Q2 KPIs show sustained growth in service revenue, increased prepay and contract connections and double the number of 3G devices connected to the network in last 12 months

Key Highlights:

• Addition of more than 48,500 net customers for the quarter ended September 30, 2007(excluding MVNO customers). Vodafone Australia’s direct customer base now stands at more than 3,431,000.
• Service revenue growth of 5.4% for the first half (April – September, or H1) of 07/08 compared to the H1 result for 06/07.
• Overall revenue has been adversely impacted by reductions in ACCC pricing principles for termination rates, which have been reduced twice in the past 12 months. Excluding this reduction in incoming general revenues, Vodafone Australia’s underlying year-on-year service revenue growth was 12.4%.
• Total Average Revenue Per User (ARPU) fell marginally as a result of lower incoming revenues, with a reduction of 1.8% for H1 year-on-year
• Total network usage for H1 07/08 was 4,432 million minutes, and represents 6.9% growth year-on-year.
• Mobile Virtual Network Operator (MVNO) customers increased in H1 07/08 by more than 21,000, bringing the total number of MVNO customers to more than 329,000.
• Vodafone Australia closed H1 07/08 with more than 711,000 3G devices, which is more than double the total number of 3G devices registered at the close of H1 06/07.

Russell Hewitt, Chief Executive Officer at Vodafone Australia, comments:

“Vodafone Australia continues to perform strongly and deliver excellent service revenue growth.. This is fuelled by our acquisition of new customers and an increase in the range and usage of the services we offer.

“Vodafone Australia’s retail and wholesale agreement with Crazy John’s is a standout performer. John Ilhan built an extremely dynamic and robust company and his legacy lives on through the strong leadership team he put in place. The ongoing relationship between Vodafone and Crazy John’s will continue unabated and the business outlook for both companies is extremely promising.

“Vodafone Australia is maintaining a very well-balanced and geographically diverse retail and business sales footprint. The agreement to create Vodafone in Myer stores provides a significant increase in our controlled distribution, putting Vodafone in an enviable position as we build new momentum in the lead-up to Christmas.

About Vodafone
Vodafone is the world's leading international mobile communications group with equity interests in 25 countries and 39 partner networks across 5 continents. The group provides quality services to 3.76 million Australian customers and has more than 241 million proportionate customers worldwide.
© Vodafone Pty Limited 2007: VODAFONE and the Vodafone logos are trade marks of the Vodafone Group. Other product and company names mentioned herein may be the trade marks of their respective owners.

For more information please contact:

Dominic Hilton-Foster, Vodafone Australia on 0405 703 495
Greg Spears, Vodafone Australia on 0406 315 014