TELSTRA GROUP LIMITED — Capital/Financing Update 2003

Apr 8, 2003

9 April 2003

Company Announcement

AUSTAR completes sale of shares in TelstraClear

Austar United Communications (AUSTAR) announced today that, further to its announcement on 12 March 2003, it has completed the sale of its shares in New Zealand company TelstraClear Limited to Telstra Corporation. The sale was completed following receipt of approval from the NZ Overseas Investment Commission.

AUSTAR Chief Executive Officer John Porter said, "We would like to wish everyone at TelstraClear all the best for the future. We are proud to have played an important role in bringing new services to New Zealand consumers, and we are looking forward to continuing our focus on delivering choice and innovation to regional Australians."

$-$ ends $-$

For further information: Deanne Weir Group Director, Corporate Development and Legal Affairs Austar United Communications Telephone: 02 9394 9897 or dweir@austar.com.au