National Australia Bank Statement on Allco Principals Investments Pty Ltd

Thursday March 6, 2008

Following previous announcements in relation to Allco Principals Investments Pty Ltd, National Australia Bank advises the following:

• As previously advised, NAB has provided a margin loan facility of approximately $110 million to Allco Principals Investments secured by shares in Allco Finance Group Ltd.
• No shares have been sold under this facility and NAB has been seeking to complete a Standstill Agreement with Allco Principals Investments based on a Heads of Agreement signed by Allco Principals Investments undertaking, amongst other things, to provide additional security.
• Allco Principals Investments has now advised that it will not provide the additional security or meet other requirements sought by NAB and consequently the Standstill Agreement cannot be resolved to NAB’s satisfaction. NAB has now exercised its rights under its security and appointed Paul Billingham of Grant Thornton as agent for the mortgagee in possession of the shares (specifically 34,482,275 shares in Allco Finance Group Ltd and 4,091,716 shares in Allco HIT Ltd).
• In light of the deterioration in the value of the Allco Finance Group securities and the refusal to provide additional security per the Heads of Agreement that has led to this appointment, NAB is assessing an appropriate provision to be included in the half yearly results.
• NAB will pursue all avenues of recovery against Allco Principals Investments and related parties to mitigate its loss.
• NAB will work with relevant stakeholders to maximise the value of these shares.

For further information:

Media
Brandon Phillips
M: +61 (0) 419 369 058

Investor Relations
Hany Messieh
M: +61 (0)414 446 876

Media
Kerrina Lawrence
M: +61 (0) 417 034 738