TELSTRA GROUP LIMITED — M&A Activity 2011

Dec 22, 2011

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23 December 2011

Company Announcements Office Australian Securities Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000

Dear Sir or Madam

AUSTAR UNITED COMMUNICATIONS LIMITED (ASX: AUN):

Please find attached an announcement from AUSTAR regarding approval from the Foreign Investment Review Board.

Yours faithfully

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Deanne Weir Company Secretary

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23 December 2011

Media Release

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LGI & FOXTEL Receive FIRB Approval

On the 11th of July 2011 AUSTAR United Communications Limited (ASX: AUN) (AUSTAR) announced that it had entered into definitive transaction agreements with Liberty Global, Inc. (LGI) and FOXTEL Management Pty Limited (FOXTEL) under which FOXTEL will acquire AUSTAR by a series of transactions including a scheme of arrangement (Scheme).

The 11th of July announcement noted that the Scheme is subject to a number of conditions including approval from the Foreign Investment Review Board (FIRB). FOXTEL and LGI, the applicants to the FIRB process, have now advised AUSTAR that FIRB approval has been received.

However, while the Treasurer approved the proposal under the Government’s foreign investment policy and the Foreign Acquisitions and Takeovers Act 1975, in giving his approval, the Treasurer noted that his decision does not prejudice the ACCC's consideration of the proposal.

The Scheme remains subject to a condition precedent in relation to competition law requirements and a number of other conditions including: (i) AUSTAR shareholder and court approvals; and (ii) other customary conditions for a transaction of this nature.

ENDS

Media Contacts:

Deanne Weir M +61 (0) 402 865 300 E dweir@austar.com.au

Austar United Communications (AUSTAR)

www.austarunited.com.au

AUSTAR (Australian Stock Exchange “AUN”) is a leading provider of subscription television services in regional and rural Australia, with more than 750,000 customers enjoying satellite digital television services. AUSTAR is also a significant provider of programming in the Australian television market through its 50% owned joint venture, XYZnetworks, which owns and/or distributes Nickelodeon, Nick Jr, Discovery Channel, Channel [V], [V]Hits, MAX, Arena, The Lifestyle Channel, Lifestyle Food, LifeStyle You, Country Music Channel and The Weather Channel. Liberty Global, Inc., the largest international broadband cable operator in terms of subscribers, holds an indirect controlling stake in AUSTAR.