Sydney

Level 15, 265 Pitt Street Sydney NSW 2000 Australia GPO Box 3698 Sydney NSW 2001 www.challenger.com.au

12332313323232323232333333333333333333

Telephone 02 9994 7000 Facsimile 02 9994 7777

The Manager Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000

By electronic lodgement

Dear Sir

21 June 2007

Re: Notice pursuant to a Corporations Act Section 259C (2) exemption

We enclose a notice pursuant to an exemption under Corporations Act Section 259C (2). This notice is given by Challenger Financial Services Group Limited and each of its subsidiaries named in Annexure A to this notice.

Yours faithfully

Sys Kapeleship

Suzie Koeppenkastrop Company Secretary

attach

Malbourne Lavel 10, 101 Collins Street PO Box 297, Flinders Lane, Malbourne VIC 3000 Telephone 03 8616 1800 Facelmile 03:4616 1899 Level 9, CUA Building 175 Eagle Street GPO Box 3234, Brisbane QLD 4901 Telephone 07 3218 8000 Facsimile 07 3220 3132 Brisbane Level (1, 55 St Georges Terrace PO Box 25065, St Georges Terrace, Renh WA 6831 Telephone 08 9223 7800 Facsimile 08 9221 2499 Perth Level 1, 212 Pine Street Adelaide SA 5000 Telephone 08 8211 7777 Facsimile 08 8212 1661 Adelaide

Challenger Financial Services Group Limited ABN 95-106 842 371 Challenger Group Services Pty Limited ABN 91 086 857 307

Challenger Life No.2 Limited ABN 44 072 488 938 AFSL 234870 Challenger Commercial Lexiking Limited ABN 65.000 033 143
Challenger Life No.2 Limited ABN 44 072 488 938 AFSL 234870 Challenger Commercial Lexiking Limited ABN 6 Challenger Management Services Limited ABN 29 092 382 842 APSL 234 678

Notice by Challenger Financial Services Group Limited (and associates) required pursuant to a Corporations Act Section 259C(2) Exemption

To: Challenger Financial Services Group Limited (and entities listed in Annexure A)

Shareholder

Name of shareholder: Challenger Financial Services Group Limited (ACN 106 842 371 ("Challenger") (and entities listed in Annexure A).

Date of this Notice: 21 June 2007

Previous Notice $\blacksquare$

The shareholder's previous notice, given pursuant to an exemption under section 259C(2) Corporations Act 2001, was dated 7 June 2007.

$\overline{2}$ . Total number of voting shares

The total number of voting shares in Challenger Financial Services Group Limited ("Challenger") in respect of which Challenger or its controlled entities have the power to control voting or disposal ("Interest") or to which a derivative exposure is held on the date of this notice is:

$\overline{\mathbf{3}}$ . Details of Present Interests and derivatives exposures

On the date of this notice, Challenger or its controlled entities had an Interest in or derivatives exposure to the following voting shares in Challenger, and the Interest or derivatives exposure was of the following nature:

J.

Changes (if any) in Interest or Derivatives Exposure since the previous notice 4.

Particulars of each change in, or change in the nature of, the Interests of the shareholder in, or derivative exposure to, voting shares since the previous notice given by the shareholder are:

$\mathcal{L}$

5. Addresses

6. Signature

Name: Suzie Koeppenkastrop

Signature: 10 = 16 medication pate: 21 June 2007
Company Secretary

Challenger Financial Services Group Limited

This notice (pursuant to a Corporations Act section 259C(2) exemption) comprises 6 pages in total (including Annexure A). Annexure A comprises 3 pages.

Annexure 1

This is page 1 of 3 pages of Annexure 1 referred to in the Notice by Challenger Financial Services Group Limited
(and associates) pursuant to a Corporations Act Section 259(C (2) Exemption signed by me and dated 21/06/2007

Suzie Koeppenkastrop
Company Secretary

Annexure 1

This is page 2 of 3 pages of Annexure 1 referred to in the Notice by Challenger Financial Services Group Limited
(and associates) pursuant to a Corporations Act Section 259(C (2) Exemption signed by me and dated 21/06/2007

Suzie Roeppenkastrop

Annexure 1

This is page 3 of 3 pages of Annexure 1 referred to in the Notice by Challenger Financial Services Group Limited
(and associates) pursuant to a Corporations Act Section 259(C (2) Exemption signed by me and dated 21/06/2007

Suzie Koeppenkastrop