Media Release, 10 April 2012

Telstra welcomes the ACCC’s statement that it will accept undertakings provided by FOXTEL and clear the merger between FOXTEL and AUSTAR.

The ACCC’s clearance of this merger was the last material outstanding condition precedent to the completion of the agreement between FOXTEL and AUSTAR. Federal Court approval for the AUSTAR shareholder vote is now required for the merger to complete.

Rick Ellis, Group Managing Director Telstra Digital Media, said this decision was a win for consumers:

“The merger between FOXTEL and AUSTAR will create a pay TV company that will be able to provide innovative content for customers across Australia.”

“It will also enable Telstra to expand its FOXTEL on T-Box offering into some AUSTAR areas over time, enabling regional Australians in those areas to enjoy the same high quality IPTV services as those who live in metropolitan areas.

“Telstra will provide further detail on its plans to expand the availability of FOXTEL on T-Box at a later date.”

Telstra’s contribution to this transaction will be in the form of a subordinated shareholder note. The provision of this loan is excluded from Telstra’s cashflow for guidance purposes.