Change in US GAAP Accounting

Vodafone Group Plc
22 February 2005


22 February 2005

  CHANGE IN US GAAP ACCOUNTING FOR INTANGIBLE ASSETS - NO IMPACT ON VODAFONE'S
                         RESULTS UNDER UK GAAP OR IFRS

As previously announced, on 29 September 2004 the Staff of the United States
Securities and Exchange Commission ('SEC') announced new guidance on the
interpretation of accounting principles generally accepted in the United States
('US GAAP') in relation to accounting for intangible assets.

The new SEC guidance does not affect Vodafone Group Plc's ('Vodafone') results,
cash flows, or the carrying values of any of its assets under UK GAAP or, in the
future, under IFRS. Furthermore, the Group's dividend distribution policy and
share purchase programme are unaffected by the new SEC guidance.

Historically, under US GAAP, Vodafone has assigned to mobile licences the
residual purchase price in business combinations in excess of the fair values of
all assets and liabilities other than mobile licences and goodwill. This
approach has been on the basis that mobile licences were indistinguishable from
goodwill.

For US GAAP purposes only, the adoption of the new SEC guidance requires
Vodafone to distinguish between mobile licences and goodwill. However, the new
guidance does not permit the amount historically recorded as mobile licences to
be subsequently reallocated between mobile licences and goodwill. This has
resulted in a reduction of the carrying value of Vodafone's indirect interest in
the Verizon Wireless licences under US GAAP of £6.2 billion, net of £5.2 billion
related tax.

Consequently, the reduction in the carrying value of Vodafone's investment in
Verizon Wireless under US GAAP was not as a result of a change in Vodafone's
view of the financial prospects of Verizon Wireless.

                                    - ends -
For further information:

Vodafone Group
Simon Lewis, Group Corporate Affairs Director
Tel: [phone]

Investor Relations                     Media Relations
Charles Butterworth                    Bobby Leach
Darren Jones                           Ben Padovan
Sarah Moriarty
Tel: [phone]               Tel: [phone]

Tavistock Communications
Lulu Bridges
John West
Tel: [phone]

Notes to editors:
For US GAAP reporting, Vodafone and certain other telecom and media companies
have historically used the residual method to assign values to licences in
business combinations and, since the adoption of FASB Statement No. 142 Goodwill
and Other Intangibles Assets (Statement 142), in impairment testing of
indefinite lived intangible assets. Under the residual method, Vodafone has
assigned to mobile licences the residual purchase price in business combinations
in excess of the fair values of all assets and liabilities other than mobile
licences and goodwill.

In their announcement, the SEC Staff stated that the residual method of
accounting for intangible assets should no longer be used. The new guidance
requires a direct method of valuation where assets are valued separately and
without reference to other assets or liabilities. On transition to the new
rules, the guidance requires Vodafone to carry its indirect interest in the
Verizon Wireless licences at the lower of the current carrying value and the
fair value of the licences determined using a direct valuation method.

Vodafone performed its transitional impairment test as of 1 January 2005 and
recorded a transitional reduction of its indirect interest in the Verizon
Wireless licences of £6.2 billion, net of £5.2 billion tax, which will be shown
as a cumulative effect of change in accounting principle in its Annual Report on
Form 20-F for the year ending 31 March 2005.




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