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CHALLENGER LIMITED Director's Dealing 2007

May 8, 2007

64641_rns_2007-05-08_98efe6f6-89e2-4859-889a-a12379abf010.pdf

Director's Dealing

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Appendix 3Y

Rule 3.19A.2

Change of 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.

Name of entity Challenger Financial Services Group Limited
ABN 85106842371

We (the entity) give ASX the following information under listing rule 3.19A.2 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director Michael Tilley
Date of last notice 19 December 2006

Part 1 - Change of director's relevant interests in securities

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.

Direct or indirect interest Indirect interest
Nature of indirect interest Off market transfer from Oxleigh Pty Ltd to
(including registered holder) Tenessee Investments Pty Ltd atf Tennessee
Note: Provide details of the circumstances giving rise to the relevant
interest.
Investments Superannuation Fund
Date of change 4 May 2007
No. of securities held prior to change 7,022,999
Class Ordinary shares
Number acquired 380,000
Number disposed 380,000
Value/Consideration
Note: If consideration is non-cash, provide details and estimated
valuation
\$2,044,400
No. of securities held after change 7,022,999

+ See chapter 19 for defined terms.

Nature of change
Example: on-market trade, off-market trade, exercise of options, issue of
securities under dividend reinvestment plan, participation in buy-back
Off market transfer

Part 2 – Change of 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.

Detail of contract
Nature of interest
Name of registered holder
(if issued securities)
Date of change
No. and class of securities to
which interest related prior to
change
Note: Details are only required for a contract in relation
to which the interest has changed
Interest acquired
Interest disposed
Value/Consideration
Note: If consideration is non-cash, provide details and
an estimated valuation.
Interest after change

$+$ See chapter 19 for defined terms.