PARIS, April 8 /PRNewswire/ --     Telstra and Alcatel-Lucent (Euronext Paris and NYSE: ALU) today
demonstrated a new 9,000 kilometre submarine cable that will dramatically
increase Internet capacity between Australia and the United States.

The new cable, which will be landed at Tamarama Beach this week, can be
scaled up to 1.28 Terabits per second capacity between the two countries. At 
full capacity of 1.28 Terabits per second the cable is capable of carrying
160,000 concurrent high definition television channels.

"The explosion of user-generated online content means we need more
capacity than ever before with the United States, which is already the
destination for two-thirds of all Australian traffic on the internet," Ms
Kate McKenzie, Group Managing Director, Telstra Wholesale, said today.

"This cable is the largest ever built and owned by an Australian company.
It's another example of Telstra investing to ensure Australia can enjoy the
health care, education and productivity benefits made possible by high-speed
broadband technology," Ms McKenzie said.

Alcatel-Lucent began laying the cable between Sydney and Hawaii earlier
this year. Work will continue to lay the cable across the Pacific Ocean to
Hawaii, and the cable will be operational by end-2008. From Hawaii the cable
will interconnect with the new Asia America Gateway cable and other existing
cables providing direct access to the mainland United States.

Hilary Mine, Alcatel-Lucent's Managing Director Australasia and North
Asia, said this new project strengthens its enduring relationship with
Telstra.

"As Telstra's wireline partner, Alcatel Lucent is delighted to celebrate
this latest milestone in dramatically enhancing Australia's communications
capacity," Ms Mine said.

The increased capacity means Telstra's retail and wholesale customers
will enjoy:

- higher Internet speeds and greater security when they access
information from the United States on Telstra's Next G(TM) network and
through BigPond, and when they use services such as telecommuting and
videoconferencing

- an expanded range and quality of services for business customers
including advanced multimedia and e-commerce applications, and more
intelligent network services.

Ms McKenzie said that Telstra first invested in Next G(TM) wireless
broadband and ADSL2+ fixed broadband, and now we are investing in undersea
cables to give our customers the best experience possible.

"All of these investments are occurring where there are benefits for
customers, and where Telstra can make a commercial return on its investment,"
Ms McKenzie said.

About Telstra

Telstra Corporation Limited is Australia's leading telecommunications and
information services company, with one of the best known brands in the
country. Telstra is the only true media communications company in Australia
that can provide customers with a truly integrated telecommunications
experience across fixed line, mobiles, broadband (BigPond(R)), information,
transaction and search (Sensis(R)) and pay TV (FOXTEL(R)). Telstra's
international businesses include CSL New World Mobility Group, one of Hong
Kong's leading mobile operators; TelstraClear Limited, the second largest
full service carrier in New Zealand; Reach Ltd, a provider of global
connectivity and international voice and satellite services and SouFun
Holdings Limited, a leading real estate and furnishings website in China. By
using an integrated suite of network and media assets, Telstra is creating a
world of 1-click, 1-touch, 1-command, any screen solutions that are
integrated, operate in real-time, and are simple, easy and valued by
customers.

About Alcatel-Lucent

Alcatel-Lucent (Euronext Paris and NYSE: ALU) provides solutions that
enable service providers, enterprise and governments worldwide, to deliver
voice, data and video communication services to end-users. As a leader in
fixed, mobile and converged broadband networking, IP technologies,
applications and services, Alcatel-Lucent offers the end-to-end solutions
that enable compelling communications services for people at home, at work
and on the move. With operations in more than 130 countries, Alcatel-Lucent
is a local partner with global reach. The company has the most experienced
global services team in the industry, and one of the largest research,
technology and innovation organizations in the telecommunications industry.
Alcatel-Lucent achieved revenues of Euro 17.8 billion in 2007 and is
incorporated in France, with executive offices located in Paris. For more
information, visit Alcatel-Lucent on the Internet:
http://www.alcatel-lucent.com

Web: http://www.telstra.com