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27th July,2004

Europe : Vodafone Group Plc (“Vodafone”) announces today key performance indicators for the quarter ended 30 June 2004.

Inset is Arun Sarin, Chief Executive of Vodafone quoted below.

The main highlights are:

•3.1 million organic net additions, and 2.7 million additions from stake changes, increasing the proportionate customer base to 139.2 million;

•Blended annual ARPU up €1 to €362 in Italy, down €1 at €309 in Germany and ¥2,330 to ¥78,365 in Japan, compared to March 2004. ARPU in the UK was up £5 to £314, including a further £4 uplift from the acquisition of Singlepoint;

•Total data revenues increased to 16.3% of controlled service revenues for the year to June
2004 from 15.0% for the year to June 2003; controlled data revenues for the quarter up 13% on
an organic basis on the same quarter last year;

•9 million controlled Vodafone live!™ customers at the end of June 2004, with a further 1.3
million customers in non-controlled operations;

•Mobile Connect Card sales in controlled operations increased to over 300,000, including over
50,000 with 3G capability.

Arun Sarin, Chief Executive of Vodafone, commented:
“Overall we feel we have made a very strong start to this year. We have recorded good performances in both customer and revenue growth. With over 139 million proportionate customers, our business is progressing well, despite a tougher competitive environment in some markets. Data revenues continue to increase helped by Vodafone live! where we now have over 9 million controlled customers. These KPI’s are in line with our expectations and we are therefore reiterating our guidance for the year to March 2005.”

United Kingdom
Vodafone UK added 132,000 net customers in the quarter, taking the total base to 14.2 million registered customers, an increase of almost 7% since last year. Churn has remained stable due to continued focus on customer retention and loyalty initiatives. Blended annual ARPU increased to £314 from £309 for the year to March 2004, including a £4 uplift from the Singlepoint acquisition.

The underlying increase in blended ARPU primarily reflects growth in data usage. The combined benefit of growth in both average customers and in blended ARPU has led to a 14% growth in service revenue for the quarter when compared to the same quarter last year. Data as a percentage of service revenue for the year to June 2004 was 16.6%, up from 14.7% for the year to June 2003, reflecting the benefit of the increasing penetration of Vodafone live!™ customers, who now total 2 million.

Net acquisition and retention costs as a percentage of service revenues in the quarter were slightly lower than in the quarter to March 2004 due to an increased focus on direct channels but significantly higher than the same quarter last year, reflecting the increased level of competition in the UK market.

Germany
Net customer additions of 462,000 demonstrate continued strong growth in Germany, resulting in a closing base of 25.5 million customers. Lower spending contract customers continue to represent the majority of net additions with an added benefit from a slightly improved churn rate.

Blended annual ARPU was €309 compared to €310 for the year to March 2004, reflecting the impact of lower spending new customers. Strong customer growth was the primary driver behind a 7% increase in service revenue for the quarter compared to the same quarter last year, when measured in local currency. Data as a percentage of service revenue for the year to June 2004 was 17.4%, up from 16.7% for the year to June 2003 due to the increased penetration of Vodafone live!™ customers to 3 million.

Net acquisition and retention costs as a percentage of service revenues in the quarter were broadly stable compared with the previous quarter to March 2004 and the same quarter last year.

Italy
Proportionate net customer additions were 205,000 in the quarter, leading to a total proportionate customer base of 16.4 million. Blended annual ARPU increased slightly to €362 from €361 for the year to March 2004, with increasing voice and data usage being offset by a 1% increase in inactivity levels due to the effect of increased competition. Churn remained broadly stable.

Service revenue for the quarter increased 10% on the same quarter last year, when measured in local currency. Data as a percentage of service revenue increased to 13.5% for the year to June 2004 from 11.8% for the year to June 2003, reflecting the benefit from a series of promotions and an increase in Vodafone live!™ customers to 1.3 million.

Net acquisition and retention costs as a percentage of service revenues in the quarter slightly increased on the same period last year, reflecting the increase in competitive activity in the Italian market. However, these costs remain at very low levels when compared to the rest of the Group.

Japan
The closing proportionate base in Japan was 13.2 million, including an additional 2.7 million customers from stake changes as a result of the tender offers for Vodafone Holdings KK and Vodafone KK announced in May. The Group had an effective ownership of 87.7% in Vodafone KK at the end of June. Churn levels remained stable, benefiting from the continued investment in customer retention activities.

Vodafone Japan continued to experience a downward trend in blended annual ARPU, falling to ¥78,365 from ¥80,695 for the year to March 2004. The fall in ARPU reflects the competitive environment, increasing market penetration and growth in prepaid customers.

Service revenue for the quarter decreased by 6% compared to the same quarter last year; however, it was only 1% lower than the quarter to March 2004. Data as a percentage of service revenue of 21.9% for the year to June 2004 was up slightly on the 20.9% recorded for the year to June 2003 and continues to represent the highest level of data revenue in the Group.

Net acquisition and retention costs as a percentage of service revenues in the period increased slightly on the same quarter last year reflecting the continued high level of competition in the Japanese market.

Products and services
Vodafone live!™ is now available in 20 countries, including 3 partner networks. Vodafone live!™ with 3G was originally launched in May and is now available in 7 countries, most recently in Sweden.

Vodafone has continued to extend the availability of its business offerings, with the GPRS version of the Mobile Connect Card available in 13 countries and the 3G version in 10. Significant progress has been made in product offerings to the corporate market with Wireless Office, now available in 10 markets, in conjunction with Blackberry from Vodafone, which is now available in 11 countries.

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