Receipt of correspondence relating to proposed merger

SKY and Vodafone have received letters from legal counsel representing Spark, Trustpower and InternetNZ (Parties) requesting assurances that SKY and Vodafone refrain from completing the Proposed Merger in the event that the New Zealand Commerce Commission (NZCC) gives its clearance, for a period of time that will enable the Parties to challenge the NZCC decision in court. SKY and Vodafone have declined to provide the requested assurances. Counsel for Spark indicated in their letter that if the assurances are not provided they anticipate being instructed to seek an interim stay. SKY does not consider that there is any proper basis for seeking an interim stay from the courts and, should any party seek an interim stay, SKY intends to oppose any such application and seek an undertaking as to damages. SKY has full confidence in the NZCC and its processes. In the event the NZCC provides clearance in respect of the Proposed Merger, SKY intends to proceed to completion in an orderly manner upon satisfaction or waiver of any outstanding conditions. For further information please contact: Jason Hollingworth Chief Financial Officer SKY Network Television (09) 579 9999 021 312 928 jhollingworth@skytv.co.nz Kirsty Way Director of Corporate Communication SKY Network Television 021422794 kway@skytv.co.nz End CA:00296848 For:SKT Type:MERGER Time:2017-02-16 08:53:58