The Chairman's response to Business Review Weekly

29 July 2004

Dear Sir : "The ‘Which Bank’ Trials" cover story, July 22-28 2004

I take exception to the writer’s inaccurate interpretation of my comments in relation to David Murray and his execution of ‘Which new Bank’. I most certainly did not "hint" or say that "Murray himself is under pressure to dig Which New Bank out of its hole." David Murray is not "under pressure" and Which new Bank is not "in a hole".

I said that for a major transformation of the kind the Bank is undertaking, everybody from the Board down, including the CEO and his team, has to work differently to achieve success. This is axiomatic and it is happening, but the reference in the article could give a totally wrong impression.

In the Commonwealth Bank’s most recent update on the 'Which new Bank' program, we advised the market that for the 2003-2004 year we would be completing all major project milestones as planned and that benefits for the period were likely to exceed targets.

Yours faithfully,

John Ralph, Chairman