NEWBURY, U.K. -- Against a backdrop of intensifying competition and pricing pressures in several of its key markets,Vodafone Group Plc (“Vodafone”) is currently completing its detailed budget for the year ending 31March 2007 and its annual long term planning process. This incorporates an annual review of thecarrying value of its assets in accordance with International Financial Reporting Standards(“IFRS”). Under IFRS, which was first adopted with effect from 1 April 2004, goodwill is no longersubject to annual amortisation. Previously, under UK GAAP, goodwill was amortised with a chargeto the income statement of approximately £13 billion per annum.Vodafone now expects the outcome of this review of the carrying value of its assets (“impairmentreview”) will be a material impairment in the carrying value of goodwill in the range of £23 billion to£28 billion, reflecting a lower view of growth prospects, particularly in the medium to long term,than those it had used previously. Final details of the review of carrying values will be announcedupon completion of the process.

Vodafone is also providing an update to its revenue and EBITDA margin expectations for the yearending 31 March 2007. Vodafone’s expectations for adjusted earnings per share for the yearending 31 March 2007 are in line with current market expectations.Vodafone’s outlook for the current financial year remains unchanged.Impairment reviewUnder IFRS, goodwill and indefinite lived intangible assets in respect of subsidiary undertakingsand joint ventures are not subject to amortisation but are tested at least annually for impairment orwhen indicators are identified that an asset may be impaired. Investments in associatedundertakings are also tested for impairment. Finite lived assets, such as 3G licences, are carriedat historic cost and subject to annual depreciation or amortisation and are reviewed for indicatorsof impairment.

As detailed below, Vodafone carries a significant amount of goodwill on its balance sheet,principally resulting from the Mannesmann acquisition in 2000, which occurred at a time whenshare prices in the telecommunications sector were significantly higher than today.The Group prepares ten year plans for its businesses annually, which it also uses for the purposesof conducting the carrying value review. Reflecting the increasingly competitive environment in theindustry, Vodafone has incorporated into its latest ten year plan a lower view of growth prospectsfor a number of key operating companies, particularly in the medium to long term, than those it hasused previously.

The result of these factors is that Vodafone expects to report: