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O2 Unveils i-mode Wireless in Ireland

6th October , 2005

Europe : O2 Ireland announced a major innovation in mobile technology with the commercial launch of i-mode, the world's most widely used mobile internet service, developed by NTT DoCoMo (Japan's largest mobile communications provider). i-mode will be available exclusively from O2 in Ireland and offered to pre-pay and post-pay customers.

i-mode already has in excess of 50 million subscribers world-wide, five million of which are outside of Japan, and is a proven service that builds on the collective experience of 12 operators over six years. Two European operators which launched the service in 2002\2003, gained 1 million i-mode customers within two years.

Commenting on the launch of i-mode in Ireland, Danuta Gray, Chief Executive Officer of O2 Ireland said: "i-mode is the world's most widely used mobile internet service. Following its introduction in Japan in 1999, it drove internet penetration levels up from 18% to 78% in the space of 5 years and its success in Europe to date has seen two operators gain 1 million i-mode subscribers each within two years of launch.

Currently Ireland's low levels of internet penetration means that 63% of homes have no form of internet access and of these households, 60% state that the reason why they won't get internet access is because they don't have a PC and they perceive it to be too expensive. (Amarach Consulting, commissioned by ComReg June 2005).

In addition, a recent ComReg survey revealed that 24% of homes are now 'mobile only', with no fixed line subscription (April 2005). I believe this backdrop highlights the extent of the opportunity for i-mode to have a dramatic impact in the rise of internet access penetration in Ireland. Our customers have told us that they want, a fast internet service which is 'always on' and 'always available', at the touch of a button. This is i-mode.

O2 has consistently led the market in Ireland by bringing dynamic, innovative technologies to Irish consumers based on their current needs, whether those needs be lifestyle or business orientated. With 22% of our revenue coming from mobile data services, i-mode greatly enhances our position in an increasingly competitive Irish mobile landscape and is a very strong differentiator", Gray added.

Speaking at the launch, President of DoCoMo i-mode Europe, Isao Ohashi said, "As NTT DoCoMo, we are very pleased and excited to announce the launch of O2 Ireland's i-mode service - the 14th i-mode service world wide today. We see the same potential in the Irish market to that which we saw in Japan when NTT DoCoMo first launched i-mode ourselves. We are confident that the same success story and growth will be seen in Ireland in the coming months. With the addition of such a strong partner, we are certain that the i-mode family will be even more successful."

i-mode is available on O2's 2.5G and 3G network and is based on secure and proven internet standards. It is a fast and easy-to-use service that offers a broad range of content specifically designed for mobile phones. Using i-mode, customers will be able to send and receive email and video messages, browse the internet, book reservations abroad, download video clips, find a job, find a flat to rent and buy hundreds of items. Coming shortly will be access to additional transactional type services such as online banking and airline ticket reservations.

To date, O2 Ireland has formed 80 partnerships with well known brands who have developed official i-mode sites including AIB, paddypower.com, worldres.com, daft.ie and many media outlets (see list attached). This figure will increase to over 160 over the next 12 months. Currently there are over 95,000 i-mode sites worldwide. O2 Ireland has employed a dedicated team to help companies alter their existing website to become i-mode compatible. This process is quick and easy and, depending on the website, can be completed in a few hours or days.

i-mode will cost 1c per kb of data traffic. To put this into context, a customer can book three nights in Paris for 50 c, search and view five apartments in Dublin on a property site for 82c and search and buy a laptop for €1.13. As an introductory offer there will be no subscriptions until January 2006, thereafter content providers, who have a monthly subscription, will charge up to a maximum of €3.00 per month. i-mail will be free for the first six months.

i-mode is available from O2 Stores from Friday 7th October and customers will be able to choose between three handsets from NEC and Samsung at various price points. O2 will continue to add additional i-mode handsets to the existing range over the coming months.

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