Change in US GAAP Accounting

Vodafone Group Plc
01 October 2004


1 October 2004

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

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

The new SEC guidance will not affect the presentation of Vodafone Group Plc's
('Vodafone') results or the carrying values of any assets under UK GAAP (or, in
the future, under IFRS).

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 will now require
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.

Therefore, the adoption of this new guidance is likely to result in a reduction
in the carrying value of Vodafone's equity accounted investment in Verizon
Wireless under US GAAP. Vodafone is currently assessing the impact of this
change in interpretation.

Any resulting reduction in the carrying value of Vodafone's investment in
Verizon Wireless under US GAAP would not be as a result of a change in
Vodafone's view of the financial prospects of Verizon Wireless.

                                    - ends -

For further information:

Vodafone Group

Investor Relations
Melissa Stimpson
Darren Jones
Tel: [phone]

Media Relations
Bobby Leach
Ben Padovan
Tel: [phone]

Tavistock Communications
Lulu Bridges
Justin Griffiths
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.

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. For Vodafone's US GAAP
reporting the new guidance is effective immediately for business combinations
and will be effective no later than 1 April 2005 for impairment testing of
assets previously tested using the residual method. Vodafone currently
anticipates any impact will be accounted for within its US GAAP results for the
year ending 31 March 2005.

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. Any reduction in value would be recorded, net of tax, as a
cumulative effect of change in accounting principle and not as a restatement of
prior periods.



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