Sydney, June 22, 2006 (ABN Newswire) - Leading infrastructure and industrial services company United Group Limited has renewed its end-to-end property and facilities management contract with Telstra.

The contract, first awarded to United Group in 2001 for a five year period, has been signed for a further three years and will continue to be managed by United Group's business process outsourcing business United Group Services. The decision to renew ensures that Telstra can maintain focus on core activities whilst United Group Services continues to provide property and facility management services for Telstra's portfolio of commercial, industrial and residential properties and special purpose assets.

United Group Limited Managing Director and CEO Richard Leupen valued the renewal of such a high profile contract, saying it reflects United Group's increasing capabilities within the property management sector.

"United Group is delighted to have been able to extend our ongoing relationship with Telstra. Over the past five years we have been able to demonstrate and deliver highly innovative solutions for Telstra's property portfolio. The opportunity of a further three year partnership with them enables us to continue to meet and exceed the needs of such a dynamic and changing organisation.

"We are excited by the fact that Telstra's portfolio is Australia's largest. In renewing our contract with them, we have demonstrated our ability to adopt the right strategies when providing a range of management services to major blue-chip clients.

"We are looking forward to another successful three years with Telstra."

The three-year contract is effective from September 2006, with its implementation having no impact on Telstra's day-to-day activities.

Telstra's property and facility management portfolio boasts around 14,000 Australian sites incorporating 2.46 million square metres of space, consisting of offices, retail sites, exchanges, warehouses, call centres, residences. United Group Services will also continue to deliver property management services for Telstra's mobile and network sites. The contract is valued at approximately $90 million.

The service scope includes both strategic property portfolio services as well as day-to-day property management services including real estate transactions, facilities management, capital works, finance and administration, strategy and planning, mobile acquisitions, divestments and acquisitions.

>>> TELSTRA CORPORATION LIMITED.
>>> UNITED GROUP LIMITED.