13 July 2004

The Manager

Company Announcements Office Australian Stock Exchange 10th Floor, 20 Bond 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

SENSIS EXCEEDS FY 04 TARGETS

In accordance with the listing rules, attached is a media announcement and analyst briefing for release to the market.

Yours sincerely

Pont Gration

Douglas Gration Company Secretary

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

FOR IMMEDIATE RELEASE

SENSIS EXCEEDS FY 04 TARGETS

Strong core business growth maintained, reinforced by continuing diversification of the Sensis business

Tuesday 13th July, 2004: Sensis Pty Ltd, the wholly-owned advertising subsidiary of Telstra Corporation Ltd, today announced it had exceeded all key financial and operational targets last financial year, delivering core business revenue of \$1.31 billion (7.6 percent growth) and total portfolio revenue of \$1.36 billion after recent acquisitions. A strong focus on costs saw total EBIT for the underlying business increase by 8.2 percent from \$620 million in financial year 2003 to \$671 million in financial year 2004. Underlying EBITDA growth was 11.5 percent last financial year.

Sensis expects to continue to deliver sustainable revenue growth in excess of six percent from its underlying business for financial year 2005.

Mr Bruce Akhurst, Sensis Chairman and Group Managing Director Telstra Wholesale, Broadband and Media, said Sensis achieved excellent results last year, further diversifying its business and consolidating its position as a leading Australian local advertising and commercial search company that continues to maintain strong growth in its core directory businesses.

"Sensis continues to make a significant contribution to Telstra, contributing approximately six percent of total Telstra underlying sales revenue and approaching ten percent of total Telstra underlying EBIT in financial year 2003.

"The Sensis management team has an impressive track record in executing an aggressive growth strategy, and Telstra is committed to further supporting and investing in Sensis. Sensis' deep, local Australian content complements Telstra's distribution capabilities, is a key driver for online and broadband uptake, and an important player in Telstra's broader content strategy."

Sensis' financial results were announced by Mr Akhurst and Mr Andrew Day, Sensis Chief Executive Officer, at a market briefing in Sydney today. The briefing outlined Sensis' strong execution capabilities, with the company exceeding all key financial, strategic and operational objectives outlined last year. Impressive growth was achieved in all of Sensis' core businesses last financial year through a continued focus on product innovation, sales and go-to-market effectiveness, and tactical execution.

Mr Day said: "Our Yellow Pages® print directory business recorded its best sales growth in three years, with revenue growth of four percent. The Yellow Pages® OnLine results were out-standing, with revenue increasing by 63 percent and Yellow Pages^® OnLine customer numbers doubling to 35,000. White Pages^® product growth was equally impressive, with revenue for the print directory increasing by 14.5 percent. Significantly, we now have more than 100,000 White Pages^® OnLine paying customers. Collectively, the Sensis print business grew by 5.6 percent last financial year.

"Our smaller, stand-alone online and electronic businesses – the Whereis^® and CitySearch^® products and the Sensis MediaSmart® online advertising network - collectively achieved 20 percent plus growth. Sensis' total online and electronic business grew by more than 40 percent," said Mr Day.

Regarding acquisitions. Mr Day said that as part of its local advertising and search strategy. Sensis acquired a leading, Australian classified advertising business, The Trading Post Group (TPG), in March this year with the aim of leveraging its core capabilities and experience in directory advertising to further grow this very successful business.

"We're delighted with the progress we've made since we acquired TPG. We achieved on plan performance last financial year, which demonstrates that the business has continued to grow strongly since acquisition. We are currently implementing a clear plan to deliver strong double digit revenue growth from TPG and, with Sensis synergies, an EBITDA of \$64 million this financial year. We've also achieved some great "quick wins"; for example, profitably increasing sales resource, cross-selling and product bundling with the Sensis sales force, and increasing underlying online usage," said Mr Day.

Sensis has established a new national, company structure for TPG to significantly lift further its classified advertising growth, with specialist national functions now complemented by strong local sales and production.

Mr Day added: "We have also confirmed and identified new synergies, mainly in the areas of information technology, online capabilities, product, sales, marketing and call centres. This financial year, we will accelerate stand-alone growth in all of TPG's classified advertising categories, with a small increase in circulation revenue growth, and strong, double digit revenue growth in private classifieds, professional classifieds and display."

Mr Day also announced the very successful performance of a new commercial and residential online real estate portal, justlisted.com.au. JustListed™ is currently focussed in Sydney where its inventory includes over 42,000 rental and sale properties and 1,670 real estate agents who have JustListed™ software installed. Sensis is exploring ways to further leverage this highly valuable asset into a national, online real estate portal.

"As part of the integration process of TPG with the wider Sensis business, we have repositioned the TPG business - which also consists of the Trading Post®, Autotrader™ and Just Listed™ brands, and the Zest for Life Magazine - into a new business unit called Sensis Classifieds with a long-term vision to be the first choice in Australian classifieds.

"In short, Sensis has a clear strategy for growth from our strong, underlying businesses, our recently acquired Trading Post Group and majority stake in the Invizage Technology company, and from our unique search solutions, in particular sensis®1234 (a premium voice service) and sensis.com.au (a new commercial search engine). The launch of sensis®1234 and sensis.com.au has moved us one step closer towards establishing Sensis an icon consumer brand - one that is synonymous with search. Or as we say, Sensis® - All you need to know™," said Mr Day.

During the briefing, Sensis unveiled its highly anticipated search engine, sensis.com.au, which creates a global benchmark and a completely new paradigm in commercial search.

Mr Greg Ellis, General Manager Sensis Search said: "Today's launch of sensis.com.au has completely redefined the future search space. Unlike traditional search engines, sensis.com.au lets everyday Australians access fully blended results across local proprietary content and global internet content. We believe Sensis is the first directory company in the world to do this. From now on, search will be about relevant and quality search results as opposed to volume and irrelevant results".

"Now, regardless of whether people are searching for a local florist in Bondi or a pair of shoes in New York, they can go to sensis.com.au to conduct local, commercial and global searches and get blended results from local Yellow Pages^®, White Pages^®, CitySearch^® and Whereis^® data
combined with global web content. Over time, we'll also include Trading Post^® content to further enhance the user experience," said Mr Ellis.

The Sensis search portfolio also includes sensis®1234, the recently launched premium operator assisted voice service, that allows callers to receive information and be connected to most residences and businesses in Australia.

Mr Day concluded by saying that the cornerstone and secret to the company's success was Sensis' continued focus and commitment to its people and customers. Customer satisfaction improved ten percent last financial year and, within Sensis, their employees constantly rated up to 10 percent higher than the Australian average on key satisfaction measures. As an example, more than 85 percent of Sensis' people understand the company's business direction, which is 30 percent above the Australian norm.

-ends-

* All FY 2003/04 financial results quoted in this release are unaudited management estimates and subject to Telstra's close of accounts process.

About Sensis Pty Ltd

Sensis is a leading Australian advertising and search company. We deliver innovative and integrated search solutions via print, online, voice and wireless channels to connect Australians 24 hours a day, seven days a week. Our powerful, multichannel portfolio provides an unparalleled local information source incorporating: the White Pages® and Yellow Pages® directories; the CitySearch® lifestyle site; the Whereis® location and navigation database; and Sensis Classifieds, comprising of the Trading Post®, Autotrader™, Just Listed™ products and the Zest for Life Magazine.

Sensis is the advertising subsidiary of Telstra Corporation Limited. The Sensis Group employs over 2,300 people directly and an additional 800 people are employed in Sensis Classifieds (formerly The Trading Post Group). Sensis' 420,000 customer base is further augmented by the thousands of people who buy and sell goods in Sensis Classifieds' stable of weekly and monthly classifieds publications.

Sensis also has a majority shareholding in Invizage Technology, one of Australia's market leaders in IT services to small and medium sized enterprises. ® and $\bar{m}$ - registered trade mark and trade mark of Telstra Corporation Limited