1. Markets chartpack March 2007

2. China ‘shock’ The numbers  The Shanghai composite index fell almost 9% on Tuesday 27 th Feb 2007  After a run of record highs, this was the largest one day fall the Chinese index has experienced in 10 years.  The US S&P 500 index fell 3.5% as a result, while Australia’s sharemarket (S&P/ASX 200) fell 2.7%  This was the largest one day fall in the Australian sharemarket since September 2001. Source: BT Financial Group

3. China ‘shock’ The reasons: BT Chief Economist, Chris Caton  Little to do with any change in fortune for the Chinese economy.  The Chinese domestic sharemarket has had a very strong run lately, and was clearly vulnerable.  The fall seems to be a result of rumours that the Government was going to cut down on speculation and ‘illegal’ investing.  Links between the sharemarket and the economy are not strong - the fall in the Chinese sharemarket should have very little effect on the Chinese economy, and hence little or no effect on the demand for commodities.

4. China ‘shock’ Could it happen again?  Markets likely to remain volatile  “ History teaches us that such ‘pullbacks’ are almost always buying opportunities. Corrections of 5-10% occur regularly in rising markets, and investors who simply do nothing are generally back above where they were the day before the correction within weeks.” BT Chief Economist, Chris Caton

5. Australian sharemarket performance past three years Source: BT Financial Group. Figures as at 28 February 2007.

6. Global indices 1 year (%)3 years (% pa)5 years (% pa) US (S&P 500)9.857.114.92 US Tech (Nasdaq)5.915.986.89 Japan (Nikkei)8.6316.8210.70 HK (Hang Sang)23.4512.2213.39 Germany (DAX)15.8618.675.91 France (CAC)10.3213.984.33 Australia S&P/ASX 30023.7725.4416.19 Small companies30.5727.1619.61 Resources19.0833.6923.81 Listed Property33.4525.3820.09 Source: BT Financial Group. Figures as at 28 February 2007.

7. Asset class performance Source: S&P/ASX 300 Acc Index, MSCI World ex Aust (net divs) Index in $A, S&P/ASX 300 Property Index, UBS Composite 0+ years index, Citigroup World Government Bond, Unhedged in AUD

8. Long-term asset class performance Source: S&P/ASX 300 Acc Index, MSCI World ex Aust (net divs) Index in $A, S&P/ASX 300 Property Index, UBS Composite 0+ years index, Citigroup World Government Bond, Unhedged in AUD

9. Best performing asset class highlighted in red Asset class performance

10. Source: S&P/ASX 300 Acc Index, MSCI World ex Aust (net divs) Index in $A, S&P/ASX 300 Property Index, UBS Composite 0+ years index, Citigroup World Government Bond, Unhedged in AUD Asset class performance

11. Currency markets – $A per $US Source: BT Financial Group. Figures as at 28 February 2007.

12. Currency markets – $A per Euro Source: BT Financial Group. Figures as at 28 February 2007.

13. Currency markets – $A per Yen Source: BT Financial Group. Figures as at 28 February 2007.

14. Oil prices (US$ per barrel) Source: BT Financial Group. West Texas Intermediate as at 28 February 2007.

15. Official world interest rates Current rateLast moveDirection of last move Australia6.25%November 2006  US5.25%June 2006  Japan0.25%July 2006  UK5.25%January 2007  Source: BT Financial Group.

16. Disclaimer  The information in this presentation is general only and does not take into account your particular investment objectives or financial situation. Before making an investment decision you should consult a financial adviser. The information is given in good faith and has been derived from sources believed to be accurate. However, no member of the BT Financial Group gives any warranty of reliability or accuracy nor accepts any responsibility arising in any other way including for negligence. This disclaimer is subject to any contrary provisions of any applicable legislation. An investment in any fund described in this presentation is not a deposit with or any other liability of Westpac Banking Corporation ABN 33 007 457 141. None of Westpac Banking Corporation or its related entities guarantee the capital value or investment performance of any fund. Unless stated otherwise, BT Financial Group is the source of all charts, performance information and other data. Past performance is not a reliable indicator of future performance.