TELSTRA GROUP LIMITED — Capital/Financing Update 2009

Mar 1, 2009

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02 March 2009

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 General Enquiries 08 8308 1721 Facsimile 03 9632 3215

ELECTRONIC LODGEMENT

Dear Sir or Madam

Telstra Corporation Limited is announcing that it has entered into an agreement to divest 100 per cent of the shares in KAZ Group Pty Ltd

According to the listing rules, Telstra Corporation Limited is announcing that it has entered into an agreement to divest 100 per cent of the shares in KAZ Group Pty Ltd to Fujitsu for A$200 million, subject to regulatory approval from the Australian Government.

Attached is a copy of a media announcement being made today.

Yours sincerely

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Carmel Mulhern Company Secretary

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

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M E D I A R E L E A S E

For Immediate Release

FUJITSU TO ACQUIRE KAZ GROUP PTY LTD FROM TELSTRA CORPORATION LIMITED

Sydney, Australia - 2 March 2009: Fujitsu, a leading provider of business, information technology and communications solutions, has entered into an agreement to acquire 100 percent of shares in KAZ Group Pty Ltd from Telstra Corporation Limited for A$200 million, subject to regulatory approval.

This investment confirms Fujitsu’s commitment to invest in and grow its Australian business as well as boost Fujitsu’s position in the Australian market. This acquisition will make Fujitsu the third largest IT company, by revenue, with a team of nearly 5,000 across the country.

The strength of KAZ’s existing business and the synergies it brings to Fujitsu will deliver new and exciting commercial opportunities.

Fujitsu’s expanded customer base and enhanced end-to-end capabilities also bring a new level of competition to the Australian market creating better value for existing and future customers.

The deal also creates a strategic alliance between Fujitsu and Telstra Enterprise & Government that builds on the existing working relationship and provides new opportunities in the Australian market.

With a strong track-record working with Australian governments, particularly at the state level, the acquisition of KAZ gives Fujitsu enhanced service capabilities for Federal public sector opportunities and a strong physical presence in Canberra.

“The acquisition is in line with Fujitsu’s long-term objectives to grow its Australian business,” said Mr. Richard Christou, Fujitsu’s Corporate First Senior Vice President and President of Global Business Group.

“The deal brings together two strong businesses and creates an IT services and technology leader that will deliver a broader range of consulting, application and infrastructure services to our Australian customers, as well as the local subsidiaries of our Global clients,” Mr. Christou said.

A differentiating feature of the Fujitsu business in Australia has been the local leadership team headed by Fujitsu Australia and New Zealand CEO, Mr. Rod Vawdrey. Uniquely, Fujitsu has engaged home grown talent with global expertise to deliver essential IT services to Australian State and Federal agencies as well as leading corporate clients.

Telstra Enterprise & Government Group Managing Director, Mr. David Thodey said Telstra was selling KAZ because it no longer considered ownership of an IT services business as a core part of its strategy.

“Telstra will continue to deliver centralised network services to our customers through our Network Enterprise Services business.”

“However, we will also continue to look for opportunities to work with Fujitsu in the delivery of IT Services.”

Mr. Thodey said Telstra would work with KAZ’s clients in the days and weeks ahead to ensure a smooth transition to KAZ’s new owner.

“This acquisition is all about growth and job security for a strengthened Fujitsu / KAZ business. We are financially strong and we continue to grow,” said Mr. Vawdrey.

For Immediate Release

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M E D I A R E L E A S E

“It will ensure the retention of local expertise and will enhance our ability to present a strong local footprint in the Australian market.”

“Our most important priority moving forward is to assure our team and our valued customers that it is business as usual with a continued focus on delivering service excellence,” said Mr Vawdrey.

About Fujitsu

Fujitsu is a leading provider of IT-based business solutions for the global marketplace. With approximately 160,000 employees supporting customers in 70 countries, Fujitsu combines a worldwide corps of systems and services experts with highly reliable computing and communications products and advanced microelectronics to deliver added value to customers. Headquartered in Tokyo, Fujitsu Limited (TSE:6702) reported consolidated revenues of 5.3 trillion yen (US$53 billion) for the fiscal year ended March 31, 2008. For more information, please see: www.fujitsu.com

About Fujitsu Australia and New Zealand

Fujitsu Australia and New Zealand is a leading service provider of business, information technology and communications solutions. Throughout Australia and New Zealand we partner with our customers to consult, design, build, operate and support business solutions. From strategic consulting to application and infrastructure solutions and services, Fujitsu Australia and New Zealand have earned a reputation as the single supplier of choice for leading corporate and government organisations. Fujitsu Australia Limited and Fujitsu New Zealand Limited are wholly owned subsidiaries of Fujitsu Limited (TSE: 6702).

For more information about Fujitsu Australia and New Zealand partners or other solutions and offerings please visit: www.fujitsu.com/au/ or www.fujitsu.com/nz

About Telstra

Telstra is Australia's leading telecommunications and information services company, with one of the best known brands in the country. We offer a full range of services and compete in all telecommunications markets throughout Australia, providing more than 9.2 million Australian fixed line and 9.7 million mobile services, including 5.2 million 3G services. We provide integrated telecommunications services across our vast geographical coverage through both our fixed and mobile network infrastructure.

Fujitsu Media Contacts:	Trent Mumford	+61 412 115 400
	Dan Bleakman	+61 439 408 484
Telstra Media Contact:	Peter Taylor	+61 439 031 996