OPTUS LAUNCHES AUSTRALIA'S FIRST COMBINED PHONE AND BROADBAND CAP

Optus signalled today a major attack on the fixed telecommunications market with the launch of Optus Fusion - Australia’s first combined phone and broadband cap.

For one fixed price per month, customers who sign up to an Optus Fusion Cap will get unlimited local and national calls; unlimited calls to Optus mobiles; fast broadband with no excess download charges; and included line rental.

Warren Hardy, Managing Director, Optus Consumer said Optus Fusion allowed consumer and small business customers the freedom to make calls combined with enjoying high-speed broadband for one fixed price each month.

"Optus Fusion is a powerful demonstration that Optus is committed to offering new and existing customers sensational value, while we continue to grow our fixed subscriber base and improve our scale on the Optus network.

"The fixed line market can now enjoy the type of competition that the mobile market has enjoyed for some years. Caps allow people to use their services more, for a fee that is well below what most people would be paying today," Mr Hardy said.

There are three different Optus Fusion Caps to suit differing customer needs:

• $69 per month - telephony package + $0 modem and 2GB broadband data
• $89 per month - telephony package + $0 modem and 7GB broadband data
• $99 per month - telephony package + $0 wireless modem and 20GB broadband data

"We asked our customers what they wanted and they told us - one price for broadband and telephony. They also wanted the freedom to make unlimited calls locally and nationally - we are providing even greater value by including unlimited calls to Optus mobiles.

"We have heard our customers and we have delivered - these caps are fantastic news for consumers and small businesses.

"We're confident that when customers compare Optus Fusion with what they are getting from their provider today, the choice will be clear," Mr Hardy said.

Optus Fusion is available to customers on our Optus Direct (Unbundled Local Loop) network and on Optus' cable network. Optus Direct is planned to reach 366 exchanges by the end of the 2008 financial year. When completed, 3.9 million Australian homes will be able to take advantage of the new Optus Fusion caps.

Optus will begin a national advertising campaign for Optus Fusion on Sunday, 15 July 2007 focusing on the theme 'we hear you'. The plans will be offered through Optus sales channels including Optus World and Optus 'yes' Shops.

Note to Editor:

• Optus Broadband delivers super fast speeds of up to 20Mbps for customers connected to the DSL Direct network and up to 9.9Mbps for customers connected to the Optus Cable network.
• Optus Broadband customers can also take advantage of Optus Internet Security Suite - a suite of online security services for PCs which includes Anti-Virus, Anti-Spyware, Firewall, Anti-Spam and Parental Control. The suite is free for the first 12 months to all Optus Consumer and Small Business Broadband customers who obtain their security suite subscription number by 31 May 2008 and download and install the suite. The free 12-month subscription commences when the subscription number is issued.
• Optus recently announced the next evolution of the Optus brand, launching a new campaign with the wehearyou.com.au website.
• In May 2006, Optus made a breakthrough in home telephony by offering home phone plans with no line rental.

Media contacts:
Luisa Ford, Optus Corporate Affairs – (02) 9342 5045
Tracy Monkman, Optus Corporate Affairs – (02) 9342 5302