OPTUS APPOINTS M2 AS WHOLESALER OF MOBILE SERVICES TO TELCO RESELLERS

Melbourne, May 31, 2006. M2 Group Limited (ASX: MTU) announced today it had signed an agreement with (ASX: SGT) to wholesale Optus mobile services to existing and emerging telecommunications service providers.

The alliance will see M2, through its Wholesale Telecommunications Services Pty Ltd (“WTS”) subsidiary; bring its considerable expertise as a full service telecommunications provider to the wholesaling of Optus mobile services, to the raft of existing and emerging telcos interested in reselling Optus mobile services.

David Katz, acting Manager Director of Optus Wholesale said, “Optus is committed to the wholesale telecommunications market within Australia and this partnership enables us to service and broaden our footprint in the largely untapped segment of mobile wholesalers. Optus looks forward to working with M2 in providing Optus mobile services - this partnership will enable M2 to demonstrate its knowledge to this niche of telco service providers.”

M2 was appointed an Optus Enhanced Service Provider in 2005 to supply retail mobile services under the “M2 Mobile” brand.

Vaughan Bowen, M2’s Managing Director and CEO said, “This is a very significant commercial alliance for M2 and builds on our already close relationship with Optus. M2 and Optus have already identified a number of prospective wholesale customers who have expressed a strong desire to take advantage of the excellent network coverage and mobile product suite offered by Optus. We anticipate some of these customers are capable of generating mobile connections that would represent considerable growth”.

“Our first objective is to develop a stable of reputable wholesale customers, which will serve as the foundation for the future success of WTS. WTS is expected to contribute considerably to M2 consolidated earnings in the 2006/7 financial year and continue to post solid growth in subsequent years,” Mr Bowen said.

Optus currently provides wholesale services to M2 including mobile, fixed voice and data services.

ENDS

About Optus Optus is one of Australia’s leading integrated communications companies The company provides a broad range of communications services including mobile, national and long distance services, local telephony, business network services, and satellite services and subscription television.

Since commencing operations in 1992, Optus has invested more than $10bn in the construction of fixed, mobile and satellite networks, including central business district and suburban local access networks. These networks provide the company with an advanced technology platform capable of delivering integrated communications, information and entertainment services.

Optus became a 100 per cent owned subsidiary of SingTel on August 30, 2001 and listed on the Australian Stock Exchange on 10 September 2001. SingTel is one of the leading stocks on the ASX and is the number one stock on the Singapore Stock Exchange

About M2: M2 Telecommunications Group Limited (ASX : MTU) is a network independent provider of fixed line, mobile and data telecommunications services Australia wide. M2 offers a suite of unique bundled telecommunications services and value added offerings that are distributed through an exclusive national network of sales dealerships and agencies.

The company has demonstrated strong growth in both revenue and profit year-on-year for each of the last 5 years and was named by BRW as one of Australia’s fastest growing companies in 2003, 2004 and 2005 and on the Deloitte Technology Fast 50 in 2004 and again in 2005. M2’s balance sheet is free of debt and boasts sizable cash reserves. M2 has an established dividend policy, with high yield franked dividends being paid over the last 2 years. For further information please visit: www.m2.com.au

For further information:

Monsoon Communications Simon Schweigert Tel: (03) 9620 3333

M2 Telecommunications Darryl Inns – Company Secretary Tel: (03) 9524 7520 or Vaughan Bowen – Managing Director & CEO Tel: (03) 9524 7555

Optus Corporate Affairs Simone Bergholcs Tel: (02) 9342 7846