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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

HOMEX - Melbourne                                                     

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 (
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

"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