Strategic Alliance

Vodafone Group PLC
8 November 2000

      Vodafone and Swisscom Mobile form a strategic partnership
         Vodafone to acquire a 25% stake in Swisscom Mobile

Vodafone Group Plc ('Vodafone') and Swisscom AG ('Swisscom') jointly
announce  a  strategic  partnership between  Vodafone  and  Swisscom
Mobile  whereby Vodafone will acquire 25% of the equity of  Swisscom
Mobile for CHF4.5 billion (£1.8 billion).  The strategic partnership
also  incorporates a service agreement between Vodafone and Swisscom
Mobile.    In   addition,  Vodafone's  German   mobile   subsidiary,
Mannesmann D2 Mobilfunk, and Swisscom's German subsidiary,  debitel,
will  enter  into  an enhanced service provider agreement  regarding
UMTS.

*      Swisscom Mobile is the mobile telecommunications business  of
       Swisscom,  which  will be separated from  Swisscom  prior  to
       completion of the transaction

*      The  consideration  for  the 25%  stake  in  Swisscom  Mobile
       represents  an  equity value of CHF18 billion (£7.1  billion)
       and  an  enterprise value of CHF18.5 billion  (£7.3  billion)
       with  net  debt of CHF0.5 billion (£0.2 billion) and  assumes
       that  Swisscom Mobile will have obtained and paid for a  UMTS
       licence

*      The  consideration for the equity will be paid either in cash
       or  Vodafone shares, or a combination of both, at  Vodafone's
       discretion,   in  two  instalments:  CHF2.2   billion   (£0.9
       billion)  will  be  paid at closing and the remaining  CHF2.3
       billion  (£0.9  billion) will be paid  within  12  months  of
       closing

*      Swisscom  Mobile will have access to Vodafone's  leading  and
       innovative products and services, and it will participate  in
       Vodafone's  supply-chain  management  and  its  products  and
       services development initiatives

*      debitel   will  enter  into  an  enhanced  service   provider
       agreement  with  Mannesmann D2 Mobilfunk  providing  it  with
       access   to  Mannesmann  D2's  UMTS  products  and   services
       offering

*      The  acquisition is expected to be completed by  the  end  of
       March  2001  and  is  subject to  the  approval  of  Swisscom
       shareholders as well as regulatory approvals

Switzerland  is a highly attractive mobile market with  an  affluent
population of 7.3 million people and the highest GDP per  capita  in
Europe.   Swisscom Mobile has a 67% market share with over 3 million
subscribers  and is the clear market leader in both the  residential
and corporate segments.

The strategic partnership between the two companies will ensure that
Swisscom  Mobile will benefit fully from the experience and know-how
of  the global leader in mobile services.  The seven member Board of
Directors  of  Swisscom Mobile will comprise of  four  members  from
Swisscom,  two  from  Vodafone  and  an  independent  board  member.
Swisscom  will fully consolidate the results of Swisscom  Mobile  in
its financial accounts.

Swisscom  will use the proceeds to fund future growth including  the
purchase  of a Swiss UMTS license, the roll-out of the UMTS network,
the  enhancement  of  the  fixed  network  for  broadband  services,
expansion  of  e-commerce solutions as well as moving debitel  along
the  value  chain.   The  remaining funds will  be  used  to  reduce
indebtedness and Swisscom is also considering a share buyback.

Markus Rauh, Chairman of Swisscom, commented:

'We  have  evaluated this partnership carefully. It will secure  our
future  growth in the highly competitive Swiss mobile communications
market.   The  foundations  are now in place  for  building  on  our
success in the new era of mobile communications - UMTS.'

Jens Alder, Chief Executive of Swisscom, emphasised:

'We  are the Swiss market leader and this partnership will allow  us
to continue our success story.'

Julian Horn-Smith, Chief Executive of Vodafone Europe, commented:

'This  strategic alliance represents an exciting opportunity for  us
to  expand further our European footprint, partnering with  Swisscom
the  leading  mobile network in Switzerland.  We are able  to  offer
Swisscom the opportunity to participate in the substantial scope and
scale  advantages  offered  by Vodafone's  global  reach,  which  we
anticipate  will  make the partnership earnings accretive  for  both
Vodafone  and Swisscom.  Benefits will accrue to Vodafone  customers
roaming in Switzerland and Swisscom Mobile customers will be able to
benefit  from  the  extensive international operations  of  Vodafone
Group, which span 25 countries.'

Swisscom was advised by J.P. Morgan on this transaction and Vodafone
was advised by UBS Warburg.

                             
Notes to editors:

The  exchange  rate  used  to calculate the  Swiss  franc  to  pound
sterling is CHF2.54/£1


Enquiries:

Vodafone Group Plc
Tim Brown, Investor Relations Director
Melissa Stimpson, Senior Investor Relations Manager
Mike Caldwell, Corporate Communications Director
Tel:  [phone]

Tavistock Communications
Lulu Bridges
Tel:  [phone]

UBS Warburg
Mark Lewisohn
Campbell Stewart
Tel:  [phone]

Swisscom AG
Sepp Huber
Tel:  [phone]

Citigate Dewe Rogerson
Cary Martin
Tel:  [phone]

J.P. Morgan
Martin Kesselring
Dirk Albersmeier
Tel:  [phone]