BUPA AUSTRALIA PROPOSES MERGER WITH MBF

August 2007

BUPA Australia today confirmed its interest in merging its Australian businesses, HBA and Mutual Community, with MBF following initial discussions between the two leading health funds.

BUPA Australia believes that a merger will create a truly national health insurer with benefits for members and staff of both funds, and the Australian health system as a whole.

BUPA Australia’s Managing Director Richard Bowden said: "Together MBF and BUPA Australia would create the country’s leading health fund, which would be in a stronger position to hold down premiums, whilst providing greater efficiencies and improved services for members – as well as being a leading voice in Australian health care."

BUPA Australia is now seeking the necessary regulatory approvals for its proposal and will re-initiate discussions with MBF once these approvals have been progressed.

For media enquires contact:

Julian Murphy
BUPA Australia
Corporate Communications – Mob: 0434 072 024

Background information:

The health care needs of more than one million Australians are supported by BUPA Australia, giving the health fund a national market share of 10.13 per cent. BUPA Australia is known as HBA in all states except South Australia and the Northern Territory where the customer brand is Mutual Community. Both brands have provided health cover for Australians for more than 70 years.

BUPA Australia operates a customer branch network in Victoria, New South Wales, Northern Territory and South Australia. The majority of customers are located in Victoria (550,000) and in South Australia (351,000).

BUPA Australia is the country’s largest health fund to cover over 94 per cent of hospital charges and has consistently kept premium rises below the industry average for the past six years.

As part of a strong global health focused group BUPA Australia continues to lead the industry in product innovation and improved services and benefits for its customers. In addition, BUPA Australia provides customers with travel, vehicle, home and contents insurance services.