OPTUS REALIGNS FOR THE FUTURE

Optus announced today it would realign its business structure to have a clear, single-minded focus on delivering a superior customer experience. The realignment will see Optus have four customer facing divisions: Optus Consumer; Optus Small and Medium Enterprise (SME); Optus Business; and Optus Wholesale & Satellite. Paul O’Sullivan, Optus Chief Executive, said the change positioned Optus to leverage the opportunities in the new era of telecommunications convergence and make it much simpler for customers to do business. "The four new customer facing business units will maximise the Optus customer experience. We will have a greater focus on leveraging integrated products and solutions as well as enhancing our customer care capabilities,” Mr O’Sullivan said “This new structure has been designed to create a nimble and fresh approach. We are renowned for our high quality customer experience – and we see this getting better.” Each division will deliver a full range of fixed and mobile telephony products and services to its target market segment. Allen Lew the current head of Optus Mobile will head the new Consumer division. Optus SME will service small and medium enterprises. Scott Lorson, the current acting Managing Director for Consumer & Multimedia, will lead this division. The existing Optus Business and Optus Wholesale & Satellite divisions will be allocated some additional mobile responsibilities. Optus Business will expand to include mobile sales and marketing. Optus Wholesale & Satellite will include wholesale mobile sales and marketing. “Our current structure has served us well - but with market changes such as growing broadband penetration and growing fixed-to-mobile substitution, customers are increasingly demanding integrated telecommunications packages,” Mr O’Sullivan said. “From today, the Managing Directors of each division will work to appoint their management teams, and review the structures of their divisions. “We expect the new structure will deliver efficiencies, as areas of duplication and overlap are removed. As a result of this review, there will be some reduction in the number of management overall. “The review will be completed by the end of June with the new structure up and running from 1 July,” Mr O’Sullivan said. Note to Editors:

• Optus’ current market facing divisional structure has remained substantially unchanged since 1998.
• A project team was created in 2004 to explore the opportunities and to find a structure that would be optimal as market conditions change and strategies evolve.
• Optus’ commercial business unit leaders following the realignment are:

* Peter Kaliaropoulos is leaving Optus mid-year – an internal and external search is currently underway for his replacement. John Simon will be acting Managing Director for Optus Business from 2 May until an appointment is made.