Challenger Financial Services Group Limited
ACN 106 842 371

Sydney

Level 41, Aurora Piace 88 Phillip Street Sydney NSW 2000 Australia www.challenger.com.au

telephone: 02 9994 7000 facsimile: 02 9994 7777

31 May 2006

The Manager Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000

By electronic lodgement

Dear Sir

Re: Notice of ceasing to be a substantial holder~ Iinet Limited (IIN)

We enclose notice of ceasing to be a substantial holder in Iinet Limited. This notice is given by Challenger Financial Services Group Limited and each of its subsidiaries named in Annexure 1 to this notice.

Yours faithfully

Nie

Chris Robson Company Secretary

attach

Melbourne

Brisbane

Level 41, 101 Collins Street Melbourne VIC 3000 telephone 03 8616 1000

Level 9, 175 Eagle Street Brisbane QLD 4000 telephone 07 3218 8000
facsimile 07 3220 3132

Level 2, 141 St Georges Terrace Perth WA 6000 telephone 08 9480 2800 facsimile 08 9322 9289

Perth

Adelaide

Level 9, T & G Building
82 King Street
Adelaide SA 5000 telephone 08 8211 7777 facsimile 06 8212 1661

Form 605

Corporations Act 2001
Section 671B

Notice of ceasing to be a substantial holder

2. Changes in relevant interests

Particulars of each change in, or change in the nature of, a relevant interest (2) of the substantial holder or an associate (3) in voting securities of the company or scheme, since the substantial holder was last required to give a substantial holding notice to the company or scheme are as follows:

3. Changes in association

The following persons who have become associates (3) of ceased to be associates of, or have changed the nature of their association (7) with, the substantial holder in relation to voting interests in the company or scheme are as follows:

4. Addresses

The addresses of persons named in this form are as follows:

Signature

This is page 1 of 3 pages of Annexure 1 referred to in Form 605 signed by me and dated 31/05/2006

Oue

Chris Robson
Company Secretary

This is page 2 of 3 pages of Annexure 1 referred to in Form 605 signed by me and dated 31/05/2006

Oue

Chris Robson
Company Secretary

This is page 3 of 3 pages of Annexure 1 referred to in Form 605 signed by me and dated 31/05/2006

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This is page 1 of 1 page of Annexure 2 referred to in Form 605 signed by me and dated 31/05/2006

$CMC$

Chris Robson

Transactions on ordinary fully paid: