NEWBURY, U.K. -- Vodafone today announces that it has agreed to sell its 25% interest inSwisscom Mobile to Swisscom for a cash consideration of CHF4.25 billion(£1.8 billion). Swisscom already owns 75% of Swisscom Mobile, which is theleading mobile operator in Switzerland.

The consideration implies an Enterprise Value to EBITDA(1) multiple of 9.1xfor the financial year ending 31 March 2007.

Vodafone and Swisscom Mobile have signed a revised long-term Partner NetworkAgreement in Switzerland with an initial five year term. This will enableSwisscom Mobile and Vodafone customers to continue to benefit fromVodafone's global products and services such as Vodafone live!, Blackberryfrom Vodafone and international roaming services, including preferredroaming arrangements. In addition, Vodafone and Swisscom will continue toco-operate in serving international corporate customers.

Commenting on the transaction, Arun Sarin, Chief Executive of Vodafone,said:

"Vodafone and Swisscom have enjoyed an excellent relationship since weacquired our 25% stake in Swisscom Mobile in January 2001. We do not,however, see ourselves as the most appropriate holder of this minority stakein the longer-term and Swisscom is keen to increase its holding in SwisscomMobile to drive through synergies in its fixed and mobile businesses. Ittherefore makes sense to sell our stake now for an attractive price."

Vodafone Group plc (NYSE: VOD)