AXA ASIA PACIFIC HOLDINGS AND
ALLIANCE CAPITAL SIGN
MEMORANDUM OF UNDERSTANDING
TO FORM ASSET MANAGEMENT ORGANIZATION

Melbourne, Victoria, Australia and New York, NY, USA - 23 October, 2000:
AXA Asia Pacific Holdings Limited (“AXA Asia Pacific”) (ASX: AXA AU) and Alliance Capital Management L.P. (“Alliance Capital”) announced today they have signed a Memorandum of Understanding whereby they intend to establish new asset management companies in Australia and New Zealand.
AXA Asia Pacific and Alliance Capital Management each will own 50 per cent of the equity of each new company and will have equal representation on the Boards. Alliance Capital will have day to day responsibility for operational management of the companies which will be named Alliance Capital Management Australia and Alliance Capital Management New Zealand. The companies initially will manage approximately A$23 billion consisting of approximately A$17bn of AXA Asia Pacific assets and A$6bn of Alliance Capital assets. The operations will be based in Sydney, Melbourne and Wellington.
AXA Australia and New Zealand will be responsible for distribution, product development and marketing in retail markets under the AXA brand. Alliance Capital Management Australia and New Zealand will be responsible for institutional and sub-advisory funds using the Alliance Capital brand.

Chief Executive Officer of AXA Asia Pacific Les Owen, said “Asset management is increasingly a global activity and this restructuring of our operations in Australia and New Zealand will enable us to leverage the scale and capability of Alliance Capital, which is part of the global AXA Group - the world’s fourth largest asset manager. By bringing together the world class asset management skills of Alliance Capital and the distribution, product and marketing strengths of AXA Australia and New Zealand, a new and more powerful proposition will be available to both retail and institutional investors in the Australian and New Zealand markets.”
Mr. Owen, commented, “The relationship announced today with Alliance Capital represents an important step in the growth strategy of AXA Asia Pacific. This partnership is critical to our aspiration to be a leader in investment and superannuation markets and gives AXA’s clients in Australia and New Zealand access to world class asset management capability and great depth of global equity and fixed interest expertise through Alliance Capital's 530 investment professionals world-wide. At 30 June 2000, Alliance Capital had approximately US$388 billion in assets under management and Sanford C. Bernstein Inc. (“Bernstein”) had US$82 billion in assets under management.
“Alliance Capital has built a remarkable position in the global financial markets as a result of its commitment to research driven performance which is reflected in its funds under management, its product style range, its innovative funds management approach and global investment management capability. Making this capability available in the Australian and New Zealand markets is a significant step forward for us. AXA’s 1,300 advisers will be able to offer a full array of investment choices to help retail investors meet their long–term financial goals.”
In describing the Australian market, Dave H. Williams, Chairman of Alliance Capital, commented “Australia has developed a true savings culture, spurred on by its retirement savings programs, such as the superannuation regime. To maximize returns to customers, distributors need to offer the best products available, and I genuinely believe that this combination will more than meet the need.”
Bruce W. Calvert, Chief Executive Officer of Alliance Capital, remarked, “The combined strengths of Alliance Capital's superior long-term investment performance across a broad range of investment disciplines and AXA's experience in insurance, savings and investment product design, marketing and distribution should provide an outstanding platform for investment management solutions for Australian and New Zealand based retail clients. The expanded Alliance Capital operations in the Australian and New Zealand markets will strengthen our global reach, better serving our worldwide institutional and individual clients.”
Michael Bargholz will serve as the Chief Executive Officer of Alliance Capital Management Australia and Alliance Capital Management New Zealand, reporting to Kathleen A. Corbet, Executive Vice President, Alliance Capital LP and Chairman of Alliance Capital Australia and New Zealand.
The non-binding Memorandum of Understanding is subject to, among other things, the receipt of Board of Directors approvals, the negotiation and execution of definitive agreements, the receipt of certain client consents, regulatory approvals, and certain other conditions precedent to closing. The parties anticipate signing a definitive agreement in the quarter ended 31 December, 2000.

About AXA Asia Pacific
AXA Asia Pacific is a subsidiary of the Paris based global AXA Group and is listed on the Australian and New Zealand Stock Exchanges, with 49% ownership by private and institutional investors. AXA Asia Pacific is Australia's second largest life insurer, provides life, health and other insurance services, superannuation, savings, funds management and investment products to customers in Australia, New Zealand and Asia through more than 1,300 AXA advisors. It has assets under management in excess of A$25 billion and operates within six markets in the region.

About Alliance Capital
Alliance Capital is a leading global investment management firm. On 2 October, 2000 Alliance Capital acquired the assets and business of Bernstein. Bernstein is a highly regarded manager of value style investing with superb research capabilities. Bernstein currently manages U.S. equity assets amounting to A$1.7 billion for Australian-based clients.
Alliance Capital is the largest manager of actively-managed U.S. equity assets for U.S. pension funds and non-profit organizations. Alliance Capital provides investment management services for many of the largest U.S. public and private employee benefit plans, foundations, public employee retirement funds, pension funds, endowments, banks, insurance companies and high net worth individuals worldwide. Alliance Capital is also one of the largest mutual fund sponsors, with a diverse family of globally distributed mutual fund portfolios.
Alliance Capital Management Holding L.P. (NYSE: AC) owns approximately 30% of the units representing beneficial ownership of limited partnership interests in Alliance Capital. AXA Financial, Inc. owns partnership interests in Alliance Holding of 2% and in Alliance Capital of 53%, amounting to an approximate 53% economic interest in Alliance Capital. AXA, which has operations in approximately 60 countries, currently holds a 60% interest in AXA Financial, Inc.

CONTACT INFORMATION:
AXA Asia Pacific:

Investors: Robin Burns (+613) 9616 3631


Media: Simon Morgan (+613) 9618 4944

Alliance Capital:

Investors: Karen Caddick (212) 969-6414 (within the U.S.)
1-212-969-6414 (outside of the U.S.)

Media: Tariq Ahmad (+44) 207-470-0100
(London Office)