Vodafone Group Plc announces today that following completion of the sale of Orange plc by its subsidiary Mannesmann AG to France Telecom earlier this week, it has today received notice from the UK Radiocommunications Agency of the intention, pursuant to the 3G mobile spectrum auction held earlier in the year, to grant Licence B to Vodafone Limited on 1 September 2000. Accordingly, the Company will be making payments approaching £6bn and EUR 8.5bn in the first few day of September on behalf of its subsidiaries Vodafone Limited and Mannesmann Mobilfunk GmbH for UMTS licences awarded in the UK and Germany respectively. Cash proceeds from the sale of Orange will in part be used to fund both licence payments, with the balance reducing the Group's debt.

The Group's debt will fall further when proceeds are received from the purchasers of Mannesmann AG's automotive and industrial business and its watches business, which is likely before the end of September. As a result, Vodafone Group expects its debts to amount to between £13bn and £14.5bn by its half yr end, 30 September 2000. The Group also owns 113.8 France Telecom shares (approximate market value of EUR 14.9bn) and EUR 2.1bn France Telecom loan note which will be redeemed for cash over the short to medium term.

Vodafone Group's current long and short term credit ratings are A2/P1 from Moody's and A/F1 from Fitch. In addition it has an outstanding positive credit watch A-/A2 rating from Standard & Poor's which is expected to be resolved shortly.

For further information contact:

Vodafone Group Plc
Terry Barwick, Director of Corporate Affairs
Tim Brown, Investor Relations Director
Melissa Stimpson, Senior Investor Relations Manager
Telephone: +44 (0) 1635 33251

Tavistock Communications
Lulu Bridges
Telephone: + 44 (0) 20 7600 2288

press.office@vodafone.com