Chairmans letter re the DRP

Letter from M2 Chairman - Craig Farrow

Dear Shareholder,

I am pleased to present to you M2's Dividend Reinvestment Plan ('DRP'), as announced on Wednesday 3rd February 2010.

The DRP is being introduced after a significant period of company growth and consolidation of M2's place in the Australasian telecommunications industry. Through implementing the DRP, the M2 board of directors intends to provide you, our valued shareholder, with an opportunity to increase your holding conveniently and at a discounted cost.

The DRP is effective for the interim dividend for the half-year ended 31 December 2009. Those shareholders with a registered address in Australia or New Zealand are eligible to participate. Your participation in the DRP is entirely optional and if you choose to participate, you may elect to reinvest part or all of your dividend payment.

Shares are offered at a 5% discount to the adjusted market price(1). The discount and the terms of the DRP may be changed by the directors in the future at their discretion.

Further to the above, as the shares are being issued by M2, there is no brokerage or any other transactional costs.

I would like to take this opportunity to thank you for your continued support of M2. The business has been in a steep growth phase for some time and in order to maximise shareholder value, we are now focusing on improving processes, systems and operational efficiency, together with continuing to expand our sales and marketing channels to ensure we continue to grow profitably and at a rate that can be sustained.

We hope that you will continue to be a shareholder M2, and enjoy the benefits.

Yours sincerely,

Craig Farrow

Chairman

^{(1) the average of the daily volume weighted average market price per share sold on the ASX during the five consecutive trading days commencing on the next trading day after the dividend record date.}