Agreement with Sainsbury's

Carphone Warehouse Group PLC
01 April 2003

1st April, 2003


Sainsbury's links with The Carphone Warehouse

The Carphone Warehouse Group PLC has signed an exclusive agreement with
Sainsbury's, the supermarket group, to provide mobile and fixed line telecoms
services.

Under the agreement, The Carphone Warehouse Group will be responsible for all
aspects of customer management, including credit checking, network connection,
logistics, billing, collection and customer care.  The service will launch later
this year.

The agreement represents a logical further development of The Carphone Warehouse
Group's strategy of managing mobile customers on behalf of third parties, and
rapidly penetrating the residential fixed line market with greater utilisation
of its own network.

This venture builds on Sainsbury's current mobile phone offering and will enable
its 11 million customers to benefit from simply structured, value telephone
services, from a market leading telecoms company.

Sara Weller, Sainsbury's Deputy Managing Director, said: 'We have chosen to do
this deal with The Carphone Warehouse because they are a leading provider of
telecoms services and have an excellent reputation for customer support.  Our
customers tell us that they are looking for simplicity and value for money.
Together we will offer those qualities and increased competition in the fixed
line market.'

Charles Dunstone, Chief Executive of The Carphone Warehouse, said: 'We are
delighted to be teaming up with one of the UK's biggest retailers to offer
telecoms services.  We have proven expertise in managing mobile customers, and
our recent entry into the fixed line market provides exciting growth
opportunities both for us and Sainsbury's.'


                                    - ends -


For further information:

The Carphone Warehouse

Press enquiries, Vanessa Tipple                                07947 00 00 21
Investor enquiries, Peregrine Riviere                          07909 907193

Sainsbury's

Press enquiries, Nikki Martin                                  020 7695 0136
Investor enquiries, Lynda Ashton                               020 7695 7162



                      This information is provided by RNS
            The company news service from the London Stock Exchange              SIILIIV