Challenger Financial Services Group Limited
ACN 106 842 371

Sydney

Level 41, Aurora Place 88 Phillip Street Sydney NSW 2000 Australia www.challenger.com.au

felephone: 02 9994 7000 facsimile: 02 9994 7777

The Manager Company Announcement Platform Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000

Dear Sir

Re: Initial Director's Interest Notice

Attached is the Initial Director's Interest Notice (Appendix 3X) for Mr Graham Cubbin who has been appointed to the board of Challenger Financial Services Group Limited (CGF).

Yours faithfully

David Slatyer

Company Secretary

Enc.

09 January 2004

Appendix 3X

Rule 3.19A.1

Initial Director's Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public.

Introduced 30/9/2001.

We (the entity) give ASX the following information under listing rule 3.19A.1 and as agent for the director for the purposes of section 205G of the Corporations Act.

Part 1 - Director's relevant interests in securities of which the director is the registered holder

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of "notifiable interest of a director" should be disclosed in this part.

Number & class of securities

50,004 Ordinary fully paid 400,000 Employee restricted staff shares

Part 2 – Director's relevant interests in securities of which the director is not the registered holder

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

⁺ See chapter 19 for defined terms.

Part 3 - Director's interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of "notifiable interest of a director" should be disclosed in this part.

$+$ See chapter 19 for defined terms.