Washington Mutual Completes Acquisition of HomeSide Lending

March 4, 2002

SEATTLE, WA -- Washington Mutual, Inc. (WM) has completed its acquisition of certain operating assets of HomeSide Lending, Inc., the U.S. mortgage unit of the National Australia Bank Limited (the "National") (NAB) (NAB) .

Under the terms of the agreement, Washington Mutual has acquired approximately $2.1 billion in HomeSide assets, including approximately $1.9 billion in performing warehoused prime residential mortgage loans. It will also subservice HomeSide's mortgage servicing portfolio, valued at $181.3 billion at Dec. 31, 2001, and representing approximately 2 million customers.

The National retains its financial interest in the mortgage servicing rights to be subserviced by Washington Mutual, the related hedges and certain other HomeSide assets and liabilities.

"HomeSide brings added depth and breadth to our mortgage operation and allows us to make further progress toward our goal of being the nation's leading home lender and mortgage servicer," said Craig S. Davis, President of Washington Mutual's Home Loans and Insurance Services Group.

Washington Mutual paid a $25 million premium over the value of the acquired assets. The transaction is expected to be modestly accretive to Washington Mutual's 2002 earnings per share.