National Australia Bank hybrid Tier 1 capital issue

Further to an announcement on 7 September 2006, National Australia Bank today announced
an issue of A$400 million hybrid Tier 1 National Capital Instruments (“NCIs”).

The securities carry a floating distribution at a rate of 0.95% over 3 month BBSW, accumulating
from 18 September 2006 to and including 30 September 2016 (the “Step-Up Date”), and at a
rate of 1.95% over 3 month BBSW after the Step-Up Date. The perpetual securities are callable
by the National on the occurrence of certain events, on the Step-Up Date and on any
distribution payment date on the NCIs thereafter, subject to the prior approval of APRA.

National Australia Bank Finance Director, Michael Ullmer, said that the deal was supported by a
large number of Australian institutional investors. This issue of Tier 1 securities provides the
National with capital flexibility, and reinforces its relationships with this important investor base.

This issue of hybrid Tier 1 capital is consistent with the National’s objective of efficient capital
management and is part of National’s ongoing capital management strategy. The proceeds
from the Tier 1 issue will be used for general business purposes.

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

_{This statement does not constitute an offer of any securities for sale. The securities offered will not be registered
under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements.}