ASX Announcement - NAB Sells Asian Life Insurance Businesses to AXA Asia Pacific - 21 February 2006

National Australia Bank Limited (NAB) today announced it has agreed to sell its MLC life insurance businesses in Hong Kong and Indonesia to AXA Asia Pacific Holdings for A$575 million.  The impact on the Group profit and loss is not expected to be material.

National Australia Bank Managing Director and Group Chief Executive, John Stewart, said the sale of the life insurance businesses in Hong Kong and Indonesia is part of the on-going business portfolio review.

"These are good businesses and AXA Asia Pacific is in a strong position to develop them.  The sale is therefore a sensible decision for both NAB and AXA Asia Pacific," Mr Stewart said.

"We want to focus on areas where we have core capabilities and can create sustainable shareholder value.

"The sale allows us to consolidate our banking and wealth management services in Asia.

"NAB will continue to develop the financial services businesses in Hong Kong, Singapore and Japan based on premium banking, wealth management and corporate banking.

"This sale has no bearing on our MLC wealth management business in Australia."

The sale is subject to regulatory approvals.  The proceeds will be utilised as part of the NAB's total capital management program.

Employees of MLC Hong Kong and MLC Indonesia will transfer with the sale.

For further information:

Brandon Phillips
Group Manager, External Relations
T  03 8641 3857
M  0419 369 058

Hany Messieh
Head of Investor Relations
T  03 8641 2312
M  0414 446 876

Geoff Lynch
Head of Media Relations
T  03 8634 1564
M  0405 319 819