10 May 2007

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

By electronic lodgement

Dear Sir

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

Syan Kyenestrap

Suzie Koeppenkastrop Company Secretary

attach

Melbourne Level 10, 101 Collins Street FO Box 297, Flinders Lane, Melbourne VIC 3000 Telephone 03 8616 1800 Facsimile 03 8616 1809 Level 9, CUA Building 175 Eagle Street GPO Box 3234, Brisbane QLD 4001 Telephone 07 3218 8000 Facsimile 07 3220 3132 Brisbane Level 3, 55 St Georges Terrace PO Box 20065, St Georges Yerrace, Penn WA 6831 Telephone 08 9223 7800 Facsimile 08 9221 2499 Ports Adelaide Level 1, 212 Piris Street Adelarde SA 5000 Telephone 08 8211 7777 Facsimile 08 8212 1661

Challenger Financial Services Group Limited ABN 85-106-842-371. Challenger Group Services Pty Limited ABN 21-085-657-307
Challenger Life No.2: Limited ABN 44-072-486-838. AFSL 234670. Challenger Commercial Lending Limited

onstage teacy with the summer can work with 236 841 applies the street of the stage of ARSN 114 138 703 CF investment hyst 2 ARSN 114 138 632
Challenger Wine Trust ARSN 092-960-060 Challenger Diversified Property Trust 1 A Challenger Management Services Limited ABN 20-002-362-842 AFSL 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: 10 May 2007

$\ddagger$ . Previous Notice

The shareholder's previous notice, given pursuant to an exemption under section 259C(2) Corporations Act 2001, was dated 26 April 2007.

$2.$ 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:

з. 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:

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:

5. Addresses

6. Signature

Name: Suzie Koeppenkastrop

Kypeloning Date: 10 May 2007 .
Condiguaramente al condigual de condigual de condigual de la condigual de la condigual de la condigua de la co Signature: سير 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

$\bar{\mathcal{A}}$

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 10/05/2007

Suzie Roeppenkastrop
Company Secretary

$\overline{a}$

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 10/05/2007

Keppertemp ۮ

Suzie Koeppenkastrop Company Secretary

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 10/05/2007

Suzie Koeppenkastrop
Company Secretary