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ORANGE UNVEILS LATEST SIGNATURE PHONE - SPV E200 AND REVEALS NEW SMARTPHONE USAGE RESEARCH

Geneva, Switzerland, 13 October 2003.

 Orange is first to launch Windows Mobile-based phone with integrated camera and Bluetooth
 New SPV to be showcased at ITU Telecoms Congress in Switzerland
 SPV E200 available to over 30m Orange customers in five countries
 Research shows SPV is most successful Orange phone in terms of non-voice usage

Friday 10 October 2003. Orange and Microsoft today unveiled the latest phone in the Orange signature range – the SPV E200 – featuring familiar Windows Mobile™ software. The phone is designed to give customers one-touch access to key services, exclusive Orange services and making full use of the Orange intelligent network. The announcement comes as Orange and Microsoft release new data on Smartphone usage.

With an integrated digital camera and Bluetooth capabilities, the SPV E200 is one of the worlds most advanced mobile phones, packed with features to make Orange customers more efficient at work and offering more fun and entertainment for play. The SPV E200, with Windows Mobile 2003 software for Smartphones, allows customers to send and receive emails on the move using Pocket Outlook®, access the Internet using Pocket Internet Explorer, send photo messages, download MP3's and even film and store special moments with the integrated still and video camera.

As an Orange signature phone, it also comes with exclusive Orange services such as Orange Backup. Orange Backup allows customers to store their personal and business data – such as contacts and calendar – on the Orange network and restore those details when required. That means that if a customer loses their phone, the information remains secure on the Orange network and can be restored on a new phone. There is also the Orange Update feature which lets customers update their phone with the latest software as well as download and store new applications over the air.

The SPV E200 builds on recent Orange signature phone announcements and follows the success of the SPV and SPV E100 phones, which have proved to be the most successful Orange phones in terms of non-voice revenue.

By 2005, Orange expects 25 per cent of revenues to come from non-voice services - about 10 euros per customer. The SPV already generates an average of 15 euros per customer from non-voice usage alone. Orange customers on average access the Internet five times a day from their SPV and over 80% of customers have synchronised the phone with their desktop computer.

New research conducted by Edge Strategies in Europe* and Asia has shown that Windows Mobile -based Smartphone customers deliver an average revenue per users (ARPU) uplift of +25% (from €53 to €67+). The majority of this uplift is accounted for by an increase in non-voice usage driven through increased Internet browsing, wireless email and downloading applications.

The study also found an increase in voice ARPU. Edge Strategies suggest that this could be related to incoming emails generating outgoing calls and that the seamless synchronisation of Outlook contacts helps users to have all their numbers accessible and easier to call.

Richard Brennan, Executive Vice-President of Global Brand, Marketing and Products,  said: ''By partnering with some of the most innovative, advanced and exciting companies in the industry, Orange is providing its customers with an unrivalled choice of services, style and experience. Our customers are being given a huge choice of design, operating system and functionality because of the power and potential of these partnerships.''

''By marrying some of the most trusted and respected household names and providing or customers the quality of the Orange network, ease of use and exclusive Orange Services, our customers are benefiting from the knowledge that they are getting access to some of the most exciting products, first.

He added: ''We're aiming to continue the success we have achieved with the SPV family so far, which have proved to be the most successful phones for Orange in terms of non-voice usage. We believe this success is due to successful marriage of compelling services with easy, one-touch access to those services.''

Juha Christensen, Corporate Vice-President, Microsoft Mobile Devices Division,  said: ''''This announcement with Orange is evidence not only of the commitment from both companies to deliver innovative phones and services to customers but also to growing the smartphone industry. We are particularly pleased that the latest research highlights a significant increase in ARPU from Windows Mobile -based smartphones and thereby demonstrates the value of our platform to both partners and customers.''

The SPV E200 is due to be available from Orange during November 2003. It will be available from Orange in the UK, France, Switzerland, Denmark, and the Netherlands. Full pricing and further details will be available in each market closer to launch.

* Edge Strategies Inc. (a leading IT and Telecommunications focused consulting firm) surveyed 1020 Windows Mobile-based smartphone users in September 2003 in Europe and Asia. ARPU uplift is computed by comparing bills of current Windows Mobile-based smartphone users with their bills before using this device.
+ Exchange Rate used: 1 euro = $1.16

Notes to editors

Orange

(LSE:OGE) Orange and wirefree are trademarks of Orange PCS. The Orange group is one of the world's largest mobile communications companies, with operations in 19 countries across Europe and beyond. It provides a broad range of personal communications services, including Orange GSM1800 services and other digital cellular telephone services. The Orange brand operates in the UK, France, Switzerland, Romania, Denmark, Slovakia, Thailand, the Ivory Coast, the Dominican Republic, Cameroon, the Netherlands, Botswana, Luxembourg and Madagascar. The Orange group also has controlled operations in Belgium (Mobistar). The Orange group has a joint controlling interest in Egypt (MobiNil) and minority interests in Portugal (Optimus), Austria (Connect Austria), and Mumbai/India (BPL Mobile). As at 1 September 2003, Orange was the largest mobile operator in both the UK with over 13 million active customers, and France with over 19 million registered customers. As at 1 September 2003, Orange controlled companies had over 45 million customers worldwide. Further information about Orange can be found on the Orange website at www.orange.com.

Microsoft
Founded in 1975, Microsoft (Nasdaq ''MSFT'') is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software - any time, any place and on any device.

Microsoft, Windows Mobile, and Outlook are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Orange Contacts:
developers@orange.com

Microsoft

Microsoft Mobile Devices PR team at Weber Shandwick
+44 (0) 207 067 0500
emeamsmobility@webershandwick.com