TELSTRA GROUP LIMITED — Capital/Financing Update 2006

Jan 30, 2006

Commander and Telstra Wholesale sign extended agreement

SYDNEY, Australia, 31 January 2006 - Commander Communications Limited (ASX: CDR) and Telstra Wholesale today announced they had extended and rationalised their long-term standing contracts, enabling Commander to continue receiving Telstra Wholesale's services to deliver cost effective and improved communication solutions to businesses.

The expanded deal includes an agreement on mobile terminating access rates, provision of fixed voice services, mobile wholesale service provision and a broader range of data services. The specific commercial terms are subject to confidentiality undertakings.

Commander's Managing Director, Mr Adrian Coote, said: "This mutually beneficial commercial outcome is a result of the good relationship between the two companies - a relationship from which our customers will gain advantage. A new range of enhanced bundled products and services will be the benefit along with our existing wide range of communications solutions spanning voice, data, mobility and network based products and services."

Commander continues to develop innovative product and services sets for its 360° communications strategy. The company sources leading communications technology from around the world to assemble the best solutions for Australian businesses.

Telstra Wholesale Group Managing Director, Ms Kate McKenzie, said: "The relationship Wholesale enjoys with Commander has remained strong and mutually beneficial from its inception nearly 10 years ago. This new agreement underscores the continuing goodwill between our companies."

Commander is delighted with the commercial outcome and reiterates its market guidance for 2006.

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About Commander

The Commander business has been tailoring information communications and technology solutions to meet Australia's business needs nationally for over 20 years. Commander began with office telephone systems and through a series of strategic acquisitions and relationships with leading technology companies, has broadened its expertise to provide a complete communications solution spanning voice, data, mobility and network products and services. In addition to a full range of products, Commander has one of the largest business-dedicated technical forces in Australia. More information is available at www.commander.com

About Telstra Wholesale

Telstra Wholesale is Australia's leading full service wholesaler of innovative telecommunications solutions and network capacity. As part of Telstra Corporation, Telstra Wholesale offers its customers not only the latest in telecommunication solutions and services, but also the reach and reliability of Telstra's vast network infrastructure, known in Australia for its coverage, interoperability and reliability. Telstra Wholesale is continually developing and evolving its extensive range of dedicated wholesale solutions-voice, wireless, internet and data-for use in both the Australian and international markets.

CONTACTS

Commander Communications Limited Adrian Coote Managing Director 02.9030.1737

Telstra Wholesale Rod Bruem 02 9206 0092, 0438 288 010