TELSTRA GROUP LIMITED — Capital/Financing Update 2011

Jul 4, 2011

ASX Announcement

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5 July 2011

Quickflix Commercial Terms Relating to BigPond Movies Agreement

SYDNEY: As previously advised Quickflix Limited (ASX: QFX) has entered into an agreement with Telstra in relation to Telstra’s BigPond Movies DVD rental business which is closing on 30 September 2011.

Quickflix’s funding of the payments under this transaction will be staged through to March 2012, and will be part of normal business activities given that:

• the variable payment for BigPond Movies DVD customers transferring to Quickflix is within Quickflix's target cost range for organic customer acquisition;

• subscribers transferring from BigPond Movies DVD to Quickflix will be immediately generating revenue; and

• the content library acquisition is within the budgeted range of capital costs for content acquisition and will form part of Quickflix's plan to significantly increase its content library in the period ahead. Through ongoing investment and the BigPond Movies DVD library acquisition Quickflix expects to more than double its library in the next six months.

The transaction will leave Quickflix in a strong position in the online DVD rental market, and well positioned for the next stage of its expansion.

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For more information, please contact:

Stephen Langsford Founder & Executive Chairman Quickflix Limited Ph +61 8 93474944 stephen@quickflix.com.au

About Quickflix

Quickflix’s vision is Entertainment you want, whenever you choose . Our mission is to become a major entertainment brand in Australia and attract a million customers within five years. Today we are Australia's leading online DVD rental subscription company with almost 50,000 movies, TV series, documentary and sporting titles across 400 genres. Members add titles to their Quickflix Queue online. DVDs are then automatically selected from the Queue and delivered in Quickflix’s special individual postage-paid envelopes arriving within one day to most of Australia. Watch the DVD and return it in the Quickflix replypaid envelope provided and the next DVD on the Queue is delivered. There are no due dates or late fees. Subscription plans start from $9.99 per month and members can cancel anytime. Quickflix’s network of distribution centres in Sydney, Melbourne, Brisbane, Perth, Adelaide and Hobart handle service the whole of Australia.