TOKYO -- Vodafone and Softbank today announce an agreement to form a partnership to conduct joint development and procurement of mobile technology and content.

The proposed partnership intends to harness the mobile and Internet expertise and assets of Vodafone and Softbank in Japan to develop hardware and software for the mobile Internet. The partnership will initially focus on three key development areas:

1. Handset Development and Procurement
The partnership will work with manufacturers to develop and procure technically advanced handsets which can be manufactured at low cost.

2. Service Platforms and Mobile Portals
The partnership will develop software that will enhance the customer experience by providing a much richer user interface through mobile portals.

3. Content
Vodafone and Softbank will work together sourcing content which will be developed and aggregated to take advantage of the partnership's proposed advanced handset technology.

Based on successful development in the above areas, the partnership will also potentially consider expansion into other areas.

Under the agreement, Japan will be the centre of development activity between the joint venture partners. Both companies will have equal ownership of the partnership.

It is envisaged that technology developed under the partnership will be centrally sourced and made available to Vodafone and Softbank group companies as well as other companies under licence.

The formation of the partnership is conditional upon regulatory approvals and agreement by the parties of definitive documentation.

Arun Sarin, Chief Executive, Vodafone, commented:

"I'm pleased to be able to announce our agreement with Softbank today. As we stated at the time of our sale of Vodafone KK to Softbank in March, we intend to continue our relationship with Softbank, one of the leading telecommunications and media companies in Japan, to benefit from insights into the Japanese market. By working together, we will be able to develop new mobile technologies and content for the benefit of our customers, as well as offering our developments under licence."

Masayoshi Son, CEO and President of the Softbank Corp., commented:

"For Softbank, working with Vodafone is a great opportunity to accelerate innovation both in terms of new technologies and customer-centric services. Vodafone's size and experience in mobile together with Softbank?s converged media and Internet know-how will certainly be a strong combination for driving industry-wide change in the fundamental structure of how mobile services are delivered worldwide."

"Following on from the Vodafone KK transaction, Vodafone and Softbank continue to work together in the true spirit of partnership. Together, we see this effort as a means of significantly driving down the cost of supplying best-in-class services to a very broad base of customers, not only in terms of initial costs, but as we plan to develop more flexible service platforms, this will allow for a richer customer experience at a lower ongoing cost."

Vodafone Group plc (NYSE: VOD)

SoftBank Corp.