Overview

Successful completion of Macquarie Group share purchase plan

02 June 2009

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO U.S. PERSONS

Macquarie Group Limited (Macquarie) advises that it has successfully completed its Share Purchase Plan (SPP), announced on 1 May, receiving more than 55,000 applications from eligible shareholders for approximately $A669 million of new Macquarie ordinary shares.

Macquarie Chief Financial Officer Greg Ward said Macquarie will accept all valid applications received under the offer, resulting in the allotment of a maximum of 25.2 million new Macquarie shares.  The actual number of shares to be issued is subject to final processing of applications but will not exceed 25.2 million shares.  Under the previously announced terms of the SPP, the shares will be issued at a price of $A26.60 per share and are expected to be allotted on or around Friday, 5 June 2009.

“We are pleased with the strong support and high level of participation we received from our retail shareholders. Together with the strong support we received from institutional investors recently, this demonstrates significant demand for Macquarie Group shares,” Mr Ward said.

Macquarie announced on 1 May that it had raised $A540 million in an institutional private placement at $A27.00 per ordinary share.  In total, Macquarie has raised $A1.2 billion through the institutional placement and the SPP.

Mr Ward said the capital raised would be used to further enhance Macquarie’s strong capital position and provide flexibility to continue to take advantage of current and future market opportunities.

As advised on 21 May, while it is still uncertain, the Federal Government’s proposed amended legislation concerning executive termination benefits and the proposed changes to the taxation of employee share schemes announced in the Federal Budget (Proposed Legislative Changes) may lead to an adverse impact on Macquarie’s ability to implement proposed changes to its remuneration arrangements.  Macquarie announced the proposed changes to its remuneration arrangements on 31 March 2009.  On 1 May, Macquarie announced that the arrangements, if approved by shareholders, would result in approximately $A500 million of 2009 and prior years’ retained staff profit share being applied to equity participation through the issue of new Macquarie shares.

Macquarie will continue to assess the impact of the Proposed Legislative Changes as further details emerge and will update the market when it is in a position to do so, including on potential revised arrangements to meet Macquarie’s remuneration objectives.

Contacts:

Stuart Green
Investor Relations
Macquarie Group
Tel: (612) 8232 5008
Email: stuart.green@macquarie.com

Paula Hannaford
Corporate Communications
Macquarie Group
Tel: (612) 8232 4102
Email: paula.hannaford@macquarie.com