Acquisition

Carphone Warehouse Group PLC
31 July 2000


              THE CARPHONE WAREHOUSE GROUP PLC
                MAKES ACQUISITION IN PORTUGAL


The Carphone Warehouse Group PLC, today announces the
purchase of PVP a Portuguese mobile telecoms retailer for a
total of £3.1m in cash.   PVP currently has eight stores
taking the Group's Portuguese portfolio to 30.

Currently the Group has a strong presence in Portugal's
shopping centres.  The new stores are complementary to the
existing portfolio as they are predominantly in high street
locations in Lisbon and surrounding suburbs.  The stores
will be re-branded The Phone House within three months.

David Ross, Chief Operating Officer said: 'Our European
expansion strategy is very much on track.   The acquisition
will enable the Group to increase its market share in
Portugal as well as to further strengthen its relationships
with networks and suppliers.'

Along with our recent purchase of 27 stores in France, the
PVP acquisition is another important development.  The
coming months will see the Group continue to build European
presence through store expansion, broadening our offer of
mobile telecoms products and services as well as continuing
our emphasis on outstanding customer service.'


Enquiries

The Carphone Warehouse Group Plc        0208 896 5000
Roger Taylor
Hugh Roberts

Credit Suisse First Boston              0207 888 8888
George Maddison
James Leigh Pemberton

Citigate Dewe Rogerson                  0207 638 9571
Chris Barrie

NOTES TO EDITORS

1.   The Carphone Warehouse Group PLC recently (14 July)
     floated on the London Stock Exchange.  Close to 102.6
     million new shares and over 61 million existing
     ordinary shares were offered, representing
     approximately 20% of the total enlarged share capital.
     Based on the issue price of 200p per share, the Group
     is valued at approximately £1.7billion.

2.   The Carphone Warehouse Group PLC (CPW) was founded in
     1989 and has experienced rapid growth in the 1990s
     under the leadership of Charles Dunstone and David
     Ross.  The company has three business segments.

-    Distribution - principally comprising retail, on-line
     and insurance.
-    Telecoms - comprising on-going revenues and Value
     Telecom
-    Wireless Internet Services - comprising Mviva and
     certain strategic investments.

3.   Distribution

     CPW is the only pan-European retailer of mobile
     telephony products and services.  It is the leading
     independent mobile phone retailer in the UK, France,
     Spain, Sweden and Ireland and is one of the leading
     such retailers in Belgium and the Netherlands, in each
     case in terms of market share.  The Group expects to
     develop a strong presence in the German market
     following its recent agreement to a further 97 retail
     locations.

     The Group provides a growing distribution platform in
     Europe for the mobile network operators and equipment
     manufacturers.  CPW is developing its Telecoms division
     including its own mobile virtual network operator
     (MVNO), branded Value Telecom, and further through its
     recent acquisition of the UK business of Cellcom
     Limited, a cellular services provider, which will
     enable it to increase the Group's involvement in after
     sales services offered to customers.


     CPW connected approximately 2.3 million customers to
     mobile phone networks in the year to 25 March 2000,
     compared to approximately 1.1 million connections in
     the previous financial year.  Subscription packages
     represented approximately 48% of connection sales.  Pre-
     pay packages represented approximately 52% of
     connection sales.

     As well as its network of shops, CPW sells directly to
     customers via its UK based telephone call centre, a pan-
     European website and its site on Open interactive TV.
     Approximately 35% of CPW's customers in the UK take out
     insurance policies with CPW Insurance.  As at 25 March
     2000, CPW Insurance had a customer base of
     approximately 511,000 and generated £27.4 million
     revenues.
     
4.   Telecoms
     Ongoing revenue: CPW has agreements with an increasing
     number of European mobile network operators from which
     the Group receives a share of air-time revenue derived
     from subscribers introduced by the Group to those
     operators.  The share of these revenues generates
     significant recurring cash flows with no direct cost to
     the Group.

     Value Telecom: Launched in December 1999, Value Telecom
     is a mobile virtual network operator.  It offers a
     tariff structure combining the advantages associated
     with the traditional subscription and pre-pay services.
     Value Telecom's offering has been designed not to
     replicate tariff packages offered by existing mobile
     network operators

5.   Wireless Internet Services
     This division comprises Mviva, the Group's multi-access
     internet portal and strategic investments in wireless
     technology and internet-related businesses.  Launched
     in the UK in July 2000 Mviva is accessible via mobile
     and fixed line communications devices such as mobile
     phones, PDAs, personal computers, laptop computers and
     interactive television.  Mviva is available to
     customers regardless of device for mobile network
     operator.  It will be launched initially in four
     European markets, (France, Spain, Sweden and the
     Netherlands) in September and in selected countries
     across the rest of Europe over the next 12 to 18
     months.  Mviva has arrangements with over 50 third
     party content and service providers, offering a wide
     range of information, e-commerce and other services to
     the user.
     
     On 12 June 2000, CPW and AOL Europe entered into a
     strategic alliance under which AOL Europe acquired a
     15% interest in Mviva and was issued warrants to
     acquire a further 4.9% interest in Mviva within the
     next 12 months.  In return AOL Europe paid US$25million
     in cash and agreed to provide functionality, content
     and services to Mviva.
     
     The Group makes strategic investments in new mobile
     internet technology in order to strengthen CPW's
     ability to capture, influence and take advantage of the
     raid advance of the relevant technology within the
     emerging wireless market by leveraging the Group's
     brand and distribution network.  These investments are
     primarily aimed at providing the Group and Mviva with
     richer content and thus delivering enhanced services to
     CPW's customers.
     
     The Pan-European coverage of the Group's distribution
     activities, its significant customer base and well
     established relationships with European mobile network
     operators attract the interest of wireless technology
     and internet entrepreneurs, providing CPW with access
     to a large number of strategic investment
     opportunities.