> About O2

We are a leading provider of mobile communications services with 100% ownership of mobile network operators in three countries - the UK, Germany and Ireland - as well as a leading mobile internet portal. All our businesses are branded O2. Additionally, the company has operations on the Isle of Man - Manx Telecom and owns O2 Airwave - an advanced, digital emergency communications service.

Our mobile businesses cover some of the largest markets in Europe, with the UK and German markets giving us access to a total population of over 141 million people. We have well-established and profitable mobile businesses in the UK and Ireland, where O2 UK and O2 Ireland each have a track record of revenue and growth.

In these countries, we have developed a strong presence in high value markets and in the provision of mobile data and internet services.

Our businesses have all deployed commercial GPRS (General Packet Switched Radio System or 2.5G) networks and have secured third generation mobile telephony ("3G") licences. GPRS has enabled always-on connectivity for mobile office services, e-commerce, virtual banking, online billing, entertainment, mobile internet and other mobile data services.
Our mobile data business is designed to create value for our group by attracting high value customers, by increasing the voice and data usage of our networks and by reducing churn through high quality content, services and applications and closer relationships with customers.

Our markets have been highly receptive to the first wave of data products, seeing significant increases in the use of text messaging both within the person-to person, premium and wholesale markets. We have also made an encouraging start with our portfolio of interactive services having launched our Multimedia Messaging Services (MMS) and Java Games. Usage of these services is expected to increase further throughout 2003, with the introduction of full MMS interconnection between networks and a greater choice of multimedia, colour-screen handsets.

We have successfully launched a range of data products across O2 with sales of the xda device continuing to show steady growth. The device combines GPRS mobile data networks with conventional GSM, to offer full colour internet access, web-based email and extensive mobile phone capabilities.

In the business market, uptake of mmO2's corporate email on the move solution - BlackBerryTM - continues across our territories.

We believe in the significant benefits that a high-speed 3G network will bring to our customers. 3G will greatly enhance the delivery of a wide range of multimedia services, including new services such as video streaming. However, we do not see 3G becoming a significant commercial reality until mid/late 2005. In the meantime, GPRS will be the main bearer of multimedia services.