Carphone Warehouse and AOL Europe Announce Strategic Alliance For Mviva portal

Business Wire, June 13, 2000

Business Editors/Hi-Tech Writers

LONDON--(BUSINESS WIRE)--June 13, 2000

Carphone Warehouse to launch Mviva internet portal this summer in UK,

France, Sweden, Spain and Holland

AOL Europe to acquire 15% equity stake in Mviva and provide

functionality, content and promotional services for Mviva pan-Europe

AOL PC-based services to be promoted in 900 Carphone Warehouse

and Phone House retail outlets across six European countries

Carphone Warehouse has announced a strategic alliance with AOL Europe ("AOL") under which AOL will acquire 15% of Mviva in return for providing pan-European functionality, content and services as well as payment of $25 million in cash.

The agreement gives AOL the right to acquire a further 4.9% of Mviva within the next 12 months, at a valuation of Mviva of $700 million.

Mviva is an independent mobile internet portal, which is planned to be launched this summer through Carphone Warehouse's shops in the UK, France, Sweden, Spain and Holland and thereafter in other European countries. It will be co-branded: "Mviva - powered by AOL".

AOL Europe will be promoting Mviva to their fixed line internet subscribers in parallel with Mviva's promotion through Carphone Warehouse's shops and on and off-line marketing. In addition, AOL Europe's country services will be featured as the preferred internet service provider in more than 900 High Street and shopping centre retail outlets across six European countries.

AOL Europe software will also be prominently promoted in-store.

Mviva powered by AOL will be installed on internet-enabled mobile phones sold by Carphone Warehouse's European network. By using Mviva, phone users will be able to access services provided by AOL Europe and others at the push of a button. Mviva has the advantage of being able to set up, personalise and demonstrate the service at the point of sale through Carphone Warehouse sales consultants.

Customers can have an e-mail account with AOL Europe country services as well as Mviva, and AOL Europe will provide an instant messaging service to Mviva users.

Mviva will be accessible via mobile and fixed line communications devices, including mobile phones, PCs, personal organisers and interactive TV. It will offer a range of its own and third party content and services and will be available to customers regardless of which access device or mobile phone network they use - something which is critical when mobile phone up-grades are expected as new technologies and functionality are introduced.

Charles Dunstone, Chairman and Chief Executive Officer of Carphone Warehouse said: "Mviva powered by AOL is a great combination. The mobile phone will become an increasingly important means of accessing the internet. Carphone Warehouse has the pan-European distribution network to make Mviva a leading pan-European internet portal. AOL injects all the advantages of its world-leading infrastructure and content, as well as on-line advertising support and the opportunities for cross-promotion. Our shops are the places customers can come for advice on mobile internet, how it works and what Mviva can do for them."

David Ross, Chief Operating Officer of Carphone Warehouse, said: "The combination of the pan-European distribution platform of Carphone Warehouse and AOL's brand, content and infrastructure represents a major new force in the mobile internet arena."

Dennis Patrick, President of AOL Wireless stated: "This alliance with Europe's premier independent mobile phone retailer is another critical step in our AOL Anywhere initiative. More specifically, it is an important element in fulfilling our commitment to extend AOL's leadership into the 'mobile internet'."

Max Alexander, Managing Director of Mviva, said: "The growth of mobile short message services (SMS) is already phenomenal. We see this as one of the stepping stones to mobile internet e-mail and to much wider usage of mobile internet services and m-commerce.

"Mviva is positioning itself at the very beginning of the widely forecast powerful growth of mobile internet. It starts life by combining the strengths of AOL, its content and customer base with the distribution strength of the only pan-European mobile retailer. It has the ability to become a truly European portal with strong local content."

Michael Lynton, AOL International President and CEO added: "With its large network and skilled sales force in the UK and on the Continent, and its reach across all major mobile brands, Carphone Warehouse will not only strongly position AOL's wireless offerings among mobile users but provide a powerful distribution channel to promote our PC-based services."

Within four years, it is estimated there will be around 220 million web-enabled mobile phones in Western Europe, compared to less than one million at the end of 1999. By the end of 2004, almost half of all mobile phone traffic is expected to be data and internet. Sources: Forrester Research Inc and Merrill Lynch

Mviva powered by AOL has to date made arrangements with over 50 third party content and service providers. Mviva will offer information, e-commerce and other services, including: