CSL Ltd. — Capital/Financing Update 2003

May 14, 2003

ASX ANNOUNCEMENT

15 May 2003

CSL TRADING UPDATE

CSL Limited advised today that its second-half performance will be affected by difficult trading conditions in the United States and adverse foreign currency exchange movements.

As part of the company's interim result announcement, including an EBITDA result of \$132 million, CSL advised that the anticipated underlying trading performance for the Group was likely to reflect an EBITDA split of approximately 45 percent/55 percent for the full year.

As a result of continuing adverse movement in exchange rates, and a very competitive market for plasma products including soft prices for albumin, EBITDA for the year 2002-2003 is more likely to be in the range of \$250 - 260 million. The EBITDA impact of adverse currency movements when compared to the actual exchange rate of the previous financial year is forecast to be approximately \$48 million for the financial year.

Due to the lower effective tax rate in Switzerland and the recent strengthening of the Australian dollar, the profit after tax impact of this currency movement, year on year, is estimated to be in the order of \$40 million. The effective tax rate for the full year will be in the order of 32 percent.

Although CSL's ZLB operations have been significantly impacted by these negative movements, the trading operations of the company's other businesses were performing well especially JRH Biosciences which was continuing to perform above expectations.

The full year final profit result, however, is still dependent on acceptance of premium pricing for ZLB's nanofiltered IVIG in the US, a satisfactory trading outcome on sales of the Company's influenza vaccine, and currency exchange rates stabilising.

For further information, please contact:

Mr Pat Hinton Hinton & Associates $\rm Phr$ $+61396001979$