THERESA GATTUNG TO CONCLUDE ROLE AS TELECOM CEO

2 February 2007

The Board of Directors of Telecom New Zealand and Theresa Gattung announced today that after seven years in the role, Ms Gattung will leave her position as Chief Executive and Director of the company, effective on 30 June 2007.

Telecom Chairman Wayne Boyd said Theresa Gattung had led the company during a period of unprecedented change in the telecommunications sector.

“Her 12 years with the company started with the $5 Call which revolutionized the way New Zealanders talked to each other, and lately she has overseen a major strategic shift to make Telecom the number one IT services company in New Zealand.

"We thank Theresa for her dedication to Telecom. She has built and maintained a high performing team culture throughout the company, and her energy, passion and intellect will be missed. In the three years I have worked with Theresa on the Telecom Board I have come to have a great deal of respect for her.”

Ms Gattung said that it had been an honour to serve as CEO of Telecom.

“This is a dynamic company in a complex industry. It’s a sector with a great outlook. It has been a privilege to work in a company that is at the heart of such exciting change.

“I am proud of the team I have worked with and I thank them for their support over all my time with the company.”

Mr Boyd said a search for a new CEO would start immediately and candidates would be sought from within the company and from New Zealand, Australia and globally.

An update on the CEO search will be given at the next quarterly earnings briefing in early May.

ENDS

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Mark Flesher
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027 221 6526