Telecom Corporation of New Zealand – Adjusted NZFOX Equity Options under Capital Return with Share Cancellation

Participants are advised that the following adjustment applied for NZFOX equity options over the Telecom Corporation of New Zealand as per the method set out earlier under SFE Notice 99/07 dated 8 August 2007. This was in relation to the reconstruction of capital where 1 in every 9 ordinary shares was cancelled in return for NZD$4.88 for each ordinary share cancelled.

The effective date for the adjusted ZP contracts is on the ex-date Monday 24 September 2007.

For purpose of the ETO adjustment, the last cum-return VWAP (as earlier defined) on 21 September 2007 as determined by SFE was NZ$4.410319.

Therefore, the old contract size of 1000 shares has been adjusted to 1,013 and the adjusted strike price was calculated using a multiplying factor of 1000/1013 =0.987167.

The new contract size and strikes are as follows:

Participants seeking further information in relation to this Notice should contact:

Business Development enquiries – Effie Tsiaousis on 612 9227 0164 or effie.tsiaousis@asx.com.au

Operational enquiries – SFE Service Desk on 612 9256 0677 or service.desk@asx.com.au

Effie Tsiaousis
Product Development Executive
Equity Markets
ASX Limited
20 Bridge Street
Sydney NSW 2000
Australia