BLOOMBERG ARTICLE 16 APRIL 2002

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Goldman Names Walton, Stuart Co-Chairmen in Australia

(Update2) 2002-04-16 05:31 (New York)

Sydney, April 16 (Bloomberg) -- Goldman Sachs Group Inc. said it promoted Alastair Walton and Andrew Stuart to be co-chairmen of the U.S. bank's Australian business, replacing Jon Aisbitt who will become an advisory director at the firm from the end of May.

Stuart, who is transferring to Sydney from Tokyo ''later this summer,'' and Walton, who joined Goldman from Credit Suisse First Boston last year, are both Australians.

Walton, who will continue to head investment banking in Australia, will help Goldman develop corporate and government relationships, the bank said in a memo to staff on April 11. Stuart will manage the Australian office and run the bank's commodities business in Asia, it said. The contents of the memo were confirmed by Goldman's Hong Kong spokesman Edward Naylor.

''They'll be able to be more responsive and more informed by having Australians on the ground,'' said Nicholas Coles, managing director at East Coles Pty, a financial research organization.

Goldman ranked fourth in advising on takeovers in Australia in the first quarter, behind No. 1 ranking J.P. Morgan Chase & Co. according to Bloomberg Data. Goldman advised on four transactions worth $2.87 billion. In 2001, Goldman ranked 10th in Australia, compared to its No. 1 ranking globally.

''There was a perceived problem in the marketplace that their management was sourced offshore,'' Coles said. It's pretty hard to find your way around the Australian market place without people who've been in it for a long time.''

Aisbitt, who has worked at Goldman for more than 16 years and is the longest-serving partner in Asia, is retiring and will return to Europe. Aisbitt, now 44, ranked number 368 on the Sunday Times list of the 1000 richest people in Britain.

Goldman began to reshuffle its investment banking management in Australia last July when it announced then co-chairman Malcolm Turnbull would leave the company. Turnbull joined Goldman in 1997, and Aisbitt was brought in to beef up the operation in 1999, transporting two vintage sports cars from London to Sydney.

The bank has increased its staff since Walton arrived. In December, Andrew Rickards, a managing director on the bank's communications, media and entertainment team, was transferred to Australia from Hong Kong. Mark Wyrill was also brought in as head of Australian equities.

--Rob Stewart in Hong Kong (852) 2977 6630 and Tansy Harcourt in Sydney, or at r.stewart@bloomberg.net Editor: McDonald, *Mullane, Penna

Story illustration: {GS US <Equity> COMP <GO>} graphs Goldman's share performance against relevant indexes.

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-0- (BN ) Apr/16/2002 9:31 GMT