MBF Australia Limited ('MBF') has reached another important milestone in the proposed merger with BUPA Australia Pty Ltd ('BUPA Australia').

The Federal Court of Australia today approved the release of an Information Memorandum about the proposal.

The Information Memorandum will provide eligible contributors with full details of the $2.41 billion offer from BUPA Australia to combine the businesses of the MBF Group and the BUPA Australia Group and instructions on how to vote.

MBF will distribute the Information Memorandum over the coming weeks, ahead of the Scheme Meeting to vote on the proposal scheduled for 12 May 2008.

The Information Memorandum will be accompanied by an Allocation Form that will set out an estimate of the cash entitlement eligible contributors will receive if the proposal is approved and implemented. The cash entitlement will be based on tenure and type of policy.

"I encourage all eligible contributors to read the Information Memorandum. It is an important document which explains why the MBF Board and the Independent Expert believe the proposal is in the best interests of eligible contributors," said MBF Chairman, Mr John Conde.

"By voting in favour of merging the businesses of the MBF Group and the BUPA Australia Group, eligible contributors will be supporting a proposal to create a national private health insurance group that will be in a stronger position to limit premium price increases and provide improved services.

"They will also be voting to bring together two of the country's leading private health insurers that have been looking after the health care needs of Australians for generations.

"Importantly for MBF contributors, it will be business as usual for their existing private health insurance policy."

MBF Managing Director and Chief Executive Officer Eric Dodd said the merger was a significant step in the consolidation of the private health insurance industry at a time when rationalisation has never been more essential.

"Bringing together MBF and BUPA Australia Health's brands, HBA and Mutual Community, will create a strong and competitive health insurance group with national reach. This is something MBF has wanted to achieve for a long time," Mr Dodd said.

The Information Memorandum will describe how eligible MBF contributors can vote on the proposal. It will be possible to vote in person by attending the Scheme Meeting, or by appointing a proxy. A proxy can be appointed by completing and returning the proxy form enclosed with the Information Memorandum or by visiting the MBF website at www.mbf.com.au and following the instructions on how to lodge an electronic proxy. Proxies must be received by no later than 11:00 a.m. (AEST) on 10 May 2008. On-line proxy votes can be lodged once the Information Memorandum has been sent to all eligible MBF contributors.

Media Contact: David Jones MBF Public Affairs 0417 232 246

About MBF:

MBF is Australia's largest, non-government private health insurer covering nearly 2 million people. MBF provides private health insurance throughout Australia and is the number one or number two private health insurer in Queensland, New South Wales, Tasmania and the Northern Territory. In addition to its core private health insurance business, the MBF group of companies offer life and travel insurance as well as financial planning services through ClearView Retirement Solutions.

About BUPA Australia:

BUPA Australia is the second-largest, non-government private health insurer after MBF, covering more than 1 million people. Its private health insurance businesses are HBA and Mutual Community. HBA is ranked second to Medibank Private in Victoria and Mutual Community is the number one private health insurer in South Australia. BUPA Australia is part of the international BUPA Group, a leading healthcare company serving over 8 million customers.