TELSTRA GROUP LIMITED — Capital/Financing Update 2005

Mar 16, 2005

17 March 2005

The Manager

Company Announcements Office Australian Stock Exchange
4^th Floor, 20 Bridge Street SYDNEY NSW 2000

Office of the Company Secretary

Level 41 242 Exhibition Street MELBOURNE VIC 3000 AUSTRALIA

Telephone 03 9634 6400 Facsimile 03 9632 3215

ELECTRONIC LODGEMENT

Dear Sir or Madam

Telstra announces successful Swiss Franc 300 million bond issue

In accordance with the listing rules, I attach an announcement for release to the market.

Yours sincerely

North bruk

Douglas Gration Company Secretary

Telstra Corporation Limited ACN 051 775 556 ABN 33 051 775 556

Media Release

17 March 2005

Telstra announces successful Swiss Franc 300 million bond issue

Telstra today announced the successful issue overnight of a Swiss Franc 300 million, eight year fixed rate bond in the Swiss domestic market.

Telstra's Chief Financial Officer, Mr John Stanhope, said this was a significant transaction for Telstra as it marked Telstra's return to the Swiss market shortly before its existing seven year Swiss bond matures in June.

"We were keen to re-visit the Swiss market and were pleased to take advantage of the strong investor interest and excellent pricing on offer following our recent successful \$A bond issue," he said.

"The Swiss market is an ideal market for us at this point because it provides good diversification, efficiently priced funding, and is ideally suited to the size required to complete our annual program. In addition it provides execution certainty and is based on our standard debt issuance program documentation."

Mr Stanhope said this now completed Telstra's planned \$2.5 billion 2004/2005 borrowings ahead of schedule demonstrating the high degree of acceptance of the Telstra name in the global debt markets

The bond issue was led by Credit Suisse First Boston supported by a panel of international and Swiss regional banks. The bond is expected eventually to be placed with a range of Swiss institutional buyers and numerous retail accounts.

The proceeds of the issue, which will be swapped into \$A (giving approximately A\$325) million), will be received late April and used for general corporate funding purposes and to refinance maturing long-term debt.

Telstra is rated $A+ (S\&P)$ , A1 (Moody's) and $A+ (Fitch)$ and all ratings have a stable outlook.

Telstra Media Contact Kerrina Lawrence Telstra Media Relations 03 9634 5611 0419 352 313

Telstra's national media inquiry line is 13 1639 and Telstra's Media Centre is located at: www.telstra.com.au/communications/media

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