RNS Number:8042R
National Australia Bank Ld
07 November 2003


                                                                                            Group Corporate
                                                                                            Affairs

                                                                                            National Australia
                                                                                            Bank Limited
                                                                                            ABN 12004044937

                                                                                            500 Bourke Street
            ASX Announcement                                                                Melbourne
                                                                                            Victoria  3000
                                                                                            Australia


                                                                                Melbourne, Friday 7th November  2003

National comments on AMP's proposed de-merger

The National has reviewed AMP's Explanatory Memorandum and is now in a position
to respond to inquiries from shareholders, broking analysts and the media about 
AMP's proposed de-merger, National Chief Executive and Managing Director, Mr 
Cicutto said yesterday.

Mr Cicutto said AMP's proposed de-merger does not deliver a clean separation of
its Australian and UK businesses because AMP will retain 15 per cent ownership 
of HHG plc.

"This de-merger proposal is different from the one announced by AMP in May", Mr
Cicutto said. "In our view, there is no clear justification for a de-merger 
which retains significant linkages between its Australian and UK businesses.

"It is unclear what potential financial, regulatory and reputation risks and
other obligations AMP may face as a result of its continuing exposure to the UK. 
Further, AMP may be required to increase its shareholding in HHG plc as
a consequence of the proposed #100 million convertible loan note standby
commitment."

Mr Cicutto said the National has always supported a clean de-merger. In the
absence of a clean de-merger, the National will reluctantly support the proposed 
de-merger, and will consider participation in the rights issue to prevent 
dilution of its strategic stake in the company.

"We are cautious and disciplined," Mr Cicutto said. "We have demonstrated
previously that we are prepared to hold a strategic position for some time."


For further information, please contact:


Brandon Phillips
Group Corporate Affairs
03 8641 3857
0419 369 058

or visit www.nabgroup.com


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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