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ASX Release 24 November 2008

Annual General Meeting Presentations of the Chairman and Managing Director

In accordance with Listing Rule 3.13, please find following the presentations to be delivered to the Annual General Meeting of Shareholders this morning by the Chairman and Managing Director of iiNet Limited.

Yours sincerely,

David Buckingham

Company Secretary

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Chairman’s speech for 2008 AGM Before commencing the formal business of the meeting I would like to reflect on the extraordinary environment witnessed in the 2008 year (the “Global Financial Crisis”) and what it means for iiNet. At the conclusion of the formal business our Managing Director, Michael Malone, will update shareholders on recent activities and some of the exciting things planned for 2009. The Current Environment History will probably record the recent financial turmoil as the Great Crash of 2008, and certainly to call the past 12 months challenging is an understatement. The collapse and extreme volatility of the world’s stock markets, including Australia, was initially due to the sub-prime crisis in the US. This crisis caused the start of a major snowball effect which we are still experiencing. Several banks around the world have failed, others faltered, the world’s largest insurance company has been effectively nationalised, and banking confidence and liquidity has dried up. iiNet’s Comparative Advantage Whilst share prices have fallen dramatically with the Australian market having lost more than half its value from its peak 12 months ago, there are a number of reasons why iiNet will be able to weather the storm of the wider market and maintain its comparative advantage including:

iiNet sends a small invoice to a lot of customers, providing a very limited and evenly weighted debt exposure across the market;

iiNet provides a relatively essential service in today’s social & business landscape;

in the current climate where high debt levels are synonymous with collapse, iiNet’s low gearing and strong cash generation are very attractive attributes;

iiNet has been able to attract and retain an excellent team of people with considerable knowledge in a ever-growing industry; and

iiNet’s excellent team has been able to produce consistent results, providing measurably high levels of standards.

iiNet’s business is well positioned to take advantage of the current financial conditions which should present more opportunities than challenges. We are, however, very mindful to maintain vigilance over our costs and to hold a nimble strategic position.

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Fair Access and the National Broadband Network (NBN) In terms of regulatory matters, iiNet has always been a vocal advocate for competition in the telecommunications sector. In particular, iiNet has taken an active and public role in lobbying for access to regulated telecommunications infrastructure at a reasonable cost. This was demonstrated by Michael Malone’s recent attendance at the NBN Senate hearings here in Perth a couple of weeks ago. iiNet has provided significant input to the Department of Broadband, Communications and the Digital Economy over many key aspects of the NBN process to date and continues to seek outcomes that will ultimately deliver greater choice, service and value for internet and telephone customers in Australia. iiNet is a key proponent of the TERRiA Consortium, working with its fellow consortium members in the ongoing process to bid for the NBN tender. For the NBN to be successful, iiNet believes that certain conditions must be in place including a succinct and usable regulatory regime, together with a strong commitment to prioritise those Australians most in need of adequate services. We are mindful that the net effect needs to be an increase in overall broadband speeds for Australia as a whole, and we are committed to this end. Australian Federation Against Copyright Theft (AFACT) Federal Court Action As you may be aware, iiNet was served last week with a lawsuit in the Federal Court by AFACT in relation to Australian copyright laws. iiNet has already made its views very clear last week in relation to the claim and these can be viewed by the public on iiNet’s company website. Key Achievements I am proud to summarise the following key achievements in the 2007/08 financial year:

Successful acquisitions of Westnet and Up N’ Away, delivering significant growth and network synergies. iiNet has returned to the acquisition trail and is now clearly the third largest ISP in Australia following the successful acquisitions of Westnet, Australia’s sixth largest ISP, on 19 May 2008 and Up N’ Away on 10 January 2008. iiNet now has the leading market share in WA with two leading brands and many new opportunities to grow shareholder value in 2009 and beyond.

Brand campaigns in Perth, Sydney and Brisbane strengthening awareness and driving sales. The popularity of iiNet’s advertising campaigns, with our much loved Finn character, has contributed significantly to the top-line growth. In particular, the Naked DSL “call to action” advertising campaign launched in

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Perth and Sydney from February 2008 has delivered significant increases in subscribers and improved brand awareness. The launch into Brisbane in June 2008 has also brought extremely positive results with a three-fold increase in sales (at end of financial year) since the campaign was launched. Melbourne is soon to follow suit and predicted to return similar results. Westnet is also set to launch its marketing campaign for its new ADSL2+ product.

“Follow the Sun” service strategy implemented with new service centre opened in Cape Town, South Africa. This has allowed iiNet’s support lines to cover all hours of the day across the globe, providing an enhanced 24 hour customer service.

Launch of free content library. iiNet is leading the charge in offering exciting new content to its customers completely quota-free. The current content library includes iTunes music and video downloads, ABC’s iView, the English Premier League, golf Majors highlights, NASA TV and more than 60 radio stations. Watch this space as there is more to follow soon.

Outstanding Financial Performance. In summary, the tremendous work of our team has delivered outstanding financial growth with:

Operating cashflow of $58.9 million, up 112% on FY07;

Total dividends of 7.0 cents per share (fully franked) declared out of 2008 profits, up 1.0 cent on FY07;

Underlying net profit from continuing operations of $17.8 million, up 50% on FY07;

Total revenue of $251.2 million, up 9% on FY07; and

Strong growth in Naked DSL with more than 40,000 subscribers. Conclusion The year to June 2008 was a challenging one and the Company’s strong results reflect the dedication of our management team and staff. I would like to thank our Managing Director, Michael Malone for his leadership over the year and the tireless efforts of his executive team. I would also like to publicly welcome the Westnet staff and management, and thank them for their continued support and vision. Finally, I wish to thank my fellow Directors for their contribution over the year and particularly, to recognise the efforts of Mr Andrew Milner, who retired in September after a nine year tenure with iiNet. Andrew will remain a long-term friend of the company as it drives towards becoming the leading challenger in the Australian telecommunications market.

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24th November 2008

Managing Director’s Presentation to Shareholders at the Annual General Meeting 

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22008 AGM

A recap of FY 08

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32008 AGM

FY08 highlights

• Exceeded guidance

• Increased Revenue and Earnings

• 7 cent dividend up on FY07

• Major lift in service levels and Net Promoter Score (NPS)

• +40,000 Naked subscriber (end of October)

• Successful acquisition of Westnet

• $25m free cash delivered

An outstanding year for iiNet

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42008 AGM

Fundamentals remain solid – no slowdown in growth

• All core products continuing to grow with dial shrinkage in decline

• Record sales of DSL in October 2008 for iiNet – 8,300

• Westnet launched DSL2+ on 21st October 2008

• Telephone “bundling” rate increasing to >60% at point of sale

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52008 AGM

Fundamentals remain solid – improving profitability

• Improvements on on‐net and off‐net ARPU’s and margin driven by increasing on‐net base and improving pack mixes

• Current economic conditions having no impact

• Margin increases flowing through to the bottom line

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62008 AGM

Westnet integration tracking ahead of expectation

Progress to Date

• Network migration of 40k Metro customers on‐going

• ADSL2+ launched to Westnet 21st October on the iiNetwork

• Westnet reseller channel now selling iiNet products

• Satellite mining of iiNet dial base

• Unified HR & IT system, alignment of best practice policies in place

• Integrated internal communications network

• Consolidation of suppliers underway

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72008 AGM

Confident of beating synergy target

$m

FY09 Target of $2.5m

Being delivered through combination of voluntary 

migrations to iiNetwork and new Telstra volume rebates

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82008 AGM

Looking forward…F

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92008 AGM

Our aspiration is to be the leading challenger in the Australian Telecommunications Market

Differentiating through:

1. Outstanding service2. Cool products and attractive content3. A loved brand4. Leading industry consolidation

Strategic focus for growthF

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102008 AGM

What does it mean?

• Leading challenger means growing Broadband market share to >15%

• Outstanding service – lifting Net Promoter Score to world class >50%

• Cool products – 1 new product per month released to customers

• A loved Brand – prompted awareness at >90% & unprompted at >70%

• Content ‐ launch of IPTV in 2009, expanded “Media Lounge” and new website

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112008 AGM

Finn heading to Melbourne in H2 ‘09

Our Finn campaign will head to Melbourne in H2 ‘09, following his successful launch into Brisbane

Naked Phase 3 to start soon!

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122008 AGM

iiTV’s coming … pilot testing underway!

Perfectly positioned to bring a new experience to your TV

Differentiating through:• Twin “free to air” tuners with EPG• PVR (record you favourite shows)• On Demand (TV Shows, Latest Movies – when you want)• More TV channels (sports, entertainment)• Interactive Features (instant news/weather, games, Voice)• Quota free

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132008 AGM

Launching enriched content environment on our website

• Different landing pages focussing on sales and content

• Same look, feel, language and branding as our marketing

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142008 AGM

Expanding our business segment

The start…• iiNet business set up in June 2007• Business team grown from 2 to 21 in 12 months

The progress…• Dedicated customer & PC support• Naked DSL Business• Virtual Private Networks• Annex M (self managed DSL speeds)• Multi‐line VoIP• Wireless Hotspots (via Tomizone)

What’s to come?• SIP Trunking, Web storage, calling packs• selling through expanded reseller agency with 

new commission plans in place

The last 12 months results…• Business Revenue growth of 23%• Business DSL growth of 17%• >100% growth in VoIP services

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152008 AGM

First national ADSL2+ launch …. by Westnet

• Soft launched on 21st October

• Provides access to more than 1,400 exchanges nationally, 998 of which are rural

• Already >850 customers with no active marketing

• Full campaign launch January ’09

• Speeds up to 20Mbs for the first time nationally via Telstra exchanges

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162008 AGM

Guidance – accelerating profit growth

Key metrics H1 FY09

Low High

Revenue $203m $206m

EBITDA $29m $31m

NPAT $10m $12m

Net Debt as Oct ‘08 $23m

Accelerating profit growth post the Westnet acquisition

Set to break $400m revenue in FY09

Note: H1 ‘09 EBITDA impacted by one‐off costs for set up of Cape Town

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172008 AGM

Keeping an eye on credit risk

Resilience Factors

• Internet no longer a discretionary consumable

• 70% of revenue derived from WA and QLD

• Billing typically 1 month in advance with 14 day standard credit terms

• 70% of customers use credit card to settle account, 20% Direct Debit and 5% BPay

• No increase in unrecoverable debt with DSO averaging 18 days – 90% typically pay within 14 days

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182008 AGM

2008 … a fantastic growth year for iiNet

• Launched Naked and grown it to +40,000

customers

• Opened our new call centre in Cape Town

• Acquired Westnet and commenced integration

• Actively addressed the NBN issue

• Built our business unit

• Launched into Brisbane

… and plenty more to come in 2009

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192008 AGM

Some of the information contained in this presentation contains “forward‐looking statements” which may not directly or exclusively relate to historical facts.  These forward‐looking statements reflect iiNet Limited’s current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside the control of iiNet Limited.

Important factors that could cause actual results to differ materially from the expectations expressed or implied in the forward‐looking statements include known and unknown risks.  Because actual results could differ materially from iiNet Limited’s current intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward‐looking statements contained herein with caution.

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