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Strategic alliance with E*Trade

Document date:  Thu 17 Jun 1999
Published:  Thu 17 Jun 1999 00:00:00
Document No:  149321
Document part:  A
Market Flag:  Y
Classification: 

HOMEX - Melbourne                                                     

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ANZ and E*TRADE Australia today announced the formation of a
strategic alliance to develop Australia's leading on-line share
trading and investment service.

Part of ANZ's strategy to build a leading position in e-commerce, the
strategic alliance will involve ANZ and E*TRADE Australia offering
on-line share trading services to ANZ's 4 million customers in
Australia and New Zealand.

Under an exclusive arrangement, ANZ and E*TRADE Australia will
establish a co-branded on-line share trading service to be managed
by E*TRADE Australia. The ANZ-E*TRADE co-branded service will be
accessible from ANZ's Internet site, and ANZ will become the
preferred supplier of banking products and other financial services
to E*TRADE Australia customers.

E*TRADE Australia will issue ANZ with shares based on the share of
E*TRADE Australia's trade volume generated by ANZ customers. E*TRADE
Australia will initially issue ANZ with six million shares,
equivalent to 10% of its enlarged capital. Further equity, up to a
maximum of 40% of E*TRADE Australia's fully diluted share capital,
will be issued to ANZ based on the share of E*TRADE Australia's
trade, volume generated by ANZ customers.

ANZ will also be granted options to purchase a further 4 million
shares in E*TRADE Australia and will have representation on the Board
of E*TRADE Australia.

ANZ Head of Personal Financial Services, Mr Peter Hawkins, said the
alliance with E*TRADE Australia was a significant step in developing
ANZ's e-commerce capability.

"The relationship with E*TRADE Australia aligns ANZ with a leading
global brand in on-line trading and Australia's only fully automated
order processing system," he said.

"E-commerce is redefining financial services and alliances with
leading e-commerce companies such as E*TRADE Australia, are an
important element in creating the financial services company of the
future at ANZ," Mr Hawkins said.

ANZ has already registered 25,000 Internet Banking (www.anz.com)
users following the product's launch in April 1999. In addition,
ANZ's on-line sales of financial services including home and personal
loans, credit cards and small business services have been growing at
40% per month during 1999. 

"The introduction of a co-branded on-line share trading service
provides further choice for our customers who have already
demonstrated they are rapid adopters of new technology," Mr Hawkins
said.

"In the coming months, ANZ will make a substantial investment in
marketing e-commerce services, including the ANZ-E*TRADE co-branded
offering, to ensure ANZ is successful in capturing an increasing
share of on-line business.

"E*TRADE Australia's market position and technology makes it an
outstanding partner, and we are delighted to establish a long term
partnership and to already have the support of its Board and major
shareholders," he said.

E*TRADE Australia was launched in April 1998 and mirrors the
successful business model developed by E*TRADE Group Inc, in the
United States. In December 1998 E*TRADE Australia became the first,
and remains the only, on-line share trading service to offer fully
automated order processing providing clients with greater control and
faster access to the market via a secure and easy-to-use environment.
E*TRADE Australia currently has over 18,000 customer accounts.

Terms of the ANZ-E*TRADE strategic alliance will be subject to
E*TRADE Australia shareholder approval at the company's forthcoming
General Meeting, following the completion of due diligence by ANZ.

The ANZ-E*TRADE co-branded on-line share trading and investment
service is expected to be launched in August 1999.

For media enquiries, contact:

Paul Edwards
HEAD OF GROUP MEDIA RELATIONS

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