Sydney

Level 41, Aurora Place 88 Phillip Street Sydney NSW 2000 Australia GPO Box 3698 Sydney NSW 2001 www.challenger.com.au

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

1 March 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

Syste Kappenbashop

Suzie Koeppenkastrop Company Secretary

attach

Melbourne Level 10, 101 Collins Street PO Box 297, Flinders Lane, Melbourne VIC 3000 Telephona 03 8616 1800 Facsimile 03 8616 1899 Level 9, CUA Building 175 Eagle Street GPO Box 3234, Brisbane QLD 4001 Telephone 07 3218 8000 Facsimile 07 3220 3132
Level 9, SS St Georges Terrace PO Box 25065, St Georges Tenace, Perth WA 6831 Telephone 07 3218 8000 Facs Brisbane Perth Adelaide

Challenger Financial Services Group Limited ABN 85 106 842 371 Challenger Group Services Pty Limited ABN 91 085 657 307
Challenger Life No.2 Limited ABN 44 072 488 938 AFSL 234670 Challenger Commercial Lending Limited ABN

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: 1 March 2007

$\mathbf{1}$ . Previous Notice

The shareholder's previous notice, given pursuant to an exemption under section 259C(2) Corporations Act 2001, was dated 15 February 2007.

$\overline{z}$ 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:

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:

Changes (if any) in Interest or Derivatives Exposure since the previous notice $\mathbf{4}$

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

áy Koppertembrap Date: 1 March 2007 Signature: Company Secretary
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 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 259C(2) Exemption signed by me and dated 01/03/2007

Suzie Kooppenkastrop
Suzie Kooppenkastrop
Company Secretary

Annexure A

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 259C(2) Exemption signed by me and dated 01/03/2007

Suzie Kosppenkastrop
Suzie Kosppenkastrop
Company Secretary

Annexure A

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 259C(2) Exemption signed by me and dated 01/03/2007

Suzie Koeppenkastrop
Suzie Koeppenkastrop
Company Secretary

$\ddot{\phantom{a}}$