Customised Market Investments

A Customised Market Investment ("CMI") can be tailored to enable a wholesale client to link their return on funds invested to a wide range of asset classes and/or market sectors from around the world. It also offers the benefit of a nominated level of capital protection at maturity.

Each CMI can be tailored to meet an investor's individual requirements. This allows the investor to specify many of the desired terms of their CMI, including:

• the underlying assets to which the return is linked
• the level of participation in growth of the asset versus a regular or contingent coupon on the amount invested
• the level of capital protection on the amount invested at maturity
• the term of the investment
• the pay-off structure that is utilised

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How does a CMI work?

The pay-off on a CMI at maturity is comprised of two elements:

1. Protected Amount

The Protected Amount is the minimum capital return an investor will receive at maturity. The Protected Amount is calculated as the Protection Level multiplied by the investment amount. The Protection Level can be anywhere between 0% and 100%. Where an investor selects 0% protection, the Protected Amount will be zero.

PLUS:

2. Performance Amount

The Performance Amount represents the performance of the underlying asset exposure. The Performance Amount is based on the growth of the asset exposure above the strike price of the CMI and the Participation Rate. The Participation Rate reflects the investor's exposure to the performance of that asset (eg. a 100% Participation Rate means the investor will participate in 100% of the asset's growth above the strike price). The strike price is a percentage of the original asset level, eg. a 100% strike price is equal to the initial asset level. The Performance Amount will be zero if there is no growth in the asset exposure above the strike price, however different pay-off strategies may be utilised.

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Key Benefits

A CMI offers a range of potential benefits, including:

• Market access - ability to link the return on the CMI to a diverse range of domestic or international assets and markets;
• Growth - potential for growth through exposure to a tailored reference basket;
• Income - ability to include a regular coupon payment on the CMI;
• Capital protection - ability to protect up to 100% of original capital at maturity; and
• This is a medium- to long-term investment that requires little administration.

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What types of underlying assets can be used?

CMIs can be linked to the performance of a range of assets, including domestic and international indices, individual stocks, as well as commodities and exchange traded funds. The CMI can be linked to a single asset or basket of assets. Following is a small sample of potential underlying assets to which a CMI can be linked.

Individual stocks and equity indices in the following jurisdictions:

Example of Sector Specific Exposures

This is an indicative range of available assets. Availability is subject to certain conditions, including Macquarie’s ability to hedge. Please contact Macquarie to discuss other potential underlying assets.

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Case Study

An investor has AUD2,000,000 and would like to transfer this holding to a CMI with exposure to global equity markets. The investor tailors the following CMI:

The above example is indicative only and is not a recommendation or endorsement of the Reference Basket or other variables shown. Pricing is correct as at 1 October 2007. All the above terms of the CMI can be tailored to each individual's requirements, including the Protected Amount, term, Reference Basket composition and Coupon Rate. Changes in each of these variables will impact the Participation Rate in the underlying basket.

Many of the terms of a CMI can be tailored to your requirements. Please contact Macquarie to discuss tailored pricing and potential underlying assets. The minimum investment in a CMI is AUD500,000 and CMIs are available to wholesale clients only. Refer to the Product Booklet and Term Sheet for more details of the investment terms and fees and charges.

This information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 and is for use by (as defined under the Corporations Act 2001) wholesale clients or representatives of Australian Financial Service Licensees acting in that capacity only. No part of the information is to be construed as an invitation or offer to acquire any product or service. If you are not the intended recipient, you must not use or rely on the information in this letter in any way. It is indicative only and is not intended to set forth a final expression of the terms and conditions of any financial product or transaction. It may be amended, superseded or replaced in its entirety by subsequent term sheets or other summaries of terms and conditions. Due to the proprietary nature of this information, please consider it to be confidential. It may not be reproduced or circulated (in whole or part) without Macquarie's prior written consent. It also only aims to notify you of certain and not all possible risks, in undertaking such a transaction. You should obtain independent advice and make your own assessment of the investment. All figures provided are illustrative only. Any figures may be affected by the accuracy of assumptions, risks and other uncertainties which may cause the actual returns to differ. CMIs are not deposits with Macquarie or of any Macquarie Bank Group Company, and are subject to investment risk, including possible delays in repayment and loss of capital invested. Macquarie does not guarantee any particular rate of return on CMIs, or the future performance of the Deliverable Parcel. Macquarie or any of its affiliates may from time to time have long or short positions in and may make a market in or otherwise buy or sell instruments identical or economically related to any financial product, including any CMI in which you have an interest, or it may have an investment banking or other commercial relationship with the issuer of any security or financial product underlying such CMI. Macquarie or its associates, officers or employees may have interests in the financial products referred to in this information by acting in various roles including as investment banker, underwriter or dealer, holder of principal positions, broker, lender or adviser. Macquarie or its associates may receive fees, brokerage or commissions for acting in those capacities. This information is current as at 1 October 2007 and is subject to change without notice.