Re Agreement

Carphone Warehouse Group PLC
26 September 2006





27 September 2006



For immediate release



The Carphone Warehouse Group PLC ('Carphone Warehouse')



Commercial agreements with Best Buy Co., Inc. ('Best Buy')



Carphone Warehouse and Best Buy (together the 'Companies') have reached
agreement on the terms of two new commercial initiatives to be introduced over
the coming months: a stand alone mobile retail business in the US market
operating under the Best Buy Mobile brand, and a home computing customer service
business in the UK under the Geek Squad brand.



Best Buy Mobile

The Companies have signed an agreement to introduce Best Buy Mobile, a stand
alone, multi-network mobile retail format for the US market.  A trial period,
during which stores will be opened in New York City, is about to commence.  The
combination of Best Buy's unrivalled expertise in the US consumer electronics
market with Carphone Warehouse's excellent track record in independent mobile
phone retailing across ten European markets creates a strong skill base from
which to make Best Buy Mobile a success.



The Geek Squad UK

In a separate arrangement, the Companies have signed an agreement to launch the
Geek Squad in the UK, providing a range of enhanced customer support services to
home computer users.



Best Buy's Geek Squad business in the US is well-established and growing
rapidly.  Carphone Warehouse's position both as a mass-market provider of
broadband and a service-orientated retailer creates a ready-made customer base
for Geek Squad services.  The service will commence in 2007.



Financial impact

Carphone Warehouse's capital commitments during the trial periods for both Best
Buy Mobile and The Geek Squad UK are low, and neither project is expected to
have a material financial impact in the current financial year.



Bob Willett, CEO of Best Buy International, said:



'Best Buy and Carphone Warehouse share the goal of creating superior customer
experiences.  Carphone Warehouse has an excellent track record in independent
mobile phone retailing across Europe.  Our strengths in consumer electronics
retailing and computer support services in North America are unrivalled.  This
relationship will allow both of us to learn how to improve the customer
experience by applying each other's respective strengths.'



Charles Dunstone, CEO of Carphone Warehouse, said:



'The US market is very large but has little retail distribution on the Carphone
Warehouse model.  In addition, when we look at the explosion of broadband
penetration and home computing, we can easily see why the Geek Squad has been so
successful in the States.  For either of us to take our expertise into the
other's market on our own would be a step into the unknown.  Together, the
complementary skills of Carphone Warehouse and Best Buy mean we can jointly test
out both of these exciting opportunities at low cost, with low risk and little
diversion of management time.'



For Further Information


The Carphone Warehouse Group PLC


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