NSW GOVERNMENT CUSTOMER NEWSLETTER

SECOND EDITION JUNE 2009

Welcome to Telstra’s second newsletter for 2009. This edition provides information on the
following topics: Productivity and Sustainability, Next G™ Mobility and Wireless Broadband, IP
Networks, Customer Case Studies, Conferencing, Collaboration and Convergence, Managed
Services and Security, Online Tools, Telstra Customer Care Accreditation, Telstra Support for
Business, Telstra Community Programs and the Telstra Foundation, and Telstra’s CEO and Group
Managing Director Appointments. We hope you find this update of value.

1. Productivity and Sustainability

Addressing sustainability - Telstra and the WWF-Australia have launched a white paper that
highlights how Information and Communication Technology (ICT) can improve environmental
sustainability for large organisations and deliver positive commercial outcomes. It also introduces
a set of tools to enable Australian enterprise and government organisations to estimate the
environmental and financial benefits of ICT investment. Using the new Return on Investment
(RoI) tools developed by Telstra and Capgemini, organisations can estimate the commercial and
environmental savings from investing in four specific ICT solutions - video conferencing, flexi-
working, web contact centres and field force management. The tools estimate greenhouse gas
emission reductions and employee productivity outcomes by assessing the financial costs and
savings to customers for each alternative. For example:

Video conferencing: A large organisation that spends approximately one million dollars in interstate
travel per year could save 200 tonnes of CO2 per annum by implementing a high-definition video
conferencing service that could be paid off through reduced travel expenditure in around seven months

Teleworking: An organisation with 1800 employees could reduce net greenhouse gas emissions by
approximately 500 tonnes of CO2 per annum by encouraging 200 staff to work remotely from home three
days a week

Web contact centres: A contact centre with 150 employees could avoid approximately 130 tonnes of
CO2 per annum by providing 50 employees with access to an online contact centre system from home for
three days a week. The ICT investment could be paid off through productivity improvements in around 11
months

Fleet and field force management: An organisation with a field workforce of 500 employees could
avoid approximately 600 tonnes of CO2 per annum by adopting a mobile field force management
application on a wireless device. The investment could be paid off through reduced energy expenditure in
around six months, providing annual savings of about 10 per cent

Telstra has made significant investments in world class wireless and IP networks that enable
enterprise and government organisations to leverage such tools. Through Telstra's transformation
program, our customers get access to the Telstra Next G™ and Next IP™ networks that hold the
key to ICT solutions that can improve environmental sustainability for organisations and at the
same time deliver positive commercial outcomes. A full copy of the sustainability white paper can
be found online at http://www.telstraenterprise.com/researchinsights/Pages/Sustainability.aspx

Telstra has also funded research to quantify the impacts of ICT investment on Productivity. A
survey conducted by Sweeney Research on behalf of Telstra surveyed 300 Australian directors,
senior executives and managers in medium to large public and private sector organisations and
found 83 per cent of organisations that attach great importance to improving productivity say that
investing in ICT is a high priority. A full copy of the report can be found online at
http://www.telstraenterprise.com/researchinsights/Pages/TelstraProductivityIndicator.aspx
Telstra’s ‘ICT as a Driver of Productivity’ White Paper can also be found online at
http://www.telstraenterprise.com/researchinsights/Pages/Productivityform.aspx

2. Telstra Next G™ Mobility and Wireless Broadband

Mobility - There will be an additional 141 Telstra Next G™ mobile base stations installed across
the country by the end of June 2009. This is in addition to the more than 6600 Telstra Next G™
base stations already deployed nationally. This investment cements the Telstra Next G™
network’s position as the world’s largest and fastest national broadband network, covering more
than two million square kilometres across Australia and reaching more than 99 per cent of the
Australian population*. This additional $42 million investment will see an improved coverage
experience for many Australians.

Wireless Broadband - Telstra has recently upgraded much of the Telstra Next G™ network to
support peak download speeds of 21Mbps in selected CBD and regional areas and launched the
world’s first 21Mbps peak rated mobile broadband modem, the Telstra Turbo 21*.

1
Using the new Telstra Turbo 21, a high quality x-ray image can be downloaded by a doctor in
about 15 seconds - the potential cost and time savings across the health care industry are
extraordinary. A consumer can access and download an mp3 song in just four seconds or a
YouTube video in just six seconds. Some of our business customers are already seeing
productivity uplifts of up to 30 per cent in parts of their workforces from the Next G™ network by
cutting travel costs and saving time. Using the Telstra Turbo 21 USB Mobile
Card on Telstra's Next G™ network, customers with compatible devices will
experience typical download speeds of between 550Kbps to 8Mbps in
selected CBD, metro and regional areas. Outside selected CBD, Metropolitan
and regional areas, the typical customer experience is 550Kbps to 3Mbps. As
with any wireless service, speeds are affected by many factors, such as location and customer
equipment. The Telstra Turbo 21 USB Mobile Card is Windows Vista and XP compatible and will be
Apple Mac compatible shortly. The Mobile Card easily slips in a pocket and includes an external
antenna, a microSD slot and a 1GB microSD memory card, letting users take their photos and
documents everywhere they take their internet connection.

According to a recent report by Concept Economics, the Next G™ Productivity Impacts study,
industries such as passenger transport, real estate, construction, finance, trade, education and
health in particular benefit from high-speed mobile broadband. The study revealed that high-
speed mobile broadband is cutting costs by reducing the need for travel, saving time and
generating new business. A full copy of the study can be found at
http://www.telstra.com.au/abouttelstra/media/docs/Next_G_Productivity_Impact_Study_FINAL
_130209.pdf

New Mobile Interface - Telstra has announced the introduction of an innovative new mobile
user interface - TelstraOne Experience, giving customers one-click access to the applications and
services they regularly use on their mobile phone. TelstraOne Experience gives customers the
ability to fully customise their mobile phone interface to meet their individual requirements.
Customised icons take customers directly to the most popular applications and services like
phonebook and calendar and social networking and search. TelstraOne Experience delivers on our
one-click vision, giving customers greater control over the services they want to use on their
mobile phone. This means fast, easy access to advanced mobile content and applications including
Facebook, Mobile FOXTEL from Telstra and Sensis® search services. TelstraOne Experience will
initially be available on two mobile handsets, the MOTOSURF" A3100 and the Sony Ericsson
W705. Working with our partners, Telstra has developed this unique user interface to operate at
launch on the MOTOSURF A3100 - a new Windows Mobile® touch-screen handset - and on the
Sony Ericsson W705. Further releases will follow in coming months.

Telstra Next G™ Handsets - Telstra has announced a range of new mobile devices to its Next
G™ range, giving customers access to Australia's largest and fastest 3G national mobile
broadband network covering 99% of the Australian population*. Telstra has a range of Next G™
handset offers for NSW Government customers under GTA Category 3 and 4. Some of the new
Telstra Next G™ devices include:

Nokia E71 which has a full QWERTY keyboard for power email and texting on the go and has 3.6Mbps
downlink data capability*

Nokia N85 which combines a state of the art 5MP camera with an 8GB memory card

Samsung UltraTOUCH (S8300T) which has a fully interactive 2.8" colour touch screen
and a slide-out keypad

The Sony Ericsson W705 is a slick slider handset with a 2.4" LCD screen, a 3.2MP camera
and 4GB M2 memory card for storage. The Sony Ericsson W705 is also Telstra Blue Tick
rated, meaning it is recommended for handheld use in metro, rural and regional areas

The MOTOSURF" A3100 is a stylish touch screen device which combines the power of a Windows
Mobile® operating system. The Motorola A3100 is fully HSDPA enabled with a device peak downlink
speed rating of 7.2Mbps with typical customer download speeds of 550 kbps to 3 Mbps*

The full touch screen LG KM900f Arena which combines a large and vivid touch
screen with 8GB of memory, a 5 megapixel camera and 3-inch WVGA touch screen

Two new Pre-Paid handsets including the Samsung C5220 and the LG KF390, a
slider-design handset with fast mobile internet connectivity. Both handsets carry
the Telstra Blue Tick. The LG KF390 includes the capability to team the handset
with an LG hands free car kit and with a range-boosting car antenna

Telstra will launch the iPhone 3G S, the fastest, most powerful iPhone yet, in
Australia on 26 June 2009. More information on pricing and tariff plans will be
available closer to the launch

*NOTE: To obtain full network coverage on the Telstra Next G™ mobile and wireless broadband
network, a Telstra Next G™ SIM Card must be installed in a Telstra Next G™ handset or Telstra
Next G™ mobile device. Telstra’s mobile coverage is handset, antenna and location dependent.
Speeds represented are network peak downlink speeds. Actual customer download speeds will
vary due to congestion, distance from the cell, local conditions, hardware, software and other
factors.

2
3. IP Networks

ADSL - In regional areas across the country, Telstra is upgrading an additional 421 Telstra
exchanges, offering a further 230,000 homes and businesses high-speed ADSL2+ broadband.
Some of these upgrades have already occurred and all will be completed by the end of October
2009. Telstra’s continued investment in regional Australia is helping to advance the education and
health sectors as well as supporting businesses to boost their productivity. These exchange
upgrades are in addition to the more than 1400 exchanges providing ADSL2+ announced as ready
in April 2008. Telstra’s fixed network provides ADSL speeds at up to 20Mbps* from exchanges
covering over 80 per cent of the population and ADSL from exchanges covering 92 per cent of the
population. *Actual speeds may be slower due to other factors eg. network configuration, line
quality and length, your exchange, your location, internet traffic, your equipment/software.

Telstra receives award for delivering high-speed broadband to

Arnhem Land - Telstra's work to deliver high-speed broadband to over
10,000 people living in remote communities in Arnhem Land, Northern
Territory was recognised at the Australian Telecommunications Users Group
(ATUG) 2009 Excellence Awards. Telstra's Broadbanding the Top End
project received the ‘Best Communications Initiative for large business',
and recognised the partnership between the Northern Territory
Government, Rio Tinto Alcan, the Northern Land Council and Telstra to
deliver the $34 million project in late 2008. This initiative embraced
broadband delivery to some of the most remote communities in the country, across some of the
most inhospitable terrain. The opportunities from the laying of the cable for Indigenous
Australians, for local businesses, for schools, for the mining community, and for health care
centres are significant. For example, health care centres in these communities will be able to use
video conferencing to consult with other parts of Australia, as well as sending scans to test for
diagnosis. The project was a unique multi-party partnership, that installed 800kms of fibre in a
matter of months, providing the first operational services within six months of the project start.

Telstra unveils super-fast cable broadband - Telstra has announced that its hybrid fibre
coaxial cable broadband network in Melbourne will be upgraded to 100Mbps - more than triple the
current peak speed - by December 2009. Using new technology already successfully deployed in
several cable networks overseas, Telstra will immediately begin work to turbo-charge its five-city
cable network. Melbourne is stage one of Telstra's deployment of Next Generation super-fast
broadband technologies into its cable network, which already passes 2.5 million homes in Sydney,
Melbourne, Brisbane, Adelaide and Perth. It will build on the recent BigPond Cable Extreme
upgrade, which already provides download speeds on the cable network of up to 30Mbps available
to 1.8 million homes, with another 700,000 homes having speeds up to 17Mbps.

BigPond - Finding medical, disease and healthy lifestyle information is now easier as Telstra
adds BigPond Health, a partnership with Australia's leading online health site, Virtual Medical
Centre, to the BigPond online network. Since launching BigPond Health in December 2008 it
topped the Nielsen NetView (Dec 08) rankings as number one health site in the country. BigPond
Health provides the latest news and information about diseases, pharmaceuticals, practical
remedies, healthy living and diet tips. The site provides 19 categories with medical information
about prescription drugs, disease information, medical treatment, latest medical trials, latest
medical research, disease symptoms, medical support for patients and latest medical news.
Please note that BigPond Health does not give advice on individual medical conditions. Such
advice should be sought from your doctor.

Telstra’s network of BigPond websites has grown its audience according to the latest Nielsen
Online ratings survey (May 09). The panel survey revealed that BigPond attracted an audience of
3.8 million unique visitors during April 09, which now ranks the portal the third most visited
Australian internet portal. The Nielsen panel ratings do not include unique visitors to Sensis (3.0
million per month) or Telstra.com (1.6 million per month).

4. Customer Case Studies

Commonwealth Bank of Australia Announces New Telecommunications Deal with

Telstra – The Commonwealth Bank of Australia (the Group) has announced it has awarded a 10-
year managed services contract to Telstra ahead of its telecommunications network upgrade. The
Group’s network upgrade will create a future-proof IT&T platform for growth and plays a strategic
role in supporting its Customer Satisfaction goal. Telstra will provide a range of Next G™
telecommunications capabilities and fully managed services to the Group’s branches, contact
centres, EFTPOS network and non-branch ATMs.

3
Telstra will deliver converged communications on the latest internet protocol (IP) capabilities to
provide enhanced customer convenience and accessibility. The agreement, worth up to $100
million per annum, aligns execution with business outcomes to ensure superior network
performance and the provision of services designed to deliver the Group’s customer service and
business objectives. Telstra was selected after a rigorous tender process for its effective
management of existing network assets, the inclusion of new network services and the ability to
provide access to a range of new technologies. Telstra looks forward to leveraging our world-class
Telstra Next IP™ and Next G™ networks to help the bank achieve its transaction and customer
service objectives.

Australian Federal Government Deploys National TelePresence System from Cisco - The
Australian Federal Government is driving global innovation by working with Telstra to deploy a
Cisco TelePresence™ system across more than 20 government offices. The network, the largest
government deployment of Cisco TelePresence, will span thousands of kilometres and reach
across all Australian states and territories. It will help
the Federal Government reduce the cost of travel,
improve productivity and lower the impact of carbon
emissions. Cisco TelePresence creates an "in-person"
virtual experience over a converged network,
delivering real-time face-to-face interactions between
people and places, using advanced visual, audio, and
collaboration technologies. Cisco TelePresence
combines high definition audio quality, interactive
technologies and a specially-designed environment to
approximate the feeling of actually being in the same room as participants in separate locations.

Telstra, a Cisco TelePresence Authorised Technology Provider (ATP) partner, will work with the
Federal Department of Finance to deploy 20 Cisco TelePresence units, including 13 three-screen
Cisco TelePresence System 3000s and seven single screen Cisco TelePresence System 1000s,
linking seven Commonwealth government offices, Prime Ministerial and Cabinet offices,
Parliament House and the offices of Premiers and Chief Minister agencies in every state and
territory. Four sites will be commissioned by June 2009, with the balance deployed by the end of
2009. This Cisco TelePresence solution will provide the Federal Government with highly secure,
life-size high-definition video facilities connecting the governments around Australia. The system
will be used for inter-jurisdictional meetings, including Council of Australian Governments (COAG)
and Ministerial Council meetings. The solution runs on the Telstra Next IP™ network and is
supported by Telstra's Next Generation Services (NGS) division, providing complete management
of the Cisco TelePresence solution from installation, network and services.

TAS Health - In a joint project with its suppliers and the Department of Health and Human
Services Tasmania, Telstra is introducing a new wireless solution enabling nurses to get specialist
medical advice when visiting patients in their homes, known as the Tas Health Collaborative Care
in the Community project. By using a Telstra Next G™ mobile handset, nurses will be able to
conduct real-time video streaming with multiple GPs or health care experts in Tasmania or across
Australia. At the same time the nurse is able to conduct a confidential chat session with the
medical expert while the vision is streaming over the Telstra Next G™ mobile device. The unique
application also uses an innovative mix of Next G™ handsets, vehicle mounted wireless gateways
and high gain antennas to extend coverage in areas with limited mobile reception.

AIMS - The Australian Institute of Marine Science (AIMS) is a federally funded marine science
organisation which mainly studies coral reefs, including the Great Barrier Reef and reefs in South
East Asia. A key component of its research is measuring and monitoring water conditions around
the reefs, to verify their health and identify potential areas of concern. This research requires a
constant flow of data between AIMS’ reef sensors and their research facility at Cape Ferguson in
North Queensland. The traditional solution would have been satellite microwave communications,
but satellite links are expensive to deploy and maintain, especially for an organisation like AIMS
that relies on funding. Sensor buoys containing Next G™ modems were placed at various
locations on the Great Barrier Reef to capture data 24/7 and in real-time, then transmit it back to
land over the Telstra Next G™ network using high gain antennas to boost the signal. From here,
the signal connects to a fixed line IP metropolitan area network on the Telstra Next IP™ network
via a wireless port. The data is then relayed back to AIMS’ research facilities for analysis. Network
capacity can rapidly scale up or down according to the number of sensors. The Telstra Next IP™
network offers AIMS the security of using a virtual private network without the burden of capital
expenditure or ongoing maintenance costs, enhanced security with core product offerings certified
to the international ISO 27001 security standard, and access to the network designed for 99.999
per cent reliability as well as greater scalability, flexibility and resiliance. The Telstra Next IP™
network also connects to Telstra’s global IP network for seamless and secure international
communications.
4
Exit Films - One of 305 small companies surveyed by Concept Economics, Exit Films, used
Telstra Next G™ mobile broadband to collaborate with editors and communicate with the investors
while filming the soon-to-be-released movie 'The Last Ride'. Producer, Antonia Barnard, said
mobile broadband was able to solve logistical challenges caused by the Melbourne editing suite
and shooting locations in the Flinders Ranges being 700 kilometres apart. "Things you take for
granted such as mobile phone coverage and Internet access suddenly become very important. As
a result of using the Telstra Next G™ network we estimate that we saved over $30,000 in costs
and many hours in lost production time as well," she said.

5. Conferencing, Collaboration and Convergence – Telstra SIP Connect

In an Australian first Telstra beamed in executives from Microsoft and Cisco for a High Definition
(HD) Video Collaboration session where they joined Telstra to offer organisations advice on
increasing business success and productivity in these difficult economic times. The interactive
panel session was powered by Cisco TelePresence, Microsoft Unified Communications and the
Telstra Next IP™ network and Next G™ network and connected executives in San Jose (USA),
Sydney and Adelaide. It follows last year's live hologram where Telstra's Chief Technology Officer,
Dr Hugh Bradlow, appeared in a virtual sense to showcase what is now possible using high speed
broadband technology.
Telstra's new Session Initiation Protocol (SIP) Connect solution has been launched. Telstra SIP
Connect is a voice trunking service that connects voice telephony systems to the Telstra Next IP™
network via either an ISDN Interface or Ethernet interface. SIP Connect provides the flexible
capability to support self-paced migration to IP Telephony - whilst maximising the utilisation of
existing CPE until end of life. This allows customers with sufficient bandwidth capacity on their
Telstra IPMAN/WAN to carry their voice and data traffic over a single network, instead of using
dedicated ISDN or PSTN circuits.
The new solution provides our customers' voice CPE, PBX or Key Telephone System with access to
Telstra's PSTN via the Telstra Next IP™ network. This means customers can now leverage the
Telstra Next IP™ network further to deliver immediate benefits such as increased bandwidth
efficiency on their IPMAN/WAN, potential for reduced infrastructure maintenance costs, and on-
net calling between sites connected with Telstra SIP Connect or TIPT services - whilst ensuring
they benefit from the latest technology. SIP Connect is also compatible with TIPT - Telstra's fully
hosted IP Telephony solution. For further information please contact your Telstra-NSW
Government Account Executive. Based on Telstra's review of each customer’s requirements,
current network and CPE, Telstra would provide a proposal which would outline the solution and
investment required and also highlight the benefits that Telstra SIP Connect may provide to your
organisation.

6. Managed Services and Security

Telstra Next Generation Services (NGS) is an integrated portfolio of Professional and Managed
Services, as well as Strategic Network Outsourcing. Telstra offers a wide range of Next Generation
Services for customers based around the following core capabilities: Security, Unified Comms
(UC), Networks, Contact Solutions, Hosting and Storage and Mobility. These services include both
Professional Consulting Services and full end to end Managed Network Services.

Telstra’s Professional Services include Business Continuity and Disaster Recovery, Security Audits
and Certification, UC Consulting, PABX Integration, Network Application and Baseline Service,
Network Audit and Site Survey, Contact Centre Integration and Infrastructure Consolidation and
Virtualisation Planning. Telstra’s range of Managed Network Services include: Managed Security
(Distributed Denial of Service, Managed Firewall, Managed IPS Production and Managed Content
Security), Hosted IP Telephony, WAN optimisation, Managed WAN, Managed Wireless LAN,
Enterprise Speech Solutions, Telstra Network IVR and Web Contact Centre, Managed Facilities and
Managed Computing and Managed Applications.

Telstra is currently providing a Security Vulnerability Assessment to help enterprise and

government customers understand and prioritise their infrastructure and organisational security
requirements. Indicative Pricing for a Security Vulnerability Assessment 20 day engagement with
a Telstra Senior Security Consultant is $40,000 ex GST, subject to agreed terms and deliverables.
Telstra’s broadband and wireless broadband networks* (GWIP, GBIP, Wireless IP) for Government
are accredited to the International Security Standard ISO 27001*, which is an important
consideration for many customers. *Please contact your Telstra NSW Government Account
Executive for full details of Telstra’s ISO accreditation.

5
7. Online Tools from Telstra

Telstra has a number of online tools available to NSW Government customers to provide fast and
effective access to information, while providing a reduction in delivery timeframes for orders and
increasing billing accuracy. Two of these tools include Telstra Mobile Ordering and Management
tool (MOaM), and Telstra’s Managed Billing and Report System (MBRS):

Telstra Mobile Ordering and Management (MOaM) - an easy to use online mobile ordering tool which
enables you to order your organisation's mobile services (voice and data), devices and hardware
accessories online (24/7) and has recently been made available to NSW Government customers on GTA
pricing options. Mobile services or devices can easily be ordered using a shopping cart function. If you
are having difficulty deciding which handset to choose, MOaM can compare different handsets side by
side so your shopping cart selection suits your needs. There is no need to be concerned about handset
availability as MOaM provides you the ‘stock’ status of handsets before you submit your order. MOaM
uses a secure online site and allows you to choose who within your organisation can place orders.
Orders can be checked and tracked at an individual or summary level. Reports can be exported for
ongoing historical purposes

Managed Billing and Reporting System (MBRS) - an easy and effective way to help organisations
manage and monitor Telecommunications expenses through a range of bill management reports with
the ability to drill down by business unit, cost centre and service type. Customers are also able to
easily analyse billing expenditure trends, identify anomalies and highlight exceptions through a suite of
monthly reports. A customised version of MBRS for NSW Government customers also offers a number
of specific benefits including:

The Dashboard - a graphical representation of the selected billing period

Tool Tips - the Tool Tips on the Chargeable Item View now provide a brief description of
each Telstra Product

Search - there is now the function to search by user name / description

4 new reports - Top Items Report, Cost Centre Charge Allocation - Rolling 3 Month, Custom
Product YTD & GTA Product Code

4 reports have been modified - List of Summary Charges, Cost Centre Charge Allocation,
and Account List & Product Type YTD

For further information or to organise a demonstration of these two Telstra Online Tools please
contact your Telstra NSW Government Account Executive or Service representative.

8. Telstra Customer Care Accreditation

Telstra Enterprise and Government’s Customer Care Group has been reaccredited
to International Customer Service Standard (ICSS) certification by the Customer
Service Institute of Australia (CSIA) – the peak customer service organisation in
the country. The ICSS is an internationally recognised tool to review and accredit
a business on their operations and the linkages and alignment with customer
requirements that will stand the attention of international competition and
scrutiny. To gain recertification Telstra Enterprise and Government had to formally
respond to over 90 questions and show improvement since last year in all 29 sections
of the ICSS standard.

9. Telstra Support for Business

Telstra T-Suite service goes live with nine SME software applications - Telstra has
announced that a raft of online software applications will be available to Australian businesses
with the Telstra T-Suite® Software as a Service platform going live across the country. The T-
Suite applications will be available to lease online for a monthly fee and without expensive upfront
licensing fees, meaning businesses can preserve vital cash reserves during the current tough
economic climate. Australian small businesses in all industry sectors will now be able to:

Generate employment agreements and manage everyday staff issues with easy
to use HR processes and templates from Workforce Guardian® that are
updated online to reflect changes in employment law

Help protect their businesses from viruses, malicious Internet attacks and loss of sensitive data with
security tools provided by Telstra, MessageLabs® (now part of Symantec) and McAfee®

Improve collaboration between suppliers, staff and customers with Microsoft® SharePoint, Microsoft®
Exchange Mail and Skoot™, which allows small businesses to securely and quickly send/share large files
too big for email

Automate business processes such as billing, invoicing and document management with software
offered by WORKetc and access Microsoft Dynamics® CRM software

A business simply goes to www.telstra.com/T-SUITE, selects the application they would like to
use in their business and signs up.

6
The software applications are available 24/7 and automatically updated with the latest versions.
Most applications are available for a free month trial. Telstra is currently in talks with up to 50
local and international software vendors. T-Suite applications gives Telstra the scale to help
thousands of small businesses properly prepare themselves for the massive changes in
employment laws recently passed by the federal Parliament and ensure they are kept constantly
up to date with any modifications to the laws. Prices for T-Suite applications start from as little as
$4 per user per month for desktop security; $16.95 for email; $14 for data back per service per
month and collaboration software starts at $7.95 (storage space per month).

Telstra Business Centres - Telstra has announced the opening of 67 new Business Centres
around Australia providing local face-to-face help for organisations. 37 are planned to open by
the end of 2009 and a further 30 next year. The new Business Centres demonstrate the latest
technology solutions to help small and medium-size enterprises (SMEs) access the latest
technology and become more efficient. Specially trained staff will be on hand to give live
demonstrations and take the complexity out of buying communications technology. The 7 new
Telstra Business Centres in NSW include Parramatta and West Sydney Merrylands, New England /
North West NSW Tamworth, Eastern Suburbs Sydney Paddington, South West Sydney Macarthur
Square, Strathfield/ Burwood City Rhodes, Central Coast & Hunter Valley and Newcastle East
Maitland, Lower North Shore Sydney North Sydney.

Telstra Business Awards - The 2009 Telstra Business Awards and 2009 Telstra Business
Women’s Awards are now underway. Telstra Business Awards have recognised the achievements
of small and medium enterprises (SMEs) across the country since 1992. Last year's national
winner from NSW was Machinery Automation and Robotics' (MAR). Businesses will be judged on a
range of criteria including growth, customers, people, innovation and financials, and Award
winners will share in up to $400,000 in cash and prizes. In 2009, there are five award categories.
Businesses will enter one of three qualifying categories, based on the size of their business. The
Telstra Business Women’s Awards Program has recognised more than 400 exceptional business
women since its inception in 1995. There are State/Territory Awards and National Awards. The
2008 Telstra Business Woman of the year was Leanne Wesche, owner of Pacco Group.

10. Telstra Community Programs and the Telstra Foundation

Telstra assistance package for customers affected by North Queensland Floods,

Victorian bush fires and Northern NSW and South-East Queensland flood waters and
storms - Telstra has provided assistance packages, on a range of Telstra services to its affected
customers. Some of these included free call diversions, mobile calls charged at fixed line rates,
monthly service fees waived, one-off credits for pre-paid and post-paid mobile customers and free
connection of a Telstra fixed phone and BigPond service within a twelve-month period. Telstra's
contribution to the Victorian Bush Fire Appeal, managed by the Red Cross was $1.5m. The final
donation included $750,000 from Telstra Corporation Limited – a $500,000 straight donation and
a capped $250,000 matching of staff donations – as well as over $752,000 from direct staff
donations, for a total donation of $1,502,290.

About the Telstra Foundation - The Telstra Foundation is a program devoted to making a
positive and lasting difference to the lives of Australian children and young people.
Since 2002, the Telstra Foundation has provided over $29 million through more than
5,500 projects to help make a positive and lasting difference to the lives of children
and young people. The following programs have been recently announced for
funding:

Program to help doctors manage youth mental health – a program that uses mobile phones to track
the mental health of young people suffering depression will be evaluated through funding from the
Telstra Foundation to see if it is suitable to treat youth depression nationwide. Following the
successful world-first pilot of mobiletype developed by the Murdoch Childrens Research Institute
(MCRI), the Telstra Foundation has committed a Social Innovation Grant worth $285,000 over two
years as part of its ongoing community investment commitment. The mobiletype pilot assisted
doctors to help treat 14 to 24-year-olds with mental health concerns through the use of mobile
phones. The program monitored each young person's mood, stress levels, coping strategies, alcohol
and cannabis use, exercise, eating patterns and general lifestyle factors

New child abuse education and support program - a new online education program that aims to help
children develop skills to manage their safety online and prevent child sexual abuse in primary
school-aged students will be developed by the University of the Sunshine Coast thanks to a three-
year $483,000 grant from the Telstra Foundation. The project will develop a freely-accessible, online,
best practice resource. It will help children learn strategies, through game-based activities, for
positive self-management and protection online, and sexual abuse prevention. It will also put into
place the programs, structures and skills to provide equal and free access to sexual abuse prevention
education and support to all children across Australia

7
 • The Telstra Foundation has doubled funding used to keep young people safe from online threats like
cyber-bullying when they use the Internet and mobile phones. The Foundation will now donate a
further $3 million towards its Spotlight on Cyber Safety program in 2009, bringing to $6 million the
value of its investment in youth cyber safety over six years. This announcement comes during
National E-Security Awareness Week from 6 June to 13 June, which promotes the importance of
staying smart online. Telstra Foundation Chairman and Olympic gold medallist, Herb Elliott, AC, MBE
said the funding would allow children and young people to enjoy using technology, while empowering
them to protect themselves them from the dangers present in the digital world

• Helps seniors click with technology – the latest round of grants have now closed for Telstra
Connected Seniors® to fund programs which help older Australians learn to use technology to stay
connected to their families, friends and communities. Not-for-profit community organisations with a
primary member base of people over the age of 60 are eligible to apply. Grant amounts range up to
$5,000 for local organisations and up to $50,000 for state and territory organisations. Programs that
receive funding may incorporate tasks such as paying bills and shopping online, organising social
events using SMS, and staying in touch with grandchildren through email and video calling. Since the
program's inception in August 2007, Telstra has invested over $980,000 in 148 organisations

• Community Groups to Share $150,000 in Grants - 222 clubs, societies and other not-for-profit
organisations will share in $150,000 of Community Connection grants by the Telstra Foundation. The
grants recognise Telstra employees' involvement and leadership in community organisations, by
supporting the groups where they volunteer. Telstra Foundation Chairman and former Olympic gold
medallist, Herb Elliott, AC, MBE, said the grants demonstrate the importance the Telstra Foundation
places on the outstanding contribution made to community groups by Telstra employees, who are
among the 5.4 million Australians who volunteer every year. Telstra Foundation launched the
$460,000 Community Connection fund in 2008

The 2009 Telstra Assistance Fund was launched in April and offers local AFL, NRL, Swimming and
Surf Live Saving clubs the chance to access a share in $1m worth of sporting equipment. The
Fund has already contributed over $6 million worth of sporting equipment to more than 5000 AFL,
NRL, Swimming and Surf Life Saving clubs nationally, since its inception in 2003.

11. Telstra CEO and Group Managing Director Appointments

On 20 May 2009, David Thodey, Telstra's former Group Managing Director of Telstra
Enterprise and Government, commenced as Telstra’s new Chief Executive Officer. Mr
Thodey, 54, has been a senior executive at Telstra for eight years. He joined Telstra
from IBM where he was CEO of IBM's Australian and New Zealand operations. In his
former position, he was responsible for Telstra's corporate, government and large
business customers in Australia, TelstraClear in New Zealand and Telstra's
international sales division. Telstra’s Chairman, Ms Livingstone said: "David Thodey's
selection as CEO is testament to the depth of talent within Telstra's executive ranks. He was
chosen from among an outstanding group of internal and external candidates. The board felt
David has a unique combination of a fundamental grasp of technology and a deep appreciation of
customer needs”.
David Thodey has announced that Nerida Caesar has been appointed Group Managing Director,
Telstra Enterprise and Government. Nerida commenced this role on 9 June 2009. Nerida joined
Telstra in August 2006 as Managing Director for Integrated Accounts, responsible for sales and
service to Qantas, NAB, Westpac, Woolworths and Australia Post. An IT professional with more
than 20 years experience, during her long tenure with IBM Nerida held positions in Sales and
General Management and was Vice President of IBM's Intel Server Division for Asia Pacific.
David Thodey has also announced the appointment of Paul Geason to Group Managing Director,
Telstra Wholesale, effective 30 June 2009. Paul has been Executive Director, Convergent Sales,
Telstra Enterprise and Government, since returning to Telstra in August 2006.
Kate McKenzie has been appointed Group Managing Director of Strategic Marketing, which
manages Telstra's corporate pricing, strategy, mergers and acquisitions, marketing, advertising
and sponsorship functions. Kate has been in this role since 30 March 2009. Prior to that, Kate was
the Group Managing Director of the Telstra Wholesale business unit in Telstra, a position she held
for a little over three years.
On behalf of the Telstra-NSW Government Account Team we would welcome the opportunity to
discuss any of these areas in further detail and look forward to working with you and your staff.

Yours sincerely

Paul Mitchell, Group Manager, NSW Government, Telstra Enterprise and Government
M: 0438 005 610| B: 02 9396 1990 | F: 02 9267 3720 | E: paul.mitchell@team.telstra.com, 320 Pitt Street Sydney 2000
Telstra Enterprise and Government website: http://www.telstraenterprise.com/Pages/Home.aspx, http://telstra.com
8