MBF Statement

Release date: 7 December 2007

The Board of MBF Australia Limited ("MBF") advised today that it has received a revised and enhanced proposal from BUPA Australia.

The revised proposal would involve the merger of the two private health insurance businesses in Australia and a cash payment of $2.41 billion for MBF contributors.

MBF has been developing a proposal for demutualisation and listing early next year. The Board is actively considering the BUPA proposal and preliminary informal consultations have been held with the MBF Council. The Board expects to make a decision in the near future as to whether to recommend this proposal formally to the MBF Council and contributors or continue with the demutualisation proposal.

MBF will not be making further comments at this stage.