News release

London - 18 October 2005

3 today set out its strategy to build on its lead in the convergence of communications, entertainment and information.

The company outlined the three areas which form its business:

• Communications - including all forms of personal communications, voice and video calling, text and picture messaging and, now, customer blogging

• Entertainment - including television and video clips, music audio and video, computer games services and media publishing

• Information services - including access to the internet, My 3, which allows customers to top-up through their handset and, shortly, a range of products such as Magic Eye which enables users to dial-in to a remote camera using their phone

  Bob Fuller, Chief Executive of 3 UK, commented:

  "We are at a significant moment in the history of communications and media - a point of inflection. The previous distinctions between the media, technology and communications industries have all but disappeared. An entirely new type of company is emerging that blurs the boundaries between all three."

  "3 is the first truly mobile media company. Our business is radically different because we bring together information, communications, entertainment and in a single, mobile device. No one has done this before."

  "We are learning all the time about customer behaviour and have structured our business to deliver what people really want. Our announcement today demonstrates 3's continued leadership in the take up of 3G and its commitment to delivering innovative services to its growing customer base."

  New Services

  3 unveiled a number of groundbreaking new initiatives, including the launch of a customer-created content channel and a new approach to delivering music tracks. The company also announced a series of music exclusives on the network starting with Madonna's new single and video.

  3 is set to unlock single-source advertising as a revenue stream and is looking for a partner to sell advertising space on its network. This follows successful advertising trials with brands such as Redbus, the distributor of Brit-film 'It's All Gone Pete Tong'.

  The 3G Future

  3, with over 3.2million 3G customers after 32 months of operations - more than the other UK mobile operators combined - said that its target is to be number one or two in each of the 3G music, TV and internet markets.

  In addition, the company reiterated that it was on track to meet the key financial target of EBITDA breakeven, including acquisition costs, by the end of the year.

  Bob Fuller concluded the presentation by outlining his vision for the future of 3G and how customers will determine how the market develops:

  "We are seeing the beginning of a revolution where people are using their 3G handsets not just to communicate but to receive and transmit all kinds of information and content. We recognise that customers are driving the evolution of our product. They are demanding more content and interactivity and 3 is totally focussed on delivering what they want."

  - Ends -

  Notes to Editors

  High resolution photography available on request or from www.newscast.co.uk, Tel: 0208 886 5895.

  About 3

  3 is a mobile media company delivering a convergence of communications, entertainment and information to customers on the move.

  The three areas which form the core of its business are:

• Communications - including all forms of personal communications, voice and video calling; text, picture and video messaging; and mobile blogging

• Entertainment - including television, music audio and video, computer games, and media publishing

• Information services - including wireless web, access to the best of the internet and a range of news and other information services

  3 services are available from sister companies in Australia, Austria, Denmark, Hong Kong, Ireland, Israel, Italy and Sweden. 3 also holds UMTS licences in Indonesia and Norway.

  For further information, please visit: www.three.co.uk or call the 3 Media Office on +44 (0)20 7350 5696.

  Three facts about 3:

• 3, a mobile media company, launched the UK's first 3G network

• 3 currently has over 3.2million customers in the UK and over 10million worldwide

• The 3 network offers national coverage for calls and texts, and over 86% population coverage for 3G services