OPTUS TO SELL FOXTEL DIGITAL IN NEW SUBSCRIPTION TV DRIVE

FOXTEL and Optus announced today they had reached an agreement for Optus to commence selling the FOXTEL Digital service. The agreement will add fresh reinforcement to the growing roll-out of FOXTEL Digital and revised terms were endorsed by the FOXTEL Board today. FOXTEL Chairman Bruce Akhurst said: “The take-up of FOXTEL Digital since launch 12 months ago has been very strong and the FOXTEL Board has decided today to encourage that continued roll-out. We have agreed to revised terms to the original 2002 Content Supply Agreement for Optus to offer its existing customers to the FOXTEL Digital service and to refresh its commitment to the subscription TV category. "This is a pro-competitive outcome that provides even more options for Australian consumers. And importantly, this deal is both commercially attractive and equitable for Optus and FOXTEL". Under the agreement, Optus will invest in the upgrade of its cable network to offer its customers the full complement of services within FOXTEL Digital (over 100 channels of programming with unique and popular interactive features) including the FOXTEL Digital guide and the FOXTEL iQ, the recently-launched FOXTEL personal digital recorder. It will also act as a non-exclusive agent for FOXTEL Digital in areas where it does not have its own cable. FOXTEL Chief Executive Kim Williams said: “FOXTEL is delighted to have Optus’ commitment to FOXTEL Digital through this new strategic partnership. FOXTEL Digital is a superb consumer entertainment and information service and this arrangement will have very positive outcomes for consumers and the way they can choose to take their services". Optus Chief Executive Paul O'Sullivan said: “We are delighted to be able to provide Optus customers with access to FOXTEL Digital services. Digital television will strengthen our telephony and internet offerings and give consumers even more reasons to bundle with Optus." "We now look forward to working closely with FOXTEL during the implementation phase and to making product announcements once these plans are complete.” This new digital agreement between FOXTEL and Optus is an extension of the Content Supply Agreement that commenced in 2002. Mr Williams said: “FOXTEL is moving to its next phase of development after the successful launches of FOXTEL Digital and the FOXTEL iQ over the last 12 months. This partnership is part of a re-energised marketing outlook in the provision of FOXTEL Digital to Australian consumers. That focus will be seen in FOXTEL’s terrific new campaign with Hugh Jackman later this month.” FOXTEL launched its Digital service in March 2004 offering viewers the choice of more than 100 channels, interactive services and expanded viewing options, including digital quality pictures and sound on their existing television sets. FOXTEL Digital features include, FOXTEL Box Office - a near-video-on-demand movie service, Sky News Active (offering 8 different news screens simultaneously), Sports Active on selected live NRL, AFL, Rugby Super 12s, tennis, NBL and cricket broadcasts, interactive voting, Weather Active, an electronic program guide and closed captioning for the deaf and hearing. The FOXTEL iQ, launched in February 2005, is a personal digital recorder that enables subscribers to pause live television while watching FOXTEL Digital, record two shows at once while watching a previously recorded program and watch recorded programs with DVD like functionality. For further information contact: Mark Furness FOXTEL Corporate Affairs 02 9200 1733 Melissa Favero Optus Corporate Affairs 02 9342 5030