Acquisitions, etc

VODAPHONE AIRTOUCH PLC 7 October 1999 VODAFONE AIRTOUCH INCREASES OWNERSHIP IN JAPAN Vodafone AirTouch Plc (Vodafone AirTouch) today announces a series of transactions that will give it an equity interest of more than 20 percent in each of Japan's nine regional mobile telecommunications companies. By increasing its existing stake in those companies, Vodafone AirTouch will become a major national participant in Japan's rapidly expanding wireless market. On 22 September 1999, Vodafone AirTouch acquired the entire equity stake owned by Cable and Wireless Plc (Cable and Wireless) in Tokyo Digital Phone Co., Ltd., Kansai Digital Phone Co., Ltd. and Tokai Digital Phone Co., Ltd. On 30 September 1999, Vodafone AirTouch acquired from Japan Telecom additional shares in the six Digital Tu- Ka Group companies, which cover the regions of Kyushu, Chugoku, Tohoku, Hokkaido, Hokuriku and Shikoku. Effective 1 October 1999, the Digital Phone and Digital Tu-Ka companies began operating under the 'J-Phone' name. Vodafone AirTouch has also completed a definitive agreement with Cable and Wireless to acquire its entire equity stake in each of the former Digital Tu-Ka Group companies. The transaction is subject to board approvals from each of the six operating companies. Further building its stake in Japan, Vodafone AirTouch's wholly owned subsidiary, AirTouch International, on 16 July 1999 completed its acquisition of Metrophone Service Co., Ltd. from Distacom Communications Ltd. of Hong Kong and Tiger Spirit Developments Limited. Metrophone, a Japanese company, owns 12% of the issued share capital of J-Phone Tokyo Co., Ltd. The total consideration relating to the increase of ownership in Japan is approximately $550m. With the completion of these transactions, Vodafone AirTouch will become the second largest shareholder behind Japan Telecom in the carriers that serve each of Japan's nine mobile telecommunications regions. Working closely as partners, Japan Telecom and Vodafone AirTouch are now introducing the Digital Phone Group's J-Phone brand in each of the six former Digital Tu-Ka Group companies, rolling out the well recognised and respected brand on a nationwide basis. By combining the operating experience and market knowledge of two of the world's leading telecommunications companies - Vodafone AirTouch and Japan Telecom - together with a prominent national brand, the J-Phone companies will significantly increase their ability to compete successfully in the fast-growing Japanese mobile telecommunications market. Total wireless penetration in Japan grew from 32.3% in June 1998 to 39.4% in June 1999. The total number of customers in these nine regional companies rose in the same period from 4.6 million to 6.8 million, a 47.8% increase. In addition to the acquisitions announced today, Vodafone AirTouch is pursuing new opportunities for delivering next-generation ('3G') wireless services in Japan. On 30 August 1999, Vodafone AirTouch entered into a Shareholders Agreement with Japan Telecom and British Telecommunications Plc in connection with the recent establishment of the IMT-2000 Planning Co., Ltd. The IMT-2000 Planning Company was founded on 30 November 1998 by Japan Telecom, Nissan Motor Co., Ltd. and AirTouch International to pursue 3G business opportunities in Japan. Vodafone AirTouch, through its subsidiary, AirTouch International, has an equity interest of 26% in the new company, and will be the second largest shareholder behind Japan Telecom, which currently has an equity interest of 45.5%. Upon completion of the announced acquisitions, Vodafone AirTouch will have the following ownership interests in the Japanese mobile telecommunications companies: Vodafone Ownership at Pro Forma Japanese Mobile AirTouch Completion Proportional Telecommunications Ownership at of Announced Subscribers at Operating Company (a) 30 June 1999 Transactions 30 June 1999 (b) % % ('000) J-Phone Tokyo Co., Ltd. (c) 15.0 28.8 555 J-Phone Kansai Co., Ltd. 13.0 20.2 223 J-Phone Tokai Co., Ltd. 13.0 20.2 284 J-Phone Kyushu Co., Ltd. 4.5 22.2 161 J-Phone Chugoku Co., Ltd. 4.5 21.7 105 J-Phone Tohoku Co., Ltd. 4.5 23.5 136 J-Phone Hokkaido Co., Ltd. 4.5 23.3 52 J-Phone Hokuriku Co., Ltd. 4.5 23.9 49 J-Phone Shikoku Co., Ltd. 4.5 21.4 36 Total 1,601 ====== Notes: (a) Effective 1 October 1999, the Digital Phone Group and Digital Tu-Ka Group companies have been consolidated under the J-Phone brand name. (b) Adjusted on a pro forma basis giving effect to the completion of all transactions. (c) Includes 12.0% of J-Phone Tokyo Co., Ltd. owned by Metrophone Service Co., Ltd., a wholly owned subsidiary of Vodafone AirTouch Plc. For further information contact: Tim Brown, Investor Relations Director, or Melissa Stimpson, Senior Investor Relations Manager, or at Vodafone AirTouch Plc Telephone 01635 33251 or Lulu Bridges Tavistock Communications Ltd Telephone 0171 600 2288
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