SUNCORP GROUP LIMITED — Capital/Financing Update 2008

Oct 13, 2008

14 October 2008

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SUNCORP UPDATE

Suncorp said today it had concluded discussions with parties interested in acquiring its banking and wealth management assets.

The discussions concluded in light of the changed circumstances for the Australian financial services sector brought about by recent international credit and equity market volatility and the Australian Government’s banking guarantee initiatives announced on Sunday 12 October.

Suncorp chairman John Story said: “The process that was commenced reflected the Board’s responsibility to ensure the strong expressions of interest that had been received were given proper consideration.”

“However, given the events of the past week in particular, we have determined that this process was unlikely to result in offers reflecting the operational or strategic value of the Suncorp banking and wealth management businesses.”

“We have taken the view that the market needs time to take account of the initiatives put in place by the Australian Government and other national governments to rebuild confidence in the global financial system.”

“The Board is willing to re-engage with those parties who have, in the past, expressed strong strategic interest in these assets and is open to proposals that are realistic and offer fair value to our shareholders,” Mr Story said.

Chief executive John Mulcahy said: “Suncorp continues to conduct its business in a manner that is consistent with the changed economic circumstances and underlying business performance has been strong so far this financial year.”

ENDS

For more information contact:

Analysts / Investors

Karen Cush – 07 3836 1960 Mark Ley – 07 3835 5639

Media

Jamin Smith – 07 3835 5183 Ron Burke – 03 9245 8263

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