AUSTAR

1
AUSTAR

• John Porter, Chief Executive Officer
• November 2006

2
AUSTAR has a unique market position

• Near monopoly position across 2.5 million homes
• no cable or viable broadband-based tv
  competition
  
• locked-in rights for exclusive programming key
  satellite platform
  
• Repackaging, pricing and bundling set to ignite
  growth
  
• Currently at 24 penetration, adding 2-3 of
  penetration per year
  
• Repackaged in October, 2006 PDR to launch in 1H
  2007
  
• 2009 triple play TV/wireless data/Telephony
  (over IP)
  
• Scalable business model, underpinned by
  operational excellence
  
• Spectrum ownership gives WiMAX broadband option
• own substantially all WiMAX spectrum throughout
  regional Australia
  
• possible access to Government subsidies for
  expanded network

3
The latest results shines with best residential
growth since launch of Digital

• Total TV subscribers 590,987 (Q3 net gain
  20,109)
  
• Total revenue up 11 to A129m
• Gross Margin up by 13 EBITDA up by 7
• Despite residential rate increase, churn remains
  low at 1.15 - down from 1.28 in Q2 FY06
  
• ARPU up to 69.41 (an increase of 4.4), assisted
  by the
  
• 3 residential rate increase
• Increased penetration in residential additional
  outlets to 23
  
• Finalisation and payment of capital return to
  shareholders
  
• of 16 cents p/share.

Subscriber growth continues momentum
Churn remains low
Ongoing ARPU growth
Completion of capital management strategy
All comparisons refer to Q3 FY06 vs Q3 FY05
unless otherwise stated
Earnings before interest, tax,
depreciation and amortisation - excluding stock
based compensation expense and share of associates
4
Subscriber growth and churn figures continue
strong trend
2nd consecutive quarter of more than 20,000 net
gain
Churn continues downward trend -
reaching lowest level for 2006
Net gains and Total Subscribers (000)
Monthly churn
5
Year to date Profit up 35 to 61m
Earnings before interest, tax,
depreciation and amortisation - excluding stock
based compensation expense and share of associates
6
New growth strategies for TV are developing
rapidly
Objective Stimulate customer growth and
penetration
Initiative Repackaging (Q4)
Objective Stimulate ARPU increase average
customer life
Initiative MyStar PDR (07)
Objective Provide consumers with great value
Initiative True bundles (07)
Objective Demonstrate benefits of subscription
platform
Initiative HD TV (08)
Smart Bundles
Simple Broadband
Must have TV
Cheap voice
7
and quality programming creates a virtuous cycle
of investment growth
Locally produced content
International marquee content
Platform
The Pub with One Beer Bills Food The Outback Ca
fe
Entourage
Rockstar Supernova
Camp Orange
UEFA Champions League
Love My Way
American Chopper
Great BBQ Challenge
Customer
Channels
MUST HAVE TV
Dora the Explorer
Battle of Long Tan
Footballers Wives
Australias Next Top Model
Content
Deadwood
Sessions
The Daily Show with Jon Stewart
Fox Sports 3
8
Strategic options extend to broadband

• WiMAX developing momentum worldwide
• Intel and Motorola US900m investment
• Sprint/Nextel selecting WiMAX for 4G
• Rapidly developing WiMAX eco-system, from
  chipset manufacturers to CPE providers to
  retailers
  
• Meanwhile, AUSTARs full rollout plan will take
  into account developing opportunities
  
• 600m capex funding available from Broadband
  Connect
  
• Finalisation of RFP with WiMAX manufacturers

9
Looking ahead

• Momentum in core business to continue in 2007
• New Repackaged AUSTAR Digital launched recently
  in Q4
  
• Greater Flexibility, Choice More Options
• More compelling price point (36.95 entry
  product) with an introduction offer of 29.95
  
• MyStar to launch 1H07 showcasing the benefits
  of personalising your TV experience
  
• Broadband Connect original RFP submission was
  due 30th November extended till 18th December
  
• Continuing to leverage unique and exclusive
  content
  
• XYZnetworks strong performing content portfolio
• Continuing strong ratings performance from
  Lifestyle and Lifestyle Food
  

Love My Way
Great BBQ Challenge
Entourage
NEW Fox Sports 3

10
AUSTAR

• John Porter, Chief Executive Officer
• November 2006

11
Appendix Summary of Terms

• ARPU
• Recurring residential subscription revenue for
  the period divided by the average number of
  residential television
  
• subscribers, divided by the number of months in
  the period. ARPU is expressed on a per month
  basis.
  
• Churn
• Number of account holders whose service is
  terminated during the period, less those accounts
  which are restarted
  
• within 30 days of termination, divided by the
  average number of Subscribers for the period,
  divided by number of months
  
• in the period. Churn is expressed on a per month
  basis.
  
• Commercial Equivalent Basic Unit (EBU)
• Calculated by dividing recurring monthly
  commercial revenue by a basic residential
  reference rate of 40.86
  
• EBITDA
• Earnings before interest, tax, depreciation and
  amortisation - excluding stock based compensation
  expense and share
  
• of associates.
• Operating expenses
• Sum of Operating, General and Administrative
  Expenses, foreign exchange gain or loss and
  management fees.