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Summary

Dividend Rate 6.57% for Santos Preference Shares

Santos Limited today announced that it has set the dividend rate for the issue of Preference Shares at 6.57% per annum, which will be fixed until 30 September 2006.

As outlined in the prospectus dated 24 October 2001, the dividend rate has been set as the greater of 6.50% per annum, or the swap rate prevailing on the date of allotment of the Preference Shares plus 1.20%.

The swap rate on the allotment date (4 December 2001) was 5.37%, hence the dividend rate has been set at 6.57%.

All enquiries in relation to the dividend rate should be directed to the Santos Information Line on 1300 555 541.