ASX Announcement - NAB Reaches Agreement to Transfer Its UK Discretionary Investment Management Business - 16 January 2006

National Australia Bank Limited today announced that it has reached an agreement to transfer the management of its UK Clydesdale and Yorkshire Bank Discretionary Investment Management portfolios to Tilney Investment Management.

The Clydesdale and Yorkshire Bank Discretionary Investment Management operation has over 1500 customer portfolios with an approximate value of funds under management of £300 million.

Tilney is one of the largest independent wealth managers in the UK, with over 12,000 clients and assets under management in excess of £5 billion.

The sale is expected to be completed prior to June 2006.

Terms of the transaction are commercial in confidence but are not material to National Australia Bank.

For further information in Australia contact:

Brandon Phillips                                         Hany Messieh   
Group Manager, External Relations       Group Manager, Investor Relations
+61 (0) 3 8641 3857 work                        +61 (0) 3 8641 2312 work
+61 (0) 419 369 058 mobile                    +61 (0) 414 446 876 mobile

Kim Lovely
External Relations Manager
+61 (0) 3 8641 4982 work
+61 (0) 406 035 243 mobile

For further information in the UK contact:

Yolande Stratford
UK Media Relations
+44 (0) 207 710 1934 work
+44 (0) 7739 656 980 mobile