CHALLENGER LIMITED — Share Issue/Capital Change 2007

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Sydney

26 October 2007

Mr A Smythe Senior Adviser Issuers, Market Supervision Australian Stock Exchange Limited PO Box H224 Australia Square SYDNEY NSW 1215

Level 15, 255 Pitt Street Sydney NSW 2000 Australia GPO Box 3698 Sydney NSW 2001 www.challenger.com.au

Telephone 02 9994 7000 Facsimile 02 9994 7777

Dear Mr Smythe

Challenger Financial Services Group Limited (CGF) Notice pursuant to Section 708A(5) of the Corporations Act 2001

Challenger Financial Services Group Limited ("Challenger") gives notice as follows:

On 26 October 2007, Challenger issued 24 million fully paid ordinary shares in the capital of Challenger to The Bank of Tokyo-Mitsubishi UFJ, Ltd and 16 million fully paid ordinary shares in the capital of Challenger to Mitsubishi UFJ Securities Co., Ltd. pursuant to a subscription agreement dated 13 September 2007.

The Shares were issued without disclosure to investors under Part 6D.2 of the Corporations Act 2001 ("Act").

This notice is being given under paragraph 5(e) of section 708A of the Act.

As at the date of this notice Challenger has complied with:

• the provisions of Chapter 2M of the Act as they apply to Challenger; and

• section 674 of the Act,

As at the date of this notice, there is no excluded information within the meaning of sections 708A(7) and 708A(8) of the Act.

Yours sincerely,

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Chris Robson

General Counsel and Group Company Secretary

Melbourne Level 10, 101 Collins Street PO Box 297, Flinders Lane, Melbourne VIC 3000 Telephone 03 8616 1800 Facsimile 03 8616 1899 Brisbane Level 9, CUA Building 175 Eagle Street GPO Box 3234, Brisbane QLD 4001 Telephone 07 3218 8000 Facsimile 07 3220 3132 Perth Level 3, 55 St Georges Terrace PO Box Z5065, St Georges Terrace, Perth WA 6831 Telephone 08 9223 7800 Facsimile 08 9221 2499 Adelaide Level 1, 212 Pirie Street Adelaide 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 91 085 657 307 Challenger Life No.2 Limited ABN 44 072 486 938 AFSL 234670 Challenger Commercial Lending Limited ABN 65 000 033 143 Challenger Managed Investments Limited ABN 94 002 835 592 AFSL 234668 RSE Lic. No. L0002967 Challenger Listed Investments Limited ABN 94 055 293 644 AFSL 236 887 CIF Investment Trust 1 ARSN 114 139 703 CIF Investment Trust 2 ARSN 114 139 632 Challenger Wine Trust ARSN 092 960 060 Challenger Management Services Limited ABN 29 092 382 842