TELSTRA GROUP LIMITED — M&A Activity 2004

Oct 21, 2004

22 October 2004

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

Offer from King Win Laurel International Limited

Telstra received on 18 October 2004 an unsolicited offer from King Win Laurel International Limited a company incorporated in New Zealand to acquire all the shares in Telstra Corporation Limited including those shares held by the Commonwealth of Australia. This offer has received some coverage in the media in recent days.

Telstra has had no previous contact or dealings with King Win Laurel International Limited. The offer would appear to face a number of insurmountable hurdles including the provisions of the Telstra Corporation Act that require the Commonwealth of Australia to hold at least 50.1% of the shares in Telstra and that no individual foreign person or company holds more than 5% of the non-Commonwealth owned shares in Telstra. The offer does not meet the requirements of the Corporations Act with respect to takeovers and appears likely to be a hoax.

Yours sincerely

North brake

Douglas Gration Company Secretary

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