TELSTRA GROUP LIMITED — Capital/Financing Update 2010

Apr 13, 2010

Sydney Hong Kong Shanghai Singapore

CXN acquires leadi n g Asian data business from Telstra In t ernational

• Provides significa n t organic growth for CXN

• Strengthens blue c hip customer base

• Provides CXN wit h its own data centre

• Provides opportu n ities for CXN and Telstra International to c o -operate on joint projects

• Margin growth th r ough reduced reliance on third party provi d ers

• Provides entry int o the South East Asian market

• Makes an immedi a te contribution to CXN’s earnings

• CXN’s annualised revenue now approaching $25 million

Sydney: Connxion Ventures Limited (ASX: CXN) today announced that it ha s entered into an agreement to acquire the b usiness, assets, and customer contracts of KA Z Singapore from Telstra Singapore Pte Ltd, a business 100% owned by Telstra Corporation Li m ited (ASX: TLS). The transaction is subject t o a number of final agreements and is expected to be completed next month.

The business provides dat a management, IT infrastructure support ser v ices, call centre operations, IT outsourcing a nd support to a range of international blue chip corporations operating in South East A s ia, and will provide Connxion with a new r e curring revenue stream.

The business is forecast to generate significant revenue in FY2010 and will make an immediate contribution to C XN’s earnings from the date that the acquisition is completed.

The data centre will allow C X N to internally house its core data services, w h ich are currently outsourced to IBM and oth e r data centres. CXN will be able to reduce its d ata centre costs and significantly increase m a rgins on a number of its key contracts that use t hese services.

CXN’s Chief Executive Offic e r, Bill Brooks said, “This acquisition provides CXN with a major growth opportunity. It p r esents us with significant organic growth o pportunities, it strengthens two of our ke y verticals – data and online services, expands our presence in Asia, and strengthens our b lue chip customer base. It also provides oppo r tunities for CXN and Telstra International to co-operate on joint projects.

“We will be working with K AZ SG’s customers on integrating their contra c ts into CXN. We expect they will be very e ncouraged by our capabilities, our team, a n d the range of additional services we can b ring to them.“ A further upside for CXN is th e organic growth opportunities the business brings and the cost savings we can deliver to our existing operations. We can now confidently offer all of KAZ SG’s services to our e x isting customers and we already have a num b er of opportunities well underway.

“We can also consolidate o u r call centre operations into one office and in-s o urce data centre operations, which togethe r will reduce CXN’s overall cost base. The o v erall integration process is nearly complete a nd KAZ SG will soon operate seamlessly as part o f CXN.

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Sydney Hong Kong Shanghai Singapore

“This transaction marks another important step in CXN’s growth and provid e s us with the inhouse technologies and ser v ices to significantly accelerate our revenue gr o wth. Annualised revenue is now $25 millio n and we are still in the very early stages of o ur growth” Mr. Brooks said.

The purchase price has no t been disclosed and the acquisition will be fu n ded from funds raised from CXN’s recent ca p ital raising. From completion, the business will t rade as CXN not KAZ.

Management will provide updates in the coming weeks of the strate g ic and financial benefits arising from the ac q uisition.

Connxion Ventures Strateg y “Unleashing Customer Intelligence.”

CXN invests in and offers a co m plete data and transaction solution to clients that ra n ges from online document creation and delivery to payments, loyalty and rewards programs. CXN is positioned for continuous growth as companies are increasingly adopting these data and transacti o n related services to generate greater ef f iciencies and grow their business in this new and ch a llenging environment.

Media Relations Contact:

Ben Jarvis m: 0 413 150 448 e: b en@sixdegreesmedia.com.au

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