The Australian Securities and Investments Commission
(ASIC)has announced that it has concluded its investigation of
Telstra in relation to
suspected contraventions of the continuous disclosure provisions of the
Corporations Act 2001 by Telstra during the period 11 August to 6
September 2005.

A senior Telstra executive gaveg part of a
confidential briefing paper to representatives of the media in the week
commencing 15 August 2005. The briefing was intended only for certain
members of Parliament and their staff.

ASIC does not propose to take any enforcement action

While ASIC’s investigation will not result in court
action, ASIC is concerned that some of Telstra’s disclosure procedures
create potential risks to its ability to meet its continuous disclosure
obligations in the future.

ASIC also announced it had no intention of questioning any members of the Australian Parliament in respect to its investigation of Telstra.