TEXT-Telecom NZ prices 200 mln Swiss franc bonds

(The following statement was released by the company)

WELLINGTON, July 8 - Telecom New Zealand today announced it had priced a CHF 200 million (NZ$258 million) Swiss bond issue.

The bonds will be issued under a 'wrap' of Telecom's Euro Medium Term Note Programme on 6 August 2008.

"Telecom will use the proceeds from the bond issue to refinance existing debt and for general corporate purposes," said Telecom CFO Russ Houlden.

Mr Houlden said a road show was conducted during the week beginning 23 June 2008. Following a positive response from investors it was decided to proceed with the issue, which closed fully subscribed.

"This is the second time Telecom has issued into the Swiss market.

"The Swiss bond market provided competitive pricing, while offering diversification from the other markets that Telecom has drawn on over the last five years.

"Telecom is particularly pleased with the execution of this deal given the tight global credit markets. This deal is a testament to Telecom's conservative capital management policies and the strength of its balance sheet," said Mr Houlden. ABN Amro Bank was lead manager of the bond issue.