TELSTRA GROUP LIMITED — Capital/Financing Update 2005

Mar 9, 2005

10 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 upgrades ADSL network with \$210 million investment

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

Yours sincerely

North brake

Douglas Gration Company Secretary

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

Media Release

10 March 2005

092/2005

Telstra upgrades ADSL network with \$210 million investment

Telstra is well on the way to making its national broadband ADSL network ready for future high-speed customer services with a \$210 million deployment of the latest broadband on copper wire technology, $ADSL2+$ .

Since January this year, Telstra has been installing ADSL2+ hardware and software to provide additional broadband capability in its exchanges. ADSL2+ is an international standard configuration and technology that provides speeds up to 20 times faster than the typical broadband services over copper networks that are available today.

Telstra Chief Executive Officer, Dr Ziggy Switkowski, said: "Telstra continues to upgrade its networks to meet expected customer demands for much higher speed internet access.

"The next generation broadband services and product packages that will take advantage of ADSL2+ speeds of up to 12 Megabits per second are in development. These services would typically include ondemand video over broadband, as well as very high speed internet access."

At the 2005 ATUG Conference today, Telstra Managing Director, Data and Online, Mr Andrew Johnson, said: "Telstra has and will continue to install technology that delivers the services our customers want in a timely manner.

"By mid 2005, 200 exchanges covering about 500,000 premises will have ADSL2+ capability at a cost of \$60 million. We have budgeted a further \$150m in financial year 05/06 for the purchase and installation of ADSL2+ technology and coverage will rapidly increase so that by mid-2006 nearly all ADSL-enabled exchanges will have ADSL2+ capability."

Mr Johnson said that the ADSL2+ technology would also be available to Telstra wholesale customers.

He added that when Telstra launches the services that need the higher capability of ADSL 2+, existing customers on ADSL services would be transferred to the new technology when they purchase new $ADSL2+$ delivered products and an appropriate $ADSL2+$ modem.

"It is important for our customers to note that our consumer products using existing ADSL technology will continue to efficiently support the current mass consumer market demand for broadband internet access and email." Mr Johnson said.

Telstra has been actively involved in developing the Australian Communications Industry Forum (ACIF) Codes that will define ADSL2+ deployment standards, which are required before carriers can launch ADSL2+ services. It is expected the ACIF Codes will be established mid-year.

Telstra Media Contact:

Patrick O'Beirne Tel: 03 9634 2864

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