Washington Mutual Completes Acquisition of Remaining Assets of HomeSide Lending, Inc

Business Wire, Oct 1, 2002

Business Editors

SEATTLE--(BUSINESS WIRE)--Oct. 1, 2002

Washington Mutual, Inc. (NYSE:WM) today announced the company has completed its acquisition of the stock of the parent company of HomeSide Lending, Inc., the U.S. mortgage unit of the National Australia Bank Limited (the "National") (ASX: NAB; NYSE: NAB) for approximately $1.3 billion.

Under terms of the agreement, Washington Mutual acquired HomeSide's 1.4 million customer relationships nationwide associated with its $131 billion mortgage servicing portfolio. The purchase price includes $1.17 billion attributable to the acquired mortgage servicing rights (MSRs) and approximately $900 million in other net assets and liabilities, including hedge assets, offset by $735 million of assumed debt. Washington Mutual expects to sell most of the excess servicing acquired in the transaction, reflecting its strategy to limit growth of MSRs, while maintaining core customer relationships with borrowers.

About Washington Mutual, Inc.

With a history dating back to 1889, Washington Mutual is a national financial services company that provides a diversified line of products and services to consumers and small- to mid-sized businesses. At June 30, 2002, Washington Mutual and its subsidiaries had assets of $261.28 billion. Washington Mutual currently operates more than 2,500 consumer banking, mortgage lending, commercial banking, consumer finance and financial services offices throughout the nation. Washington Mutual's press releases are available at www.wamu.com.