched a total of approximately 18 million units have been converted into NAB ordinary shares by investors.

National Australia Bank has the right to redeem the ExCaps at the issue price of US$25 in March 2007 but based on the current ExCaps and NAB market prices, investors in the ExCaps may continue to convert their holdings prior to that date.

National Australia Bank Director, Finance and Risk, Michael Ullmer said no decision would be taken on any capital management initiatives until a number of other capital issues had been resolved.

"We continue to work with APRA to address the requirements for a return to the internal model for calculating our market risk-weighted assets and we are still completing the final work associated with the new international accounting standards," he said.

For further information:

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

Hany Messieh
Group Manager, Investor Relations
03 8641 2312 work
0414 446 876 mobile