MBL Restructure to MQG

Hi I am interested in having the information about MBL’s decision to restructure the Macquarie Group into NOHC owning separate banking and non-banking groups?

[Rajkumar Agarwal]

MBL declared in July 2006 its expectation to rebuild the Macquarie Group into NOHC owning separate banking and non-banking groups. The foundation of the NOHC is planned to bolster proceeded with development over the Group's organizations, especially universally, while meeting the prerequisites of the Australian Prudential Regulation Authority (APRA).

The Explanatory Memorandum, which is expected to be sent to MBL shareholders and optionholders late in September 2007, points of interest the proposed Restructure of Macquarie and how it will give more prominent adaptability to Macquarie to adjust to future business, showcase and administrative improvements.

The Restructure is proposed to be affected by plans of game plan to be considered by the Bank's shareholders and optionholders at gatherings on 25 October 2007.

Under the plans of game plan, shareholders and optionholders would trade their shares and choices in MBL for shares and alternatives in the new MGL, which will be cited on ASX under the code MQG.

Under the proposed Restructure:

Every share and every choice in MBL will be traded for one share and one alternative, separately, in MGL

The Banking Group will keep on being liable to the full scope of APRA control as an approved store taking foundation.

MGL will be approved as a NOHC and will be a directed element for APRA purposes.

Macquarie's solid accentuation on hazard administration would keep on applying all through the Group.

There will be no real change to gathering technique or key administration thus of the Restructure.

The Restructure is not anticipated that would bring about any material change to profit strategy, with the yearly payout proportion anticipated that would stay in the scope of 50 to 60% of net income.

There won't be an assessable occasion for most shareholders and optionholders.

The Macquarie Group's current cross breed securities, the Macquarie Income Securities (MIS) and the Macquarie Income Preferred Securities will stay on issue. MBL will stay recorded on ASX to bolster the proceeded with citation of the MIS.

One-off expenses connected with the Restructure are not thought to be material nor are the extra continuous expenses. Points of interest of costs connected with the Restructure are contained in the Explanatory Memorandum.