Q3 Interim Management Statement shows significant growth as expanded retail footprint gains traction, generating strong prepaid and contract customer connections

Key Highlights:

• Addition of more than 141,000 net customers for the quarter ended December 31, 2007 (excluding MVNO customers). Vodafone Australia’s direct customer base now stands at more than 3,572,000.
• Service revenue growth of 6.4% for Q3 07/08 compared to Q3 06/07.
• Total Average Revenue Per User (ARPU) fell by 1.5% for Q3 07/08 compared to Q3 06/07 as a result of two successive reductions in mobile termination rates during the last 12 months, which has lowered incoming revenues.
• Contract customer base grown by 17.6% for Q3 07/08 compared to Q3 06/07
• Total network usage for Q3 07/08 was 2,422 million minutes, representing 8.2% growth year-on-year.
• Vodafone Australia closed Q3 07/08 with more than 780,000 3G devices, which represents a 71.9% increase for Q3 07/08 compared to Q3 06/07.

Russell Hewitt, Chief Executive Officer at Vodafone Australia, comments: “Vodafone Australia had an exceptional Christmas quarter. We retailed our best ever range of 3G mobile phones and mobile broadband devices and customers responded well to all Vodafone prepaid and contract plans.

“In a heavily saturated and highly competitive market, 141,000 net connections is a fantastic result that eclipses the record performance that Vodafone Australia posted for Christmas 2006. Service revenue growth remains strong at 6.4%, despite two successive reductions in termination rates.

“In the mobile broadband arena, Vodafone was first again to challenge the market by offering Australians the best value for money with our $39 for 5GB per month mobile broadband data plan. We’ve had a phenomenal response from personal and business customers alike, with a four-fold increase in weekly connections.

“Crazy John’s exceeded forecast performance, contributing significantly to our retail customer acquisition figures and building strong growth into our customer base.

“During Q3, Vodafone signed a three-year extension to our MVNO agreement with Macquarie Telecom, which is a fantastic result that speaks volumes for the relationship we’ve established over many years. The MVNO agreement with AAPT is also performing very well and both Macquarie Telecom and AAPT continue to deliver a good proportion of high-ARPU customers in the business market.

“Vodafone achieved a major milestone in Q3, completing a three-year project to upgrade our customer management, billing and provisioning systems. The new systems enable Vodafone to bring new products and services to market faster and enhance our ability to customise the features and benefits of products to meet individual customer preferences. With these systems in place, our attention now turns to rolling out a national mobile broadband network that will provide high-speed coverage to 95% of the Australian population before Christmas 2008.”

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 3.57 million Australian customers (excluding MVNO customers) and has more than 252 million proportionate customers worldwide.

© Vodafone Pty Limited 2008: 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:

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