Mecu/regionalone Merger Approved By Boards - Members To Vote On Approval

Boards Approve mecu/RegionalOne Merger Members to Vote on Approval.

Victoria's largest credit union mecu Limited announced today that it will pursue the proposed merger with Bendigo based RegionalOne Credit Union.

mecu CEO Phylip Doughty, has advised credit union members, and staff that the proposed merger will create a dominant Victorian credit union with assets exceeding $2billion, over $220million in capital, 30 Service Centres located throughout the country and around 300 staff. The combined credit union will have more than 100,000 members living in Victoria alone with more than half of these members residing throughout regional Victoria.

RegionalOne members will be encouraged to approve the merger at a Special
General Meeting to be held before the end of June 2009.

Mr Doughty confirmed the merger proposal includes a commitment to retain all
branches "several thousand mecu members currently reside within very close
proximity to RegionalOne branches and are expected to increase their level of
business with the credit union due to the improved access to personal services".

The merger will also see all RegionalOne staff retained to further develop the credit union throughout our existing communities.

mecu has a strong track record of decentralising key areas of its operations into regional Victoria. Today around half of mecu's staff live and work in Gippsland. This commitment to regional development will see mecu make a further investment into RegionalOne's Bendigo based administration centre.

The Boards of mecu and RegionalOne have confirmed the proposed merger offers significant benefits to all members, staff and the communities served by each credit union including:

*A broader range of competitive products and services.

*Enhanced career opportunities for all staff.

*Greater resources to pursue opportunities for further growth across the state.

*Greater scale and expertise to match a sophisticated and competitive financial
services market.

Doughty states "I am confident that both RegionalOne and mecu members will
recognise this proposal to be an exceptional opportunity. mecu is committed to
investing in the development of a strong credit union presence across regional
Victoria".

For mecu comment contact:
mecu CEO Phylip Doughty on
03 9854 4646 or

mecu General Manager Development Rowan Dowland on
9854 4644,
mobile 0418508718

SOURCE: mecu