Sale of Grindlays to Standard Chartered Australia and New Zealand Banking Group Limited 27 April 2000

Announcement key points m Sale price of US$1.3 ($A2.2) billion in cash m In addition, ANZ receives dividends of $US0.5 (A$0.9) billion from Grindlays retained earnings m Sale (excluding dividends) equals 2.3 times book value and 14.2 times annualised first half 2000 earnings m Cooperation Agreement with Standard Chartered to service ANZ customers m Buyback of A$1 billion - one of the largest in Australia m ANZ to focus on growth in Australia, New Zealand and Asia Pacific, with increased emphasis on e-commerce

Strategy - what we said May ‘99 m Re-balance business mix largely organically m Focus on four strategic businesses – accelerate growth in personal – build on strong position in corporate – simplify and focus International on Asia and the Pacific – build leading presence in e-commerce m Transform management process to ensure execution and delivery

Strategic logic m Sale of Grindlays simplifies and focuses international in one move m Strategically attractive for both organisations m Advances strategic repositioning of International – focus on Asia-Pacific m ANZ continues to service core customers – cooperation agreement with Standard Chartered on trade finance, project finance and corporate advisory in Middle East and South Asia – global businesses in FX, capital markets, trade and project finance m Rationale for Standard Chartered – focus on emerging markets - now the leading international bank in the region – synergies and growth opportunities

m Country representations included in the Standard Chartered transaction – Bangladesh, India, Sri Lanka, Nepal, Pakistan, UAE, Qatar, Bahrain, Iran, Jordan, Israel, Greece – Grindlays Private Banking operations in London, Jersey, Switzerland m ANZ ongoing international presence – 23 countries in Asia (11), Pacific (8), Europe (3) and America (1) Transaction outcomes - countries

Key terms m Sale price of US$1.3 (A$2.2) billion comprising – Net Asset Value US$590 (A$990) million – Goodwill US$750 ($A1,250) million m Dividends of $US0.5 (A$0.9) billion from Grindlays retained earnings m Key price multiples (excluding dividend) – 2.3 times net asset value, 14.2 times annualised first half 2000 earnings m Final consideration subject to Net Asset Value at completion m Customary representations and warranties and indemnity regarding litigation matters including NHB m Completion expected by 3Q 2000 subject to regulatory approval m Buyback of A$1 billion - one of the largest in Australia

Turning point for banks? m Pressure to consolidate m Funds Management focus  Unprecedented change driven by new economy real risks for those who don’t change fast new ways of winning ANZ - a relentless focus on value Clear direction for ANZ m Core business portfolio repositioned, now strong m Disciplined management value orientated radical transformation to release and build value capital management m Renewed focus on growth and new economy

Appendix: Financial details m Customers/Clients 870,000 m Employees 5,400 m Branches (inc. Grindlays Private Bank) 114 m NPATYear ended 30 September 1999A$149 million Half Year ended 31 March 2000A$79 million m Assets*Total External AssetsA$10 billion Risk WeightedAssetsA$8 billion * As at 31 March 2000

Summary m Good outcome for shareholders m Generates immediate value m Simplifies and focuses international in one move m “Win-Win” for both companies