Macquarie Group Limited — Capital/Financing Update 2008

Mar 4, 2008

Macquarie Group Limited ABN 94 122 169 279

No.1 Martin Place Sydney NSW 2000 GPO Box 4294 Sydney NSW 1164

Telephone (61 2) 8232 3333 Facsimile (61 2) 8232 7780 Telex 122246 Internet http://www.macquarie.com.au DX 10287 SSE SWIFT MACQAU2S

Treasury 8232 3600 Facsimile 8232 4227 Foreign Exchange 8232 3666 Facsimile 8232 3019 Metals and Mining 8232 3444 Facsimile 8232 3590 Futures 9231 1028 Telex 72263 Debt Markets 8232 8569 Facsimile 8232 8341 Agricultural Commodities 8232 7672 Facsimile 8232 3633

ASX Release

Macquarie Securitisation to wind-back its Australian residential mortgage origination services

==> picture [66 x 71] intentionally omitted <==

SYDNEY, 5 March 2008 – Macquarie Bank Limited today announced that Macquarie Securitisation Ltd would wind-back its Australian residential mortgage origination services for both retail and wholesale customers due to the significant increase in the cost of funding mortgages and current conditions in the global mortgage securitisation market.

The Head of Macquarie’s Banking and Financial Services Group, Peter Maher, said that from 7 March 2008 the Bank would substantially reduce origination of new residential mortgages in Australia but would continue to provide full service to Macquarie’s existing Australian customers who hold 95,000 loan facilities.

“There will be no impact on these customers and we will continue to provide to them the range of existing customer services including mortgage variation services. It will be business as usual for our existing customer base. New mortgage business will continue to be written although it will be at much reduced volumes,” Mr Maher said.

Mr Maher said Macquarie’s mortgage portfolio comprises approximately 2.5% of the total outstanding housing loans market in Australia.

The portfolio is currently predominantly funded by wholesale securitisation markets. As noted by numerous market participants, deteriorating conditions in these markets over the past six months have resulted in a sharp rise in the cost of funding mortgages and significant reductions in the availability of funding from both the domestic and international mortgage securitisation markets.

Macquarie Group Limited

Macquarie Group Chief Financial Officer, Greg Ward, said: “We have previously advised the market that in full year 2007, the retail and wholesale residential mortgage businesses represented less than one percent of Macquarie Group profits. The impact of the decision to wind-back the business is not financially material.

“We have also previously advised that the mortgages business has no sub-prime exposure, default rates are low and the credit quality of the portfolio is good,” Mr Ward said.

Contacts :

Paula Hannaford, Macquarie Group Corporate Communications +612 8232 4102 Richard Nelson, Macquarie Group Investor Relations +612 8232 5008