O2 Ireland

Performance highlights for the third quarter ended 31 December 2007

• O2 Ireland's total revenue was €250* million in the 3 months to 31 December 2007, an increase of 1.4% compared to the same period last year.
• O2 Ireland blended ARPU €45.7 (Q4 2006: €45.0; Q3 2007: €47.0)
• Customer numbers reached 1.646 million customers, 1% higher than at the same time last year.

* Comparative period for FY'07 is 11 months to 31 December 2006. Fourth quarter comparative period is 3 months to 31 December '06.

O2 Ireland fourth quarter operating review
Download full set of financial data

Business highlights

iPhone to launch in Ireland
O2 Ireland confirmed on 28 February that it will be the exclusive Irish carrier for Apple's revolutionary iPhone when it makes its official debut in Ireland on March 14th. iPhone will be sold in Ireland through O2 retail stores. The device will also be available through Carphone Warehouse retail stores. iPhone will be available in an 8GB model for €399 (inc VAT) and a 16GB model for €499 (inc VAT) and will work with either a PC or Mac. Three new iPhone tariffs will be available from O2, starting at €45, all of which will include anytime minutes, texts and a 1GB data bundle.

Raising brand awareness
O2 brand recognition continues apace, bolstered by a groundbreaking advertising campaigns.

Brand awareness is further supported by high-level sponsorships and associations. These included O2 in the Park, official sponsor of the Ryder Cup 2006 in the K-Club, Co. Kildare. and our association with golf and rugby sporting stars. In the business arena, O2 also sponsors the O2 Ability Awards, the first awards programme to acknowledge and profile Irish businesses that are demonstrating best practice in the employment of people with disabilities.

Another important development has been the opening of the O2 Experience Stores. With its exciting styling, friendly service and "try before you buy" offer, this new retail concept has proved highly effective in bringing us closer to customers.

Exciting new products and services that make life easier
Business customers can save time and money with the Fujitsu-Siemens Work Everywhere Package, O2 Instant and the O2 Connection Manager - all of which have been well received in the business and corporate markets. Consumer customers benefited from the introduction of reduced tariffs in 2004, and an appealing range of handsets and devices including the new BlackBerryTM.

Maintaining network quality
Our success is underpinned by our networks, which are rated among the best in the world. We continue to build our network in a cost-efficient and environmentally friendly way and, where possible, to share existing sites with other mobile operators and utilities providers.

Mobile Data
O2 has consistently aimed to grow the market for non-voice services, i.e. text messages, picture messages, GPRS (General Packet Radio Services) Wireless LAN, O2 Instant, Mobile Marketing, Sales and Field services, Fleet Management and Remote Control Services.

The increased usage of text messaging is driven by a young population keen to benefit from the low cost of text messages.

Ireland launches Broadband
On 9 July 2007, O2 Ireland launched its O2 Broadband service, offering wireless broadband at speeds of up to 3.6Mbps, utilising HSDPA (High Speed Downlink Packet Access) technology, which currently covers 75% of the population.

The service continues to exceed expectations, offering a real alternative to fixed broadband in the home in a market that is under penetrated and has good growth potential.

O2 Ireland joint venture with Tesco
At the end of October 2007, Tesco Mobile launched in Ireland, using O2's network via a 089 prefix. Customers pay 20 cents a minute for calls to any network at any time, with all text messages costing 9 cents. Special bundles, In Touch 10 (10 days) and In Touch 30 (30 days), provide unlimited calls, texts and picture messages for €4.99 and €11.99 respectively to other Tesco Mobile customers.

Napster Mobile
In December 2006, O2 Ireland became the first mobile operator in Europe to offer Napster Mobile. The service allows customers to search, browse, preview and purchase content from Napster's music catalogue of over two million songs. The service also features a "recommendation engine" which makes suggestions based on each customer's personal taste in music.

Looking ahead
O2 Ireland will concentrate on maintaining its edge in a highly competitive and increasingly regulated environment. We will continue to put our customers first and to build on the growing demand for data services.

In February,  we launched O2 experience which is the only prepay price plan in Ireland that offers customers the ability to send unlimited free texts to any other Irish mobile network, at any time, for life. In 2008, we expect O2 experience to significantly shake up the prepay marketplace and we'll continue to market this campaign throughout the year.

For further information regarding O2 Ireland and our products and services, please visit: 

http://www.o2.ie/