Interim Results

Carphone Warehouse Group PLC
6 November 2000


                    Half Year Results to 23 September 2000

                             Accelerating Growth

Highlights


  * Turnover up 62% to £447.9m

  * EBITDA up 62% to £17.1m (pre-MViva)

  * Over 1.48 million connections - up 74%

  * Over 1000 stores

  * Growth across 14 European markets - leading independent positions in 8
    markets

  * Telecoms Services growth to 75,000 customers

  * Successful launch of MViva: 30,000 customers and over 100 content
    providers

  * Earnings per share up 50% to 1.1p (before amortisation of goodwill and
    exceptional items and pre MViva)

Charles Dunstone, Chief Executive Officer said:

'I am delighted to announce another set of record results in our first
financial report since flotation. The Carphone Warehouse is delivering both
accelerating growth and a significant increase in profitability.

The Carphone Warehouse is now clearly the largest independent distributor of
mobile phones and related services in Europe. We have 1009 stores, including
77 Tandy stores, in 14 countries and are the leading independent in eight of
these markets.

Underlying margins are improving as we progressively secure scale economies
and these trends will continue as our store portfolio matures.

Looking further ahead, the increased penetration rates, the future technology
changes and the forecast growth of the replacement handset market all play to
The Carphone Warehouse's positioning of simple, impartial advice.

In addition to the continuing revenue streams we receive from our share of
subscription customer airtime usage and from Insurance, we are successfully
leveraging our distribution strength to build our Telecoms Services Division.
This brings additional continuing revenues both from our own mobile virtual
network operation and from facilities management services.

The rate of growth of our store portfolio leaves The Carphone Warehouse well
placed for the second half of the year which includes the usual peak Christmas
sales quarter and the receipt of volume rebates.'

SUMMARY OF RESULTS
               26 Weeks ended 23 September 2000    26 Weeks ended Year ended 25

                                              m 24 September 1999    March 2000

                                                                m             m
Connections                                1.48              0.85          2.34

Turnover                                  447.9             277.3         697.7

EBITDA                                     15.6              10.6          41.4

Distribution and telecoms                  17.1              10.6          41.8

MViva                                     (1.5)                 -         (0.4)

Exceptional items                          13.0                           (5.1)

PBT*                                       21.0               6.7          25.4

Earnings per share before                  0.9p            **0.7p        **3.0p
exceptionals*

Cash and short term investments           113.4              34.1          36.5

Net assets                                412.2              32.0          43.4

Capital expenditure (including             68.8              10.5          61.9
acquisitions)

* before amortisation of goodwill

** adjusted for share capital restructuring

The Carphone Warehouse Group PLC ('The Carphone Warehouse') today announces
its first half-year results since its flotation on 21 July 2000, for the 26
weeks ending 23 September 2000. Total sales for the period increased by 62% to
£447.9 million and EBITDA increased 62% to £17.1 million (pre-MViva). Earnings
per share before amortisation of goodwill for the period increased from 0.7p
to 2.3p following exceptionals of £13m. Earnings per share (pre-exceptionals
and amortisation of goodwill and pre MViva) grew from 0.7p to 1.1p.
Exceptionals include a £16.5 million profit from the investment by AOL Europe
for 15% of MViva. The group invested over £68m in new stores, Telecoms
Services and further enhancements in operating systems during the period.

 The period showed significant organic and acquisitive store growth. As at 23
September 2000 the group operated 1009 stores across 14 markets, compared to
608 stores across nine markets at the same time last year.

The store growth was achieved organically in all markets and also through
acquisitions in Belgium, France, Germany, Holland, Poland and Portugal, giving
it leading positions in eight markets. In addition, The Carphone Warehouse has
developed its online activities with call centres and new transactional
websites across five European countries.

The Telecoms Services division also saw strong growth in its management of
customers, now over 75,000. MViva, the group's European Wireless Internet
Portal had over 30,000 subscribers at the end of September 2000 and has 50,000
to date, over 100 content providers and availability in five European markets.

Distribution

The revenue streams for Distribution are divided into Retail, Online,
Insurance and Wholesale.

The Distribution business generated total revenues of £436.0 million against £
264.1 million last year and contribution of £32.1 million (1999 £20.2
million). Gross margin improved in each area of the group's Distribution
business - Insurance, Wholesale Distribution and in particular Retail
Distribution. Overall gross margin was 24.7%, compared to 25.5%, reflecting
the growth of the lower margin wholesale business compared to the first half
of 1999.

The Retail business connected over 1.4 million customers, an increase of 74%
against the comparative period last year, and achieved sales of £275.5m (1999,
£190.8m). This growth came from both subscription, where handsets are sold to
customers who enter into airtime contracts and pre-pay sales, where users pay
for airtime in advance. The average connections per store across the group
increased when compared to the maturity profile of the store portfolio.

Online sales were strong, increasing from £9.3m to £13.0m. Derived through
European call-centres, transactional websites and our presence on Open, the
interactive TV channel. The business continues to be a good source of
connections for the group.

The Insurance business continues to perform well with growth in the number of
policy-holders to over 650,000 and turnover of £20.5m (£10.4m last year).

Other distribution activities including the Wholesale and Dealer divisions
continued to reflect the level of handset demand globally, with sales of £
126.9m against £53.6m last year. This activity was enhanced by the acquisition
of the Cellcom business and its voucher distribution operations.

Telecom Services

The Telecom Services division generated revenue of £11.5 million (1999 £4.0
million) and contribution of £7.0 million (1999 £4.0 million) representing
growth of 163%. The division's business is based on continued growth in the
on-going customer base and in the group's own customer and facilities
management base. The group currently manages more than 75,000 customers,
compared to 9,000 in March 2000 and derives on-going revenue from more than 1
million customers.

Wireless Internet Services

In June 2000, the Wireless Internet Services division launched MViva, the
group's wireless Internet portal. MViva is now available in the UK, France,
Spain, Sweden and Holland. The portal had 30,000 customers by the end of
September and has 100 content partners across Europe.

In June 2000, the group also entered into a strategic alliance under with AOL
Europe, which acquired a 15% stake in MViva for $25m and was issued warrants
to acquire a further 4.9% interest at a total valuation for MViva of $700m.
This investment has given rise to an exceptional profit of £16.5m in the
period.

In addition to MViva, the group's Wireless Internet Services fund has invested
$50 million to date in 18 companies including wireless application, technology
and service providers. Plans are underway to continue to generate value in
other wireless technology businesses in the future.

Capital Expenditure

During the period the group invested £68.8m in new stores, acquisitions and
further enhancements to its operating systems. The group made six significant
acquisitions in the period and converted almost 100 Tandy stores into The
Carphone Warehouse format. The remaining Tandy stores will either be converted
or vacated during the next 12 months.

Earnings per share

Clean EPS (before exceptional items and amortisation of goodwill and pre
MViva) grew by over 50% to 1.1p for the period ending 23 September 2000. No
interim dividend is proposed.


For further information please contact:

The Carphone Warehouse Group PLC                 0208 896 5000

Charles Dunstone

David Ross

Roger Taylor

Credit Suisse First Boston                       0207 888 8888

George Maddison

Citigate Dewe Rogerson                           0207 638 9571

Anthony Carlisle (0973 611 888)

Chris Barrie

To obtain a copy of our Interim report please logon to:

www.carphonewarehouse.com or email: [e-mail]



                               FINANCIAL REVIEW

Consolidated profit and loss account as at 23 September 2000
                                   26 Weeks ended 23  26 Weeks ended 24    Year
                                      September 2000     September 1999   ended
                                                                             25
                                                £000              *£000
                                                                          March
                                                                           2000

                                                                          *£000
Turnover                                     447,910            277,291 697,720
Cost of sales                             (332,630)          (203,868)(505,738)

Gross profit                                 115,280             73,423 191,982

Operating expenses (excluding               (99,656)          (62,842)(150,593)
depreciation and amortisation)

EBITDA                                        15,624             10,581  41,389

Distribution and telecoms                     17,133             10,581  41,842

MViva                                        (1,509)                  -   (453)

Depreciation                                 (8,808)           (4,332)(10,617)

Operating profit before                        6,816              6,249  30,772
amortisation of goodwill

Amortisation of goodwill                     (3,597)               (75)   (340)

Operating profit                               3,219              6,174  30,432

Exceptional items                             13,014                  - (5,132)

Net interest receivable (payable)              1,191                453   (196)

Profit on ordinary activities                 17,424              6,627  25,104
before taxation

Tax on profit on ordinary                    (1,190)            (2,320) (8,831)
activities

Profit on ordinary activities                 16,234              4,307  16,273
after taxation

Minority interests                           (1,130)                393      54

Retained profit for the period                15,104              4,700  16,327

Earnings per share                              1.8p             **0.7p  **2.3p

Earnings per share before                       2.3p             **0.7p  **2.3p
amortisation of goodwill

*turnover and operating profit comprise continuing and discontinued operations

** share capital has been adjusted to reflect restructuring of minority
interests

Consolidated balance sheet as at 23 September 2000

                                        26 Weeks     26 Weeks ended 24     Year
                                           ended        September 1999 ended 25

                                              23                  £000    March
                                       September                           2000
                                            2000
                                                                           £000
                                            £000
Fixed assets

Intangible assets - goodwill             233,309                 3,013   26,933

Tangible assets                           90,383                37,715   63,190

Other investments                         39,671                     -   11,584

Total                                    363,363                40,728  101,707

Current assets

Stock                                     59,371                55,421   51,842

Debtors                                  110,695                46,355   82,826

Investments                               35,240                23,716   11,144

Cash at bank and in hand                  78,203                10,411   25,348

Total                                    283,509               135,903  171,160

Creditors: amounts falling due         (184,734)            (112,343) (173,820)
within one year

Net current assets (liabilities)          98,775                23,560  (2,660)

Total assets less current                462,138                64,288   99,047
liabilities

Creditors: amounts falling due after    (14,890)              (13,585) (21,033)
more than one year

Provisions for liabilities and          (35,081)              (18,723) (34,594)
charges

Net assets                               412,167                31,980   43,420

Capital and reserves

Called-up share capital                      819                   570      600

Share premium                            353,070                     -        -

Capital redemption reserve                    30                    30       30

Profit and loss account                   55,993                32,439   43,560

Equity shareholders' funds               409,912                33,039   44,190

Minority interests                         2,255               (1,059)    (770)

Total capital employed                   412,167                31,980   43,420

Consolidated cash flow statement
                                                26 weeks   26 weeks  Year ended
                                                   ended      ended
                                                                       25 March
                                                      23         24        2000
                                               September  September
                                                    2000       1999       £'000

                                                   £'000      £'000
Net cash inflow from operating activities          1,380      4,412      44,475

Returns on investments and servicing of            1,191        453       (196)
finance

Taxation                                         (1,777)      (298)     (7,412)

Capital expenditure and financial investment

Payments to acquire fixed asset investments     (28,087)          -    (11,584)

Payments to acquire tangible fixed assets      (35, 501)    (7,794)    (36,662)

Net (outflows) receipts from (acquisition)      (24,096)   (11,639)         864
disposal of current asset investments

Receipts from sale of tangible fixed assets            -          -         392

Net cash outflow from capital expenditure and   (87,684)   (19,433)    (46,990)
financial investment

Acquisitions and disposals

Purchase of subsidiary undertakings             (33,274)    (2,700)    (25,206)

Sale of subsidiary undertakings                        -          -       3,680

Part disposal of subsidiary undertakings           9,699          -           -

Exceptional sale of assets                             -          -       4,419

Net cash outflow from acquisitions and          (23,575)    (2,700)    (17,107)
disposals

Net cash outflow before management of liquid   (110,465)   (17,566)    (27,230)
resources and financing

Management of liquid resources

Transfers from short- term deposits                  196          -       7,296
Financing

Issue of share capital                           186,213          -           -

Loans                                           (15,292)      (832)      11,425

Capital element of hire purchase and finance        (77)       (25)       (224)
lease payments

Net cash inflow (outflow) from financing         170,844      (857)      11,201

Increase (decrease) in cash in the period         60,575   (18,423)     (8,733)

NOTES TO FOLLOW:

Segmental analysis

Divisional results are analysed as follows:
                  26 weeks         23  26 weeks         24     Year   25 March
                     ended  September     ended  September    ended       2000
                                 2000                 1999
                  Turnover             Turnover            Turnover  Operating
                            Operating            Operating              profit
                               profit               profit
Distribution         436.0       32.1     264.1       20.2    667.3       65.6

Telecoms             
Services              11.5        7.0       4.0        4.0     10.5        9.7
Wireless               0.4      (1.7)         _          _      1.4        1.0
Internet
Services
Divisional           447.9       37.4     268.1       24.2    679.2       76.3
contribution
Common costs                   (21.8)               (13.0)              (32.5)
Depreciation                    (8.8)                (4.3)              (10.4)
Amortisation                    (3.6)                (0.1)               (0.3)
Continuing           447.9        3.2     268.1        6.8    679.2       33.1
operations
Discontinued             -          -       9.2      (0.6)     18.5      (2.7)
operations                
Operating profit     447.9        3.2     277.3        6.2    697.7       30.4

Discontinued operations relate to Tecno, a camera retail business.

Acquisitions included within continuing operations generated turnover of £
28.8m and an operating profit of £0.6 m for the period ended 23 September
2000.

Exceptional Items
                                           26 weeks     26 weeks   Year ended
                                              ended        ended
                                                                 23 September
                                       23 September 24 September         2000
                                               2000         1999
                                                                        £'000
                                              £'000        £'000
Provision for fundamental                   (3,500)            _      (5,500)
reorganisation
Profit (loss) on disposal of                 16,514            _      (1,613)
subsidiary undertakings
Profit on disposal of tangible fixed              _            _        1,981
assets
Net income (expense)                         13,014            _      (5,132)



Tax on profit on ordinary activities

Taxation has been provided using the estimated effective rate of taxation for
the year ended 31 March 2001 of 27% (2000 - 35%), amounting to a charge of £
1.2m.

Earning per share

Earnings per share is analysed as follows:
                                    26 weeks ended  26 weeks ended   Year ended

                                      23 September    24 September     25 March
                                              2000            1999         2000
Share capital ('000)                       819,340        713,195*     713,195*
Basic earnings per share                      1.8p            0.7p         2.3p

Earnings per share before                     2.3p            0.7p         2.3p
amortisation
of goodwill

Earnings per share before
amortisation
of goodwill and exceptional items
-Pre Mviva                                    1.1p            0.7p         3.0p
-Post Mviva                                   0.9p            0.7p         3.0p

*Share capital has been adjusted for 113 million shares issued in exchange for
certain minority interests pre flotation and bonus share issues



Net cash inflow from operating activities

Reconciliation to operating profit:
                                       23 September    24 September    25 March
                                               2000            1999        2000

                                              £'000           £'000       £'000
Operating profit                              3,219           6,174      30,432
Depreciation of tangible assets               8,808           4,332      10,617
Amortisation of goodwill                      3,597              75         340
Profit on disposal of tangible                    -               -       (254)
assets
(Decrease) increase in provisions           (4,521)         (2,506)       7,233
Increase in stock                           (2,578)        (19,400)    (14,446)
(Increase) decrease in debtors             (10,648)           1,625    (36,661)
Increase in creditors                         3,503          14,112      47,214
Net cash inflow from operating                1,380           4,412      44,475
activities

Capital and reserves
                    Called up share    Share    Capital  Profit and loss Total
                            capital  premium  Redemption        account
                                                 Reserve
                              £,000    £,000      £'000         £'000    £'000
                                                                       
                                                   
At 25 March 2000               600        -           30          43,560 44,190
Profit for period                 -        -            -         15,104 15,104
Foreign exchange                  -        -            -           (769) (769)
movement
Employee Share                    -        -            -        (1,902)(1,902)
Ownership Trust
Issues of new                   219  353,070            -            - 353,289
shares
At 23 September                 819  353,070           30       55,993 409,912
2000