Attention ASX Company Announcements Platform …

              Attention ASX Company Announcements Platform
                        Lodgement of Open Briefing®




iiNet Limited
Level 6
263 Adelaide Terrace
Perth, WA 6000




Date of lodgement: 19-Nov-2007

             Title: Open Briefing®. iiNet Limited. MD on Outlook for FY08

             Record of interview:

             corporatefile.com.au
             iiNet Limited reported normalised FY07 EBITDA of $39.1 million, excluding
             individual significant items, which represented an increase of 115 percent.
             Underlying this result was a 6 percent increase in revenue to $227.0 million.
             What were the primary factors behind your operating profit growth and how
             did you achieve the improvement in EBITDA margin to 17.2 percent from 8.5
             percent in FY06?

             MD Michael Malone
             Over the last 12 months iiNet achieved a significant regulatory milestone with
             the ACCC issuing its final determination on Line Sharing Services (LSS)
             pricing which reduced the cost of this service from $9.00 per month per service
             to $2.50. With over 150,000 subscribers currently on our network this provides
             us with an annualised saving of $11.7 million.

             In addition to the regulatory win, we successfully executed our "Protect the
             Core" strategy which is focussed on ensuring the core of the business is
             protected from future supplier price shocks similar to that which we
             experienced in FY06. The key actions here included:
                 · repricing unprofitable plans;
                 · increasing the number of customers on our network;
                 · investing in customer service technology;
                 · improving our collection process; and
                 · reducing overheads.




1
    The benefits of this strategy have continued to flow into FY08. When you
    compare the two halves of our FY07 performance, EBITDA for the first half
    normalised for LSS at $2.50 per month was $18.5 million and the second half
    EBITDA was $20.6 million. Based on the unaudited performance in the 4
    months of FY08 we expect to exceed our FY07 second half EBITDA of $20.6
    million in the first half of FY08 by approximately 9 percent.

    corporatefile.com.au
    What are your priorities for FY08? Where will future growth come from?

    MD Michael Malone
    We'll continue to focus upon finalising the "Protect the Core" strategy which
    we commenced in FY07. Over the last year we have dramatically reduced the
    risk of supplier price shocks by initiatives, such as investing in broadband
    infrastructure, pursuing a favourable LSS decision and investing in dark fibre
    to connect to our exchanges.

    The last substantial piece of the strategy to be put in place is structuring an
    international bandwidth agreement which protects our long term future. The
    media have reported that international bandwidth capacity is set to increase
    with operators, such as Pipe Networks, Southern Cross, Optus and Telstra
    indicating that they are planning to increase their existing international
    bandwidth capacity. We expect that as a result the price for international
    bandwidth will reduce over the short to medium term.

    We invested about $50 million in rolling out our ADSL2+ broadband network
    to 286 exchanges to deliver speeds to customers of up to 24,000kbps. The
    focus of our marketing campaign now is to maximise the return on this
    investment by targeting potential customers connected to exchanges on which
    we have spare ADSL2+ capacity.

    We have begun moving into content with offerings such as Video on Demand,
    music downloads and online gaming. While we believe content will be a break
    even proposition for us, we expect that it will enhance the customers'
    experience of the internet which will increase our already high customer
    retention rates. This has been the experience of the challenger telco's in
    Europe.

    We are also rolling out new products to protect and potentially build out
    subscriber base. Although we may not generate significant new revenues, by
    providing clients with the latest technological we'll maintain our competitive
    edge.

    corporatefile.com.au
    What are the new products that you will be rolling out over the next 12
    months?

    MD Michael Malone
    On the 15th November we released the first full scale Naked DSL product to
    the Australian market. This product is aimed at people who primarily use their
    mobile phone to make telephone calls and only have a fixed line service to
    connect to broadband. This product removes the need to pay line rental to
    receive a high speed broadband service.


2
    Whilst this product has been released for only 4 days, we have made over 650
    sales which is well ahead of what we expected.

    We have commenced rolling out wireless hot spots in the Perth CBD. Over the
    next 9 months we are planning to cover the Perth CBD and the Sydney CBD.
    This will mean that iiNet customers will be able to access broadband at their
    favourite coffee shop, bar or restaurant under their existing subscription.

    Our latest business product is multi-line VoIP (Voice over Internet) which
    allows small businesses to substantially reduce their telephony charges using
    our network.

    corporatefile.com.au
    What are the market segments that you are targeting?

    MD Michael Malone
    We have commenced our move into the small corporate and home office sector
    led by our broadband products which coupled with multi-line VoIP provide a
    compelling offer. We believe this segment of the market is currently not being
    fully serviced and with our national ADSL2+ network we are well positioned
    to offer innovative products in attractive packages.

    From providing internet access to the early internet adopters 10 years ago, we
    have grown our revenue to $227 million in FY07 by offering innovative
    products, such as the first fixed price broadband product in Australia. We will
    continue to focus on these loyal broadband and dial up retail customers.

    Additionally, we are also expanding our focus to target a demographic of some
    4 million people whom we refer to as New Economic Orders or NEOs. This
    term describes Generation X inner city dwellers who dominate broadband and
    internet usage who believe that computers and technology give them control
    over their lives. These people also look at the internet as being a central part of
    their life and they are selective about the brand they will select.

    corporatefile.com.au
    Your balance sheet is now debt free. How will you use this balance sheet
    strength?

    MD Michael Malone
    Over the ten years to 2006 we acquired and integrated 31 ISP's across
    Australia and New Zealand. We believe the industry will resume consolidation
    and with net cash of $6.4 million we are competitively placed to be a driver of
    this process.

    Our acquisition strategy is to leverage our network investment by acquiring
    metropolitan broadband, dial-up and voice customers.

    corporatefile.com.au
    How would you summarise the outlook for the rest of FY08?




3
    MD Michael Malone
    The outlook is for earnings growth on a comparable basis driven by growth in
    our on-net subscriber base, growth in our fixed line voice business,
    stabilisation of our dial-up subscriber base and tight cost management. We
    will comfortably exceed our FY07 NPAT normalised for one-off items of
    $11.9 million.

    In summary, the business is in great shape and has an exciting pipeline of
    initiatives underway.

    corporatefile.com.au
    Thank you Michael.

    For more information about iiNet Limited visit www.iinet.net.au or contact
    Michael Malone on 08 9214 2207.

    For previous Open Briefings with iiNet Limited or to receive future Open Briefings
    by e-mail, visit www.corporatefile.com.au
    DISCLAIMER: Corporate File Pty Ltd has taken reasonable care in publishing the information contained in this Open
    Briefing®. It is information given in a summary form and does not purport to be complete. The information contained is not
    intended to be used as the basis for making any investment decision and you are solely responsible for any use you
    choose to make of the information. We strongly advise that you seek independent professional advice before making any
    investment decisions. Corporate File Pty Ltd is not responsible for any consequences of the use you make of the
    information, including any loss or damage you or a third party might suffer as a result of that use.




4