National Australia Bank clarifies articles in The Age and Sydney Morning Herald - 26 August 2002

The National Australia Bank strongly rejects the inference by today's Age ("NAB linked to Enron Suit") and Sydney Morning Herald ("NAB loans used in Enron Schemes") that it assisted the management of Enron to manipulate its financial statements.

The facts concerning the National's involvement in the loan syndication, Firefly, are as follows:

• The syndicated loan, "Firefly", was not a NAB deal. It was neither led nor arranged by the National. The arrangers of the funding were J.P. Morgan Chase, BT Alex Brown & Donaldson and Lufkin & Jenrette. 
• The National was a relatively minor member of the loan syndication, providing 4% of the total finance. The National purchased its share from the arrangers.
• The funding was provided on an interim basis to Enron and facilitated its purchase of Elektro Brazil's sixth largest power distributor.
• The loan was approved in February 1999 and was repaid in full.
• No claim or class action has been made against the National in relation to Enron.
• In November 2001, the National fully disclosed its exposure to Enron, totalling $200m.

For further information, please contact

Majella Allen
Group Corporate Affairs
Tel: 613 8641 3857
Mob: 0410 440 305