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ANZ Stapled Exchangeable Preferred Securities (ANZ StEPS) to be Exchanged for Ordinary Shares

ANZ today announced it would write to ANZ StEPS holders to formally notify them of ANZ’s decision to Exchange all ANZ StEPS by way of Conversion into ANZ ordinary shares at a 2.5% discount. 

On 15 September 2008 ANZ will issue each holder of ANZ StEPS with ANZ ordinary shares. The number of ANZ ordinary shares to be issued will be calculated in accordance with the formula set out in the ANZ StEPS Prospectus. The formula is based on the average of the daily volume weighted average sale prices of ANZ ordinary shares (VWAP) in the 20 business day period commencing 18 August 2008. Broadly, the number of ANZ ordinary shares holders will receive for each ANZ StEPS (which have a Face Value of $100 each) will be equal to approximately $102.56 (this includes the 2.5% discount ANZ StEPS holders are entitled to) divided by the VWAP.


The VWAP may differ from the actual price of ANZ ordinary shares at the time of Conversion on 15 September 2008. Accordingly the value of ANZ ordinary shares issued to holders of ANZ StEPS at the time of Conversion may be more or less than the Face Value of holders' ANZ StEPS.


Investors who wish to reduce their exposure to movements in the ANZ ordinary share price may consider selling their ANZ StEPS on the ASX prior to the commencement of the VWAP pricing period on 18 August 2008. Following this date ANZ expects that the VWAP pricing mechanism may begin to affect the trading price of ANZ StEPS.If you are unsure how to deal with your ANZ StEPS, ANZ recommends that you contact your stockbroker, accountant or financial advisor.


ANZ StEPS may be traded until 4.00 pm (Melbourne time) on Friday 5 September 2008. ANZ StEPS will no longer be quoted on the ASX after this time. In this respect, ANZ waives the requirement that any holders who have given ANZ a Holder Exchange Notice may not deal with, transfer, dispose of or otherwise encumber their ANZ StEPS.


Notwithstanding the Exchange of ANZ StEPS that will take place on 15 September 2008, the next quarterly distribution on ANZ StEPS remains payable to all applicable ANZ StEPS holders. The record date for this distribution is 29 August 2008 and the payment is scheduled to be made on 15 September 2008. 


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