TELSTRA GROUP LIMITED — Capital/Financing Update 2007

Mar 26, 2007

27 March 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 due to Prepayment

Telstra advised that following prepayment of 93,153,895 instalment receipts on 13 March 2007, the total number of instalment receipts (TLSCA) on the register now stands at 4,154,895,295.

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

Yours sincerely

Port braking

Douglas Gration Company Secretary