26 August 2008
Market Information Services Section
New Zealand Exchange
Wellington
Share Buyback Programme
Telecom Corporation of New Zealand Limited ("Telecom") announces that it will
undertake an on-market buyback of its ordinary shares. The purpose of the
share buyback is to acquire an equivalent number of ordinary shares as will
be issued pursuant to Telecom''s dividend reinvestment plan ("Plan") for the
dividend of 8.0 cents per ordinary share payable on Friday, 12 September
2008. The share buyback is intended to eliminate an increase in capital
arising under the Plan and any consequential dilutionary effect for existing
shareholders.
Share purchases may occur from Monday, 1 September 2008 and may continue for
a period not exceeding 6 weeks.
Ordinary shares will be acquired on the New Zealand Stock Market ("NZSX").
Telecom may acquire up to 20 million of its ordinary shares in this buyback,
although it anticipates that the number of shares it will actually acquire,
based on current market prices and historic participation rates in the plan,
to be closer to 7 million shares.
Yours faithfully
Craig Mulholland
Group Company Secretary
End CA:00169159 For:TEL Type:BUYBACK Time:2008-08-26:16:49:49