883,000 new mobile phone customers – 128,000 new DSL customers – Vodafone and Arcor are on their way to becoming the best integrated communications provider

Düsseldorf, 22 July 2008. Vodafone Germany and its subsidiary, Arcor, have recorded further growth of mobile and fixed network customers in the spring quarter. There were 883,000 new mobile phone customers in the second quarter of 2008, plus 128,000 new DSL customers. 35.295 million customers now use mobile services and 2.774 million customers use DSL from Vodafone and Arcor. Arcor's fixed network revenues increased by 3.0 percent to EUR 571 million and Vodafone's service revenues declined only slightly by 1.9 percent to EUR 1.790 million, an indication that the negative trend in recent quarters is flattening out.

The slight downturn in revenues has continued as a result of regulatory measures, but the trend is definitely reversing thanks to the positive revenues from 3G data services and fixed network products. We're making excellent progress in achieving our objective to become the best full service provider in Germany. On 1 August, when we introduce integrated management structures, we will begin operating as an integrated telecommunications company. With Arcor's help, we want to turn our customers into fans," commented Friedrich Joussen, CEO of Vodafone Germany.

Vodafone's key growth drivers are still 3G data services and fixed mobile substitution products. 6.383 million customers already use a 3G phone model or mobile internet services on their notebooks. Non-messaging data revenues increased by 24.8% to EUR 222 million in the last quarter, and they now account for 12.4% of service revenues. Vodafone and Arcor are both very successful players in the fast-growing DSL market. 2.774 million customers now have access to high-speed internet with Vodafone and Arcor's DSL service. That's a 128,000 increase in the last quarter and 570,000 year on year. The additional marketing of DSL via the Vodafone distribution channels has resulted in 112,000 customers signing up for Vodafone DSL in the last quarter.

Another positive trend in the mobile communications market is that voice usage is increasing . Every customer makes an average of 113 minutes of calls on their mobile phone every month. Last year, total monthly calls only amounted to 109 minutes.

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Jens Kürten, External Communications, T. +49 211 533-6650
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Vodafone Germany is one of the largest and most modern telecommunications providers in Europe. It realises turnover of more than EUR 10 billion (Vodafone including Arcor) and has 15,000 employees. In conjunction with its full subsidiary Arcor AG & Co KG, Vodafone Germany is an integrated technology and service provider with a portfolio including mobile communications, fixed network telephony, internet and broadband data services for business and private customers. Continuous development, numerous patents and investments in new products, services and the modern network have made Vodafone an innovation leader in the German telecommunications market. Vodafone Deutschland is headquartered in Düsseldorf and Arcor in Eschborn near Frankfurt. Vodafone and Arcor are committed to CSR and they also support numerous projects through the German Vodafone Foundation.

The companies are part of the Vodafone Group. Visit the websites at www.vodafone.de and www.arcor.de for further information.