TELSTRA GROUP LIMITED — Capital/Financing Update 2007

Oct 9, 2007

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10 October 2007

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

Decrease in Telstra Instalment Receipts on Issue

Telstra advises that as a result of prepayments of Instalment Receipts in August, September and October 2007 the total number of instalment receipts (TLSCA) on issue now stands at 4,123,343,403.

Please note that no new Telstra (TLS) securities have been issued.

Yours sincerely

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Claire Elliott Acting Company Secretary

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