Acquisitions

Carphone Warehouse Group PLC
17 August 2000

THE CARPHONE WAREHOUSE GROUP PLC MAKES EUROPEAN ACQUISITIONS


The Carphone Warehouse Group PLC today announces acquisitions
in the Netherlands and Poland.  Both purchases are being made
through The Phone House, the Group's wholly owned European
subsidiary.

In the Netherlands the Group is acquiring the largest
independent business to business mobile telecoms distributor
through the purchase of the entire issued share capital of
Road Phone Telecom NV, for a total of £6.4 million in cash.

The Group currently has 88 stores in the Netherlands (55 Phone
House, 33 Phone House Express), this combined with Road
Phone's 18 business centres takes the whole portfolio to 106.
Road Phone's turnover last year was approximately £10m and it
made over 20,000 connections, all of which were subscription-
based business contracts.  Each outlet will be branded as a
Phone House business centre within the next six months.

In Poland the Group is acquiring 57 dealerships through the
purchase of the entire issued share capital of CellStar SP
Zo.o from US wireless logistics company, CellStar Corporation,
for a total of £498,405 in cash.

The Group currently has four stores in Poland and this
purchase will take its portfolio to a total of 61.  The
dealerships will be refurbished to include the Phone House
branding and all are located in prominent locations in Warsaw
and other large cities.

David Ross, Chief Operating Officer, The Carphone Warehouse
Group PLC said:

'The Road Phone business fits well with the Phone House due to
its unique position in the business to business market.  The
acquisition is important as it establishes us as the most
significant distributor in the Netherlands giving us leading
positions in both consumer and corporate markets.

'The acquisition in Poland is an important step in developing
our portfolio in Central Europe. The region offers us huge
opportunities due to the scarcity of landline networks and the
increasingly heavy reliance on the mobile phone. Coupled with
our local knowledge and understanding, these prominent
locations will give us a real competitive edge in Poland.

'The last month has clearly demonstrated our European
expansion plans are right on track.   These acquisitions
complement our recent purchase of stores in France and
Portugal and together represent a significant development in
our European growth strategy, adding a total of 110 retail
outlets.'


Enquiries

The Carphone Warehouse Group Plc        0208 896 5000
David Ross
Hugh Roberts

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

Citigate Dewe Rogerson                  0207 638 9571
Anthony Carlisle


NOTES TO EDITORS

1.    The Carphone Warehouse Group PLC recently (28 July and
     31 August respectively) announced the purchase of 27
     stores from French clothing retailer Multiples SA for a
     total of £8.7m in cash and 8 stores from Portuguese
     mobile telecoms retailer PVP for a total of £3.1m in
     cash.

2.   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.

3.   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.

4.   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.

5.    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

6.    Wireless Internet Services

     This division comprises Mviva powered by AOL, 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.