mm02 Announces Preliminary Results for the Year Ended March 31, 2002

Business Wire, May 29, 2002

Business Editors

LONDON--(BUSINESS WIRE)--May 29, 2002

"mmO2 has delivered results in line with our expectations at the time of the demerger, despite a challenging industry environment. We were particularly encouraged by the progress made in Germany and the Netherlands. Tighter control of capital expenditure and working capital across the Group kept net debt below our original expectations," said David Varney, Chairman, mmO2 plc.

FULL YEAR RESULTS:

- our periodic reports to the US Securities and Exchange Commission, also known
as the SEC, on Forms 20-F and 6-K;

- our annual report and accounts and half-yearly reports;

- our press releases and other written materials; and

- oral statements made by our officers, directors or employees to third
parties.

FOURTH QUARTER OPERATIONAL HIGHLIGHTS:

- our periodic reports to the US Securities and Exchange Commission, also known
as the SEC, on Forms 20-F and 6-K;

- our annual report and accounts and half-yearly reports;

- our press releases and other written materials; and

- oral statements made by our officers, directors or employees to third
parties.

Mr. Varney further stated: "We continued to focus on the strategic goals we set out at the time of our demerger: to deliver improved operational performance, to achieve more cohesive management of all our businesses, and to build our lead in the market for mobile data services. Our financial performance since demerger reflects the initial progress we have made in each of these areas.

"Our market environment remains challenging, with subscriber growth slowing and the market for mobile data services still in its early stage of development. We believe mmO2 has the right strategy and is well positioned for the next phase of industry growth, driven by customer demand for new mobile data services. We will continue to grow revenues and see further substantial improvement in our EBITDA margin. We remain totally committed to deliver on the goals we set out at the time of the demerger, and create value for our shareholders."

Note(i) 2001 comparative stated on statutory basis. All other comparatives on a pro-forma basis.

The results of the six months and full year ended 31 March 2001 have been shown on a pro-forma basis to include the six months and twelve months respectively of all operating entities of mmO2 as though they were subsidiaries for the whole of those periods.

Table 1 : Second-half and full-year P&L - by operating business

                          Six months              Full year
                        ending 31 March        ending 31 March
                       2002        2001       2002        2001
                                pro-forma               pro-forma

                      (pound)    (pound)     (pound)      (pound)
                      million    million     million      million
----------------------------------------------------------------------
Turnover
O2 UK                  1,388       1,372      2,756        2,706
O2 Germany               455         384        875          677
O2 Netherlands           111          62        200          114
O2 Ireland               202         165        395          309
O2 Online                 61          14        100           15
Other & elims.           (40)          2        (50)          15

Group total            2,177       1,999      4,276        3,836

EBITDA before
 exceptional items
O2 UK                    343         262        670          555
O2 Germany               (52)       (128)      (166)        (343)
O2 Netherlands             3         (56)       (51)        (104)
O2 Ireland                63          36        122           68
O2 Online                (13)        (94)       (68)        (143)
Other & elims.           (46)        (32)       (74)         (72)

Group total              298         (12)       433          (39)

Operating profit/(loss)
 before goodwill and
 exceptional items
O2 UK                    115         121        298          300
O2 Germany              (178)       (271)      (399)        (566)
O2 Netherlands           (32)        (75)      (119)        (140)
O2 Ireland                30          11         59           21
O2 Online                (28)        (99)       (93)        (148)
Other & elims.           (55)        (45)       (83)         (80)

Group total             (148)       (358)      (337)        (613)

Exceptional items          -           -       (150)           -
Goodwill amortisation      -           -       (369)           -
Group operating loss                           (856)
Share of associates
 profit                    -           -          8            -
Net interest               -           -        (25)           -
Loss on ordinary
 activities                                    (873)
before taxation

Table 2: Second-half and full-year capital expenditure

                           Six months             Full year
                        ending 31 March        ending 31 March
                       2002        2001       2002        2001
                                pro-forma               pro-forma

                      (pound)     (pound)    (pound)      (pound)
                      million     million    million      million
----------------------------------------------------------------------
Capital expenditure
O2 UK                    299         496        556          721
O2 Germany                89         306        250          490
O2 Netherlands            29          53         97          126
O2 Ireland                41          60         85          127
O2 Online                 18          29         59           48
Other                     43          49         95           69

Group total              519         993      1,142        1,581

Year-end net debt          -           -       (617)           -