Disposal

Vodafone Group PLC 25 January 2002 25 January 2002 VODAFONE AGREES TERMS FOR THE SALE OF ARCOR'S RAILWAY SPECIFIC FIXED-LINE TELECOMMUNICATIONS ACTIVITIES TO DEUTSCHE BAHN Vodafone Group Plc ('Vodafone') announces that Arcor AG & Co. ('Arcor'), a 73.6% subsidiary of Vodafone AG has agreed terms for the sale of its railway specific fixed-line telecommunications business, Arcor DB Telematik GmbH ('Telematik'), to the Deutsche Bahn AG group ('Deutsche Bahn'), the German state owned railway operator, for a total consideration of €1.15 billion (£713.23 million) in cash. This transaction will allow Arcor to focus on its core fixed-line telecommunications business. The transaction is structured to result in Arcor selling Telematik's physical infrastructure to Deutsche Bahn. Arcor will also sell 49.9% of Telematik's equity to Deutsche Bahn and enter into a put/call arrangement governing the remaining 50.1%, which will be exercisable at the earliest from 1 July 2002. Deutsche Bahn remains an 18.2% shareholder in Arcor, but will lose its special rights, including its veto rights on key decisions. The sale is expected to complete by April 2002. The transaction has been approved by the Arcor Supervisory Board and is subject to approval by Arcor's shareholders and regulatory approvals. Arcor and Vodafone were advised by UBS Warburg. -ends- For further information contact: Vodafone Group Plc Tim Brown, Group Corporate Affairs Director Melissa Stimpson, Head of Group Investor Relations Bobby Leach, Head of Group Financial Media Relations Darren Jones, Senior Investor Relations Manager Jon Earl, Senior Investor Relations Manager Tel: +44 (0) 1635 673310 Tavistock Communications Lulu Bridges John West Tel: +44 (0) 20 7600 2288 UBS Warburg Warren Finegold Charles Butterworth Tel: +44 (0) 20 7567 8000 Notes to editors: Arcor AG & Co. is the second largest fixed-line telecommunications provider in Germany. With its own Germany-wide voice and data network covering more than 40,000 km, Arcor utilises the latest technologies to offer its clients a full range of services for voice and data transfer, including complete ISDN/DSL connection services. The main shareholders in Arcor are Vodafone Group Plc, Deutsche Bahn AG and Deutsche Bank AG. For more information: http://www.arcor.de This information is provided by RNS The company news service from the London Stock Exchange
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