Tailored Equity Collars

Tailored Equity Collars ("TECs") protect the value of your domestic and international share positions against share price falls, provide leveraged exposure to domestic and international equity markets, and give you access to a convenient loan facility.

Many shareholders and corporate executives hold large single share or option positions in domestic or internationally listed companies. These positions can be financially rewarding; however a large exposure to a single share is not without its worry.

Tailored Equity Collars enable holders of shares or executive options to protect the value of their shareholding and access a convenient loan facility.

Macquarie's Tailored Equity Collar Facility also enables investors to gain new leveraged exposure to domestic and international equity markets with a flexible, tailored platform.

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Using a Tailored Equity Collar when you hold shares

You can use a TEC to manage the risks associated with large company shareholdings. It enables you to:

• Protect the value of your share and option positions against share price falls
• Hold your international shares with currency protection
• Benefit from share price growth up to the Cap Price
• Collar your positions for no upfront cost
• Gear into stocks that may not be covered by margin lenders
• Choose the term that suits you - up to five years
• Retain shareholder benefits, including ordinary dividend income and franking credits*
• Access funds without selling your shares

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Using a Tailored Equity Collar when you hold options

You can use a TEC to exercise your executive options and manage the risks of your new shareholding. It enables you to:

• Fund the exercise of your executive options with no risk of margin calls
• Hold your international shares with currency protection
• Protect the value of your share positions against share price falls
• Benefit from share price growth up to the Cap Price
• Collar your share positions for no upfront cost
• Choose the term that suits you - up to five years
• Receive shareholder benefits, including ordinary dividend income and franking credits*

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Using a Tailored Equity Collar when you want to purchase new shares

You can use a TEC to purchase new shareholdings and manage the risks of these new shareholdings.

• The facility enables investors to gear into stocks that may not be covered by margin lenders.
• Investors have the freedom to tailor their individual structure, including their preferred term (between six months and five years).
• Investors have the flexibility to set their desired protection levels (up to a maximum of 100%). This can include currency protection for international positions.
• Investors have the ability to reduce the cost of protection by creating a "collar" structure where upside growth is capped.
• It is possible to implement a collar with no upfront protection cost payable by the investor.
• Investors may be able to establish a 95% protection level for their portfolio and still borrow 100% of the value of their shares (subject to credit approval).

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Product Disclosure Statement

Before investing in the Macquarie Tailored Equity Collar Facility, your clients must first read and understand the TEC Product Disclosure Statement.

• Tailored Equity Collars PDS
• Tailored Equity Collars Brochure

To find out more about Tailored Equity Collars, ask a Tailored Equity Collar Specialist on (02) 8232 1800 or email tailoredsolutions@macquarie.com

* Subject to eligibility.

This general advice by Macquarie Bank Limited ABN 46 008 583 542 ("Macquarie") doesn't take into account what you currently have, or what you want and need for your financial future. You should consider these matters and read the Product Disclosure Statement, including any supplementary PDS, for the Tailored Equity Collar Facility ("PDS") before making an investment decision. You can get a copy of the PDS from www.macquarie.com.au.

Macquarie Group, its employees and officers may have interests in the financial products referred to in this advice by acting in various roles (including as director, investment banker, underwriter or dealer, holder of principal positions, broker, lender or adviser) and may receive fees for so acting. Macquarie may effect transactions which are inconsistent with any recommendations in the advice. Macquarie will receive remuneration and pay commission to introducing advisers as described in the PDS.

Macquarie does not give tax advice. The tax discussion in this document is based on laws current at the time of writing. These laws and the levels of tax may change. The application of tax laws depends on investors' individual circumstances. Please seek your own taxation advice.

This information is intended for Australian residents only. The distribution of the information in jurisdictions outside Australia may be restricted by law and persons into whose possession the information comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the laws of an applicable jurisdiction.

Information is current as 26 May 2008 but is subject to change without notice.