Date issued: 13 Oct 2008

NATIONWIDE BUILDING SOCIETY AGREES TO STRENGTHEN CAPITAL

As announced on 8 October, Nationwide welcomes the UK Government's package of financial support measures.

Nationwide is a well funded organisation with a robust and strongly capitalised balance sheet. It has a tier one capital ratio of 9.7% (as at 4 April 2008), which is in excess of the requirements under the UK Government's banking sector scheme announced last week and one of the highest in the financial services sector.

We have no current need for additional capital. However, given our support for the Government's initiative to stabilise market conditions, we have agreed to an increase in our capital base of £500 million. This is a prudent step which reflects unprecedented market conditions.

It is our intention to raise this additional capital through normal market channels between now and our financial year end.