RNS Number:0057M
National Australia Bank Ld
06 June 2003


                                                Group Corporate Affairs

                                                National Australia
                                                Bank Limited
                                                ABN 12004044937


                                                500 Bourke Street
Media Release                                   Melbourne
                                                Victoria  3000
                                                Australia




                                                Melbourne, Friday 6th June  2003


National to acquire Commonwealth Bank custody contracts


National Australia Bank today announced it has signed an agreement to acquire
the custody contracts of clients of Commonwealth Custodial Services Limited
(CCSL) and the Commonwealth Bank of Australia by way of novation, subject to the
approval of clients.


Under the arrangement, the National will provide custody and related services to
clients of Commonwealth/CCSL.


The contracts represent approximately $30 billion in assets under custody and
administration.  The acquisition furthers the National's position as a leading
custodian in Australia with $235 billion in assets under custody and
administration.


Ian Scholes, Executive General Manager, Corporate & Institutional Banking at the
National, said: "The client business to be acquired from Commonwealth/CCSL will
complement the profile of the National's existing custody business, National
Custodian Services (NCS).  NCS already services clients that include super
funds, financial services companies and government and statutory authorities.


"We are excited about the opportunity to work with new clients and grow the
business.


"The economies of scale we currently enjoy at NCS make this an attractive
opportunity and a good fit with our broader Corporate and Institutional Banking
business," Mr Scholes said.


General Manager, National Custodian Services, Tony O'Grady, said the National
aimed to manage the transition of clients as smoothly as possible.


"A dedicated transition team has been established to work closely with
Commonwealth/CCSL and clients. This process will be completed before the end of
the year," he added.


The agreement between the National and Commonwealth/ CCSL does not involve the
transfer of any business operations or legal entity.


New staff will be required to service the additional clients and the National
will look to take on as many existing Commonwealth employees as is practical.



Further information, please contact:



Andy McConville                         Tony O'Grady
Corporate Affairs                       National Custodian Services
+61 3 8641 2770                         +61 3 9659 6561
+61 405 171 741                         +61 401 712 710




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