Thursday, 10 May 2001

National Australia Bank Agribusiness customers to benefit from investment in The Farmshed.

O₂-e Limited, the National Australia Bank's new economy business incubation and acceleration subsidiary, announced today an investment of $10m in Australia's leading rural Internet company, The Farmshed Ventures Pty Limited.

O₂-e will take a $10m stake in The Farmshed, joining existing investors JB Were, McKinsey & Company, Wesfarmers Landmark, Rural Press Limited and Kiwi Co-operative Dairies Limited.

As well as purchasing a 21% equity stake, the National through O2-e has the opportunity to create a module on The Farmshed portal to offer a suite of online business and financial services tailored specifically for the agricultural sector. This will initially include e-procurement and the services provided within the National Business Toolkit.

O₂-e Managing Director Glenn Barnes said the investment was further evidence of the National delivering on its promise that O₂-e will enhance the Group's strategic position through taking a leadership role in the evolution of Internet-based financial services provision.

"This is a strategic investment which further strengthens the National's already strong position in the agricultural sector," Mr Barnes said.

The National's General Manager of Agribusiness Mike Carroll said the investment was further evidence of the bank's commitment to the agricultural sector.

"Farmers have shown a high propensity to access the Internet. The National wants to ensure that we are there to develop the e-commerce services available to farmers on the Internet," Mr Carroll said.

For agribusiness customers it means access to an integrated online offering via The Farmshed.

"The National plans to offer a range of financial services through The Farmshed - some exclusively through this investment," Mr Carroll said.

Mike Pratt, Chief Executive Officer, Australian Financial Services for the National Australia Group and Director, The Farmshed said the deal indicated the bank's strong commitment to e-commerce.

"The Farmshed is a growth investment. It has enjoyed enormous success in its short time in the market and we are confident that with the quality of its backers, The Farmshed is in a strong position to be the leading agribusiness portal," Mr Pratt said.

Farmshed Chief Executive Officer Angus Taylor said the investment by National Australia Bank underlined confidence in The Farmshed's business model and future.

"We have developed an online business model that is sustainable and delivers value through a series of strategic partnerships," Mr Taylor said.

"The support of this icon company shows the confidence it has in The Farmshed's clicks and mortar model that melds new technology with established industrial groups in agriculture to create the only true portal for the agricultural community."

Mr Taylor said The Farmshed had attracted 13,000 members in the six months since it went on line, and was growing at 1,000 members per month. More than 2,000 individual users visit the site each day.

About The Farmshed (www.thefarmshed.com.au)

The Farmshed is Australia's most comprehensive online agricultural portal and currently provides farmers with real time news and weather information, market prices and analysis customized to their particular needs.The Farmshed has attracted 13,000 members in six months since it went on line, and is growing at 1,000 members per month. More than 2,000 individual users visit the site each day.

The Farmshed will become a one-stop-shop for Australian farmers across the full range of agricultural industries, servicing the input sector such as fertilisers, fuels and lubricants, and helping farmers market their outputs.

For further information, please contact:

Dennis Woods
Business Development Manager
Tel: (02) 8303-2502

About O₂-e (www.o2-e.com):

O₂-e Limited was incorporated in June 2000 and is a wholly owned subsidiary of the National Australia Bank Group (the National).

Through O₂-e Limited the National will build new and separate businesses, and business-building capabilities, that will create shareholder value and enhance the group's strategic position. O₂-e Limited will also facilitate the National Australia Bank Group's participation in the Internet driven revolution, and develop a core portfolio of rapid growth businesses delivering significant core earnings growth in the future.

The National will realise this goal by creating new products and entering new markets by pursuing emerging "discontinuous" business opportunities, with the aim of acquiring new customers.

O₂-e Limited targets business investment opportunities within a defined strategic context, and within selected business arenas, rather than on a purely opportunistic basis. O₂-e Limited invests in product innovation, infrastructure and back office applications, to consolidate the "infotailer" and "customer relationship" businesses. These businesses are the primary focus of O₂-e Limited, connecting customers with value-adding information and suppliers of appropriate products and services.

About National Australia Bank (www.nab.com.au)

National Australia Bank Limited is an international financial services group providing a comprehensive and integrated range of financial products and services across four continents and 15 countries. Globally, as at September 30, 2000, the National had (including the operations of Michigan National Corporation and its subsidiaries which were sold to ABN Amro on 1 April 2001):

• Total balance sheet assets of A$344 billion
• Over A$60 billion in assets under management and administration
• A$285 billion in assets under custody and administration
• A mortgage servicing portfolio in excess of A$350 billion
• More than 12 million customers

The National is the largest financial services institution listed on the Australian Stock Exchange and was the 22nd largest financial services company in the world by profitability and 34th by revenues, (Fortune 500, July 2000).

The National has an association with Australian Agriculture that dates back over 150 years. The National is currently the largest lender to Australian Agriculture, with over 320 agribusiness finance specialists in 82 locations across the country.

* The information contained in this media release is for media advice purposes only. The contents are true and correct at time of publishing/issuing, however may change over time. For further information about NAB products or rates, please go to Interest Rates, Fees & Charges