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CHALLENGER LIMITED Share Issue/Capital Change 2004

Dec 8, 2004

64641_rns_2004-12-08_44751019-7371-45cb-868f-24119c90bf4f.pdf

Share Issue/Capital Change

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Sydney

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

telephone 02 9994 7000 facsinile 02 9994 7777

9 December 2004

Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street Sydney NSW 2000

Dear Sirs

Challenger Financial Services Group Limited Capital Structure Following 1 for 5 Share Consolidation

Challenger Financial Services Group Limited ("Challenger") has completed the share consolidation approved by shareholders at its Annual General Meeting on 25 November 2004. Despatch of post-consolidation statements to shareholders occurred on 8 December 2004.

Following consolidation, Challenger has 573,321,048 shares outstanding (of which 44,880,000 are unquoted) and 60,000 options outstanding.

Since 25 November 2004, in accordance with ASX Listing Rules, Challenger has traded under the stock code CGFDA. Effective 10 December 2004, trading in Challenger shares will resume under its normal stock code CGF.

Yours faithfully

fardine

Anne B Gardiner Company Secretary

Melhaurne

Brishane

Level 10, 101 Collins Street PO Box 96, Ffinders Lane McBraine VIC 3000 telephone 03 8616 1800 facsinale 03 8616 1899

Level 9, CUA Building 175 Eagle Street GPO Box 3234 Brisbane QLD 4001 telephone 07 3218 8000 facsituile 07 3220 3132

Level 3, 55 St Georges Terrace PO Box 25065, St Georges Terrace Perth WA 6831 telephone 08 9223 7800 facsimile 08 9221 2499

Perth

Adelaide

Level 9, T & G Building 82 King William Street Adelaide SA 5000 едафовс08 8211 7777 facsionle 08 8212 1661

Challenger Financial Services Group Limited ABN 85 106 642 371 Challenger Managed Investments Limited ABN 94 002 835 592 AFSL 234668 Challenger Securities Limited ABN 28 009 568 496 APSL 234674 Challenger Margin Lending Limited ABN 47 091 338 822 Challenger ML Nominees Fty Limited ABN 79 008 411 943 Challenger Life No.2 Limited ABN 44 072 486 938 AFSL 234670 Challenger Mortgage Management Limited ABN 65 000 033 143 Challenger Superananation Pty Limited ABN 52 006 475 501 AFSL 234681

174/CG045/0504