Ordinary shares.

The Australian Securities Exchange (ASX), trading under the code 'NHF'.

Issuer Sponsorship replaced share certificates in 1997. Issuer Sponsorship enables shareholders to hold their securities in 'paperless' form (like the Clearing House Electronic Subregister System (CHESS) of the ASX), but without being tied to a particular broker. However, unlike CHESS, shareholders cannot hold securities in different companies under the one identifying holder number. Your SRN typically begins with the letter 'I' (which may look like the numeral '1' in some fonts).

Instead of receiving share certificates, holders receive holding statements (like CHESS) which show all details and movements such as purchases and sales. Statements are issued when you first become an nib shareholder, and are dispatched within five business days of the end of any month in which transactions occur.

One of the important things to remember about Issuer Sponsorship is that your security holder reference number (SRN) should be treated like a bank account PIN and not disclosed to third parties (except when authorised by you for a particular purpose - eg. trading, etc.). Please quote your SRN in any correspondence with Computershare (nib's share registry provider). This will enable Computershare to correctly identify you and fulfil your requests.

Broker Sponsorship enables shareholders who are regular traders with a particular broker to have all of their holdings in different companies recorded under one holder identification number (HIN). Your HIN begins with the letter 'X'. Again, it is extremely important that the confidentiality of your HIN is maintained.

Broker sponsored holdings are maintained on ASX's CHESS system. Your broker can explain this to you in more detail.

Another very important thing to know about Broker Sponsorship is that nearly all changes (changes of address, etc.) must be made through your sponsoring broker. This is to ensure that their records about you are completely correct.

You can determine the number of nib shares you hold through the following link.

nib shares can be bought or sold through a registered stockbroker. The ASX operates a stockbroker referral service and can be contacted by phoning 1300 300 279 or visiting www.asx.com.au.

If you wish to transfer your nib shares to another person, and not through selling your shares on the stock exchange (ie. in an off-market transfer), you will need to complete a transfer of ownership form quoting your SRN. Click here to download a transfer of ownership form.

If the nib shareholding is in the sole name of the deceased, the solicitor or representative of the estate should notify Computershare (nib's share registry provider) of the death and whether or not an application for probate is being made. Computershare will then advise the procedures for dealing with the holding. If the deceased is a joint holder, you should forward a certified copy of the death certificate with a request that the holding be registered in the name of the surviving holder. The request should include the holding's SRN. Click here for Computershare's contact details.

Please contact Computershare, nib's share registry provider for a history of your holding.

Your SRN/HIN is in the top right area of your nib holding statement.

For security reasons we cannot give you your SRN/HIN over the phone or the internet. We can send you a replacement holding statement to your registered address. This statement will contain the number. Please contact Computershare, nib's share registry provider.

Please contact Computershare, nib's share registry provider, immediately either by phone, mail or fax. A lock will be placed on the holding to prevent any unauthorised trading. A statement will then be issued advising you of your new SRN/HIN.

For Issuer Sponsored shareholders
If the names, addresses and banking instructions are identical, and they are Issuer Sponsored, the nib shareholdings can be amalgamated. Simply write, fax or e-mail Computershare (nib's share registry provider), quoting each SRN and requesting that they be amalgamated.

Where the names, addresses or banking instructions are not identical, please contact Computershare (nib's share registry provider) for specific instructions.

For Broker Sponsored shareholders
If one or more of your nib shareholdings is Broker Sponsored, you will need to contact your broker to arrange the amalgamation. Computershare (nib's share registry provider) is not permitted to make changes to Broker Sponsored holdings.

nib is aware of unsolicited offers having been made by Share Buying Group Pty Limited and Hassle Free Share Sales Pty Limited. Both offers are for $0.61 per share, significantly below nib's current share price ($1.155 per share as at close of trading on Friday 14 December 2007).

These offers are not from nib. nib does not endorse any unsolicited offer from these or any other company, and strongly recommends that nib shareholders seek their own independent advice before making a decision whether to accept an unsolicited offer to acquire nib shares.

nib is aware that from time to time, shareholders may also receive unsolicited offers to purchase their shares from companies such as Direct Share Purchasing Corporation Pty Limited, National Exchange Pty Limited and Australian and New Zealand Exchange Pty Limited. These offers tend to be either:

• below market value; or
• offers above market value, but paid out over a number of years.

For further information from Centrelink on unsolicited offers please click here.

Share Buying Group and Hassle Free Share Sales are companies that have previously made unsolicited offers to shareholders of other listed companies.

These offers are not from nib. nib does not endorse any unsolicited offer from these or any other company, and strongly recommends that nib shareholders seek their own independent advice before making a decision whether to accept an unsolicited offer to acquire nib shares.

nib cannot provide investment advice to shareholders. However, nib does not endorse any unsolicited offer by Share Buying Group, Hassle Free Share Sales or any other company to buy shares from its shareholders.

nib recommends shareholders who receive an offer from Share Buying Group, Hassle Free Share Sales or any unsolicited offer for nib shares, should read the documentation carefully and seek independent financial advice.

Share Buying Group and Hassle Free Share Sales got your details from nib's share register.

These offers are not from nib. nib does not endorse any unsolicited offer from these or any other company, and strongly recommends that nib shareholders seek their own independent advice before making a decision whether to accept an unsolicited offer to acquire nib shares.

Like all companies, nib is required by law to provide a copy of its share register to anyone who requests a copy and pays a prescribed fee. The information is restricted to the shareholder's name, address, the number of shares held and the date of acquisition. Other sensitive personal information such as a shareholder's Shareholder Reference Number or Holder identification Number, bank account details, Tax File Number, and dividend payments are not disclosed or made available.

These offers are not from nib. nib does not endorse any unsolicited offer from these or any other company, and strongly recommends that nib shareholders seek their own independent advice before making a decision whether to accept an unsolicited offer to acquire nib shares.

No nib is not conducting a share buy-back. The unsolicited offer you received is either from Share Buying Group or Hassle Free Share Sales. Share Buying Group and Hassle Free Share Sales are not associated with nib.

nib does not endorse any unsolicited offer from these or any other company, and strongly recommends that nib shareholders seek their own independent advice before making a decision whether to accept an unsolicited offer to acquire nib shares.

If you would like to sell your shares for any reason, nib suggests you contact your stockbroker. If you do not have a stockbroker, information on how to get in touch with one is available from the Australian Securities Exchange's Customer Service Centre on 131 279.

All nib Policyholders at 20 March 2007, who remained a Policyholder until 19 July 2007, the time of the Eligible Policyholders' Scheme Meeting are eligible to receive nib shares. If you have not yet received your nib shares, then it is possible that you have not yet verified your address details.

If you have not yet verified your details, you can verify your details by:

• Verifying online

• Calling nib on 1300 664 316; or

• Completing the 'Verification of Details Form'.

To change your address you will need to inform Computershare (nib's share registry provider) of your new address details by one of the following methods:

• Download a 'Change of Address Form' which you will need to complete and return to Computershare (nib's share register provider); or

• Write a letter to Computershare (nib's share registry provider) to provide your new address. The letter MUST include reference to nib Holdings Limited, your Shareholder Reference Number, your name and old address, your new address, and your signature.

This will change your address for your shareholding. However, if you also need to change your policy address, you will need to also contact the nib Customer Care Centre on 13 14 63.

To enable you to receive any nib shares allocated to you under the Demutualisation, nib must first verify that your name and address are correct for the customer number shown on the verification form.

If you do not verify your details, any nib shares that you are entitled to will be held by the Overseas Policyholders and Unverified Policyholders Trust on your behalf until you have verified your details. The nib shares you would be entitled to will be held by the Trust for you for a period of three years from the Demutualisation Date (1 October 2007).

If you verify your details before 1 October 2010, any nib shares you are entitled to will be allocated to you along with any other entitlements such as dividends after deducting applicable tax or expenses.

If, by 1 October 2010, you have not verified your details the Trustee will sell or cancel unclaimed nib shares. You will not be entitled to any compensation for those Shares.

If you verify your details, you should allow up to one week for verification to be reflected on nib's share register. Initially post-listing, verifications will be processed within the time outlined. However, after 12 months the Trustee may do fortnightly or monthly verification mail outs of holding statements showing shares issued to the holder with any other appropriate material required to be sent to shareholders at the time.

You should verify your details as soon as possible. If you have not yet verified your details, you can verify your details by:

• Verifying online
  
  
• Calling nib on 1300 664 316; or
  
  
• Completing the 'Verification of Details Form'.

The 2008 AGM is expected to be held in October or November 2008.

If you are a shareholder, and have elected to receive an Annual Report, you can expect to receive your 2008 Annual Report and Notice of Meeting in September or October 2008. If you have not elected to receive an Annual Report, you will only receive a Notice of Meeting. If you have not received your documents by this date, please contact Computershare (nib's share registry provider).

At the time of nib's IPO, the company advised that due to the anticipated negative retained earnings position of nib health funds following the application of Accounting Standards relating to the demutualisation, dividends could not be paid during the 2008 financial year (see section 3.2 of the Pre-Listing Share Sale Opportunity booklet, or section 2.12 of the 2008 Financial Forecast booklet for more details). As such, you are not currently required to provide your bank account details or Tax File Number.

Following further assessment of all relevant facts and confirmation from nib's auditors, these Standards that constrained our ability to pay dividends in the 2008 financial year now no longer apply.

Rather than declare an unfranked dividend for the first half 2008 results, the Board of nib expects to pay a fully franked dividend (subject to available franking credits) in line with a payout ratio of 40%-60% of normalised profits for the 2008 financial year.

You will be contacted in due course so that nib can collect your bank account and Tax File Number details for future dividend payments.

The cost base of the nib shares issued to Eligible Policyholders is nil, as there was no consideration paid for them given premiums are not considered to be consideration for the issue of the shares. This was outlined in the experts report prepared by PricewaterhouseCoopers and included in the Explanatory Statement.

On 17 October 2007, the Treasurer announced that the Government intended to amend the income tax laws to provide capital gains tax (CGT) certainty for policyholders of health insurers who receive shares as part of their health insurer's demutualisation. These amendments should ensure that policyholders who have received shares as a result of the demutualisation of nib should not be subject to CGT as a consequence of receiving those shares. In addition, the Government announced that these new shareholders should receive a cost base in respect of the shares received from a health insurer's demutualisation.

With the recent change of Government, it is necessary for the new Government to determine whether it will introduce these legislative amendments. nib will be monitoring this position closely. Further details will need to be released by the Government to determine the tax consequences this has for nib policyholders who were entitled to receive shares when nib demutualised.

You are not required to quote your TFN or ABN. However, if you choose not to provide your TFN, ABN or exemption category, and you are an Australian resident for taxation purposes, nib is required to deduct tax at the highest tax rate, plus the Medicare levy, from any unfranked portion of your dividend. Collection of TFNs is strictly regulated by taxation laws.

If you wish to quote your TFN or ABN or exemption category please contact Computershare (nib's share registry provider) or download a form.

If you are an Australian resident for taxation purposes, your TFN can be supplied via mail, fax or phone. Click here to contact Computershare (nib's share registry provider).

You may advise Computershare (nib's share registry provider) by calling or in writing, and include your SRN. Click here to download a 'Change of Address Form'. You will need to forward this form by mail to Computershare (nib's share registry provider).

This advice needs to be signed by the shareholder(s). If you have a joint shareholding, all joint shareholders need to sign the 'Change of Address Form'.

If your holding is broker sponsored in CHESS you must notify any change of address to your sponsoring broker.

To have the spelling of your name corrected you must complete a 'Name Correction Request and Indemnity Form' and send it to the share registry. There can be no change of beneficial interest in making a correction in this manner. If your holding is broker sponsored in CHESS you must ask your broker to make the correction for you. Please click here to contact Computershare (nib's share registry provider).

To enable your shares to be registered in your married name, you must write to Computershare (nib's share registry provider) requesting the change, quoting your SRN and enclosing a copy of your marriage certificate. If your holding is broker sponsored in CHESS you must ask your broker to make the change for you. Please click here to contact Computershare (nib's share registry provider).

Please click here to contact Computershare (nib's share registry provider) if you have any further questions regarding your nib shareholding.