ETR: Finalises ANZ`s second milestone share issue

Document date:  Wed 01 Nov 2000
Published:  Wed 01 Nov 2000 17:22:20
Document No:  222035
Document part:  A
Market Flag:  N
Classification:  Appendix 3B 

ETRADE AUSTRALIA LIMITED                      2000-11-01  ASX-SIGNAL-G

HOMEX - Sydney                                                        

+++++++++++++++++++++++++
                             APPENDIX 3B
                        NEW ISSUE ANNOUNCEMENT

   APPLICATION FOR QUOTATION OF ADDITIONAL SECURITIES AND AGREEMENT

Information or documents not available now must be given to ASX as
soon as available.  Information and documents given to ASX become
ASX's property and may be made public.

Introduced 1/7/96. Origin Appendix 5. Amended 1/7/98, 1/9/99,
1/7/2000.

Name of Entity
ETRADE Australia Limited

ACN or ARBN
003 042 082

We (the entity) give ASX the following information.


PART 1 - ALL ISSUES
You must complete the relevant sections (attach sheets if
there is not enough space).


1. Class of securities issued          Ordinary Shares
   or to be issued                                                  
 
2. Number of securities issued         668,122
   or to be issued (if known)                                       
   or maximum number which                                          
   may be issued                                                    

3. Principal terms of the securities   -
   (eg, if options, exercise price                                  
   and expiry date; if partly paid                                  
   securities, the amount                                           
   outstanding and due dates for                                    
   payment; if convertible securities,                              
   the conversion price and dates                                   
   for conversion)                                                  

4. Do the securities rank equally      The shares will rank equally
   in all respects from the date       with all other shares in
   of allotment with an existing       the capital of ETR.
   class of quoted securities                                       

   If the additional securities                                     
   do not rank equally, please                                      
   state:                                                           
   * the date from which they do                                    
   * the extent to which they                                       
     participate for the next                                       
     dividend, (in the case of                                      
     a trust, distribution) or                                      
     interest payment                                               
   * the extent to which they do                                    
     not rank equally, other than                                   
     in relation to the next                                        
     dividend, distribution or                                      
     interest payment                                               

5. Issue price or consideration        Not for cash consideration

6. Purpose of the issue (if            The shares have been issued
   issued as consideration for         in accordance with the
   the acquisition of assets,          Subscripton and Alliance Deed
   clearly identify those              between Australia and New
   assets)                             Zealand Banking Group Limited,
                                       ETRADE Australia Limited and
                                       ETRADE Australia Securities
                                       Limited, dated 17/09/1999 and
                                       approved by Shareholders in
                                       August 1999.
                                                                    
                                       The shares represent
                                       consideration for ANZ marketing
                                       and promoting the co-branded
                                       share trading and investment
                                       service of E*TRADE Australia
                                       as a preferred product with its
                                       customer base.
                                                                    
                                       This issue represents
                                       finalisation of the milestone
                                       shares for the second milestone
                                       period from 31 March 2000 to
                                       29 September 2000.

7. Dates of entering securities        01/11/2000
   into uncertified holdings                                        
   or despatch of certificates                                      
                                       
                                      NUMBER  CLASS
8. Number and class of all        68,265,563  Ordinary shares
   securities quoted on                                             
   ASX (including the                                               
   securities in clause                                             
   2 if applicable)                                                 

                                    NUMBER  CLASS
9. Number and class of all         250,000  Options exercisable at
   securities not quoted                    $0.95 expiring 31/12/2000
   on ASX (including the           500,000  Options exercisable at
   securities in clause 2                   $1.15 expiring 31/12/2000
   if applicable)                   33,330  Options exercisable at
                                            $0.93 expiring 15/12/2002
                                    25,000  Options exercisable at
                                            $0.91 expiring 27/01/2003
                                    50,000  Options exercisable at
                                            $0.83 expiring 27/05/2003
                                   125,000  Options exercisable at
                                            $0.74 expiring 10/09/2003
                                   159,000  Options exercisable at
                                            $1.94 expiring 12/02/2004
                                   132,000  Options exercisable at
                                            $5.427 expiring 09/09/2004
                                    20,000  Options exercisable at
                                            $5.295 expiring 06/09/2005
                                   450,000  Options exercisable at
                                            $3.77 expiring 12/01/2005
                                   159,000  Options exercisable at
                                            $3.149 expiring 24/02/2005
                                    30,000  Options exercisable at
                                            $6.13 expiring 06/07/2004
                                 4,000,000  Options exercisable at
                                            $6.327 expiring 30/09/2003

10.Dividend policy (in the case        -
   of a trust, distribution                                         
   policy) on the increased                                         
   capital (interests)                                              

PART 2 - BONUS ISSUE OR PRO RATA ISSUE

Items 11 to 33 are Not Applicable

PART 3 - QUOTATION OF SECURITIES
You need only complete this section if you are applying for quotation
of securities

     
34. Type of securities (tick one)

    (a) X  Securities described in Part 1

    (b)    All other securities

Example: restricted securities at the end of the escrowed period, 
partly paid securities that become fully paid, employee incentive 
share securities when restriction ends, securities issued on expiry
or conversion of convertible securities

    Entities that have Ticked Box 34(a)

    Additional Securities Forming a New Class of Securities
    (If the additional securities do not form a new class, go to 43)

    Tick to indicate you are providing the information or documents

35.    The names of the 20 largest holders of the additional 
         securities, and the number and percentage of 
         additional securities held by those holders

36.    A distribution schedule of the additional securities 
         setting out the number of holders in the categories
         1 - 1,000
         1,001 - 5,000
         5,001 - 10,000
         10,001 - 100,000
         100,001 - and over

37.    A copy of any trust deed for the additional securities
(now go to 43)

    Entities that have Ticked Box 34 (b)

    Items 38 to 42 are Not Applicable

ALL ENTITIES

Fees

43. Payment method (tick one)

       Cheque attached

       Electronic payment made
       Note: Payment may be made electronically if Appendix 3B is 
             given to ASX electronically at the same time.
    
    X  Periodic payment as agreed with the home branch has been 
       arranged
       Note: Arrangements can be made for employee incentive 
             schemes that involve frequent issues of securities.

QUOTATION AGREEMENT

1.  Quotation of our additional securities is in ASX's absolute 
    discretion. ASX may quote the securities on any conditions it 
    decides.

2.  We warrant to ASX that the issue of the securities to be quoted
    complies with the law and is not for an illegal purpose, and that
    there is no reason why those securities should not be granted
    quotation. We warrant to ASX that an offer of the securities for
    sale within 12 months after their issue will not require
    disclosure under section 707(3) of the Corporations Law.

3.  We will indemnify ASX to the fullest extent permitted by law in
    respect of any claim, action or expense arising from or connected
    with any breach of the warranties in this agreement.

4.  We give ASX the information and documents required by this form.
    If any information or document not available now, will give it to
    ASX before quotation of the securities begins. We acknowledge that
    ASX is relying on the information and documents. We warrant that
    they are (will be) true and complete.


M Zworestine 
COMPANY SECRETARY
01/12/2000