MYSTATE LIMITED — AGM Information 2010

Oct 28, 2010

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ASX ANNOUNCEMENT MyState Limited Annual General Meeting Hobart Grand Chancellor 29 October 2010

Address by the Chairman Dr Michael Vertigan AC

As you may recall, some seven months ago we held our 2009 annual general meeting in accordance with the requirements of the Corporations Act.

At that time, while we were only some six months into the merger of MyState Financial and Tasmanian Perpetual Trustees, we were still able to report on the good progress to date and the encouraging half year financial results.

Today, some 13 months into the merger, I am pleased to report that the early positive signs have continued and we are ahead of our expectations. Your Directors remain confident that the rationale upon which the merger was based, and the benefits anticipated, will be fully realised. Particularly pleasing has been the continued loyalty shown by our customers as a result of our commitment to the maintenance of service quality and of our range of products and services.

Our Managing Director, John Gilbert will later talk in more detail about our Company’s full year performance and the progress since merger.

It is two years since the Boards of MyState Financial and Tasmanian Perpetual Trustees announced our merger intentions, with the clear message that the proposed merger would make our two financial institutions “stronger together”. With hindsight, this merger theme now seems somewhat prophetic, for over the following months we would endure and to a degree continue to observe, a global financial crisis that has presented serious challenges to almost every financial institution in the world.

I am pleased to say that the merger of MyState Financial and Tasmanian Perpetual Trustees has resulted in a much larger, more diversified financial Group well positioned to endure such difficult market conditions and effectively compete in today’s financial services industry.

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Your Directors also remain convinced that these same market conditions present strategic opportunities for our Company as we seek to grow shareholder value. With over 200,000 current customers and our significant market share in Tasmania, we need to actively and prudently explore viable growth opportunities further afield, while at the same time continuing to pursue local organic growth. It may be no surprise that our vision is to be a highly successful financial services Group headquartered in Tasmania and operating nationally.

While mindful of the risks and constraints, the creation of MyState Limited as a non-operating holding company structure, gives us capacity to acquire and nurture viable financial services companies in diverse markets. This structure is a definite strategic strength for our business, as is our core expertise and sensitivity to regional markets - advantages which we will seek to exploit in the future, in order to grow your Company.

The progress that we have made in bedding down the merger means that we are now well positioned to consider these growth opportunities – a little earlier than we had anticipated in our original planning.

I must emphasise however that we will not be concentrating all of our effort on extending our reach – we will also be expanding within the Tasmanian market. The strength and capabilities which are now combined within MyState Limited provide us with the ability to offer a more complete product suite to our agribusiness customers and also to develop services to meet the needs of small and medium business enterprises. We will be rolling out these new offerings during the current financial year. In addition we are working to enhance online services to all customers.

In August we announced our full year net profit after tax of $17.341 million, slightly ahead of expectations and just ahead of profit guidance. Consistent with the Board’s policy of generally paying between 70 and 90 percent of profits after tax as dividends to shareholders, our final dividend of 12.5 cents per share, which was paid at the end of last month, resulted in a full year dividend of 22.5 cents per share. This was a very pleasing result in a highly competitive market which is still impacted by the effects of the GFC.

MyState Limited and its subsidiaries operate in a highly regulated market. The GFC has focused much attention on financial sector reform including new global capital and liquidity requirements which will progressively come into play in the Australian market, even though the stability of our

banking system and economic performance is the envy of most other countries. We continue to monitor and participate in the active dialogue around the introduction of these measures.

The Board also remains committed to ensuring that the Company operates under a comprehensive risk and compliance framework, and fully supports the industry regulators in their efforts to raise standards. However, we will continue to encourage the regulators to adopt policies which do not significantly disadvantage smaller financial institutions and which take account of their differing capacity to access capital markets and adjust to the new standards.

The Board seeks to observe the highest standards of corporate governance. An important element of effective corporate governance is planning for board renewal and the Board has initiated consideration of this issue. To assist in this consideration, the Board commissioned an external review of its composition and operations which has been completed.

Following that review and extensive discussion by the Board, it has been unanimously agreed that to meet the requirement in the Constitution that the size of the Board be reduced to eight non-executive directors by the end of the 2011 Annual General Meeting and to provide for a greater diversity of skills and experience on the Board, that four existing Directors will step down from the Board in 2011 and 2012, with at least three of these to occur no later than the 2011 Annual General Meeting. This initiative will also provide the opportunity to address gender diversity on the Board which is an increasingly important governance issue.

The implementation of any merger places significant pressures on Directors and the various Board Committees. I would sincerely like to thank my fellow Directors for their efforts during this recent period – their commitment to the merger and its success has been unwavering.

Finally, I would like to thank the Managing Director, John Gilbert and his Executive team, as well as all employees who have embraced the changes and contributed so much to the success of the business during this last year. It has been a challenging year in which to implement a merger while still effectively dealing with the rapid changes occurring in the financial marketplace.

Thank you.