GOODMAN GROUP — Capital/Financing Update 2006

Aug 23, 2006

No.1 Martin Place Sydney NSW 2000
GPO Box 4294
Sydney NSW 1164 Telephone (61-2) 8232-3333
Economia (61-3) 8232-7780 (61 2) 8232 7780 Facsimile Internet http://www.macquarie.com.au
DX 10287 SSE SWIFT MACQAU2S

Treasury 8232 3600 Facsimile 8232 4227 Foreign Exchange 8232 3666 Facsimile 8232 3019 Poleign Exchange 6232 300 Pacsimile 6232 3019
Metals and Energy Capital 8232 3444 Facsimile 8232 3590
Futures 8232 7580 Facsimile 8232 4442
Debt Markets 8232 8569 Facsimile 8232 8341
Agricultural Commodities 8232 7672 Facs

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS

ASX/Media Release

Sale of Holding in Macquarie Goodman Group

24 August 2006 - Macquarie Bank Limited (MBL) today announced it sold overnight its holding of approximately 7.7% (approximately 124 million securities) as principal in the Macquarie Goodman Group (MGQ), via a selldown to a range of institutional investors at a price of \$5.90 per security. Total proceeds of the sale are approximately \$733 million. The Macquarie Bank Group continues to have an interest in MGQ via its funds management businesses.

Macquarie Bank will realise a pre-tax, pre-profit share gain of approximately A\$300 million and a net profit (post tax and profit share) of approximately \$A90 million. The net impact of the transaction on MBL's Tier 1 capital ratio is not material.

Macquarie Bank Chief Financial Officer, Mr Greg Ward, said: "The selldown does not change our view of MGQ's fundamentals and growth potential and we expect to continue a strong and cooperative relationship with Macquarie Goodman Group through our 50:50 funds management joint venture in Asia, Macquarie Goodman Asia (MGA). However, it is important for MBL to focus its capital on initiatives where it has appropriate brand and management leverage. The selldown was strongly supported by investors."

The sale is in line with the Bank's stated aims of realizing some of its significant investments and re-cycling that capital into other growth initiatives. MBL intends to commit up to \$100 million from the proceeds of the sale to reinvestment into MGA

Macquarie Bank Limited

for both the warehousing of assets and as cornerstone investments in new funds management opportunities.

The sale does not imply any change in the Bank's general approach to holding investments in Macquarie managed funds.

Macquarie Securities (Australia) Limited acted as sole lead manager in the selldown.

For further information, please contact:

Matthew Russell, Public Relations Macquarie Bank	Tel: +612 8232 4102
Jenny Kovacs, Investor Relations Macquarie Bank	Tel: +612 8232 3250

THIS RELEASE DOES NOT CONSTITUTE AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES. SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES UNLESS THEY ARE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE.