O2 LAUNCHES iPHONE 3G PAY & GO

LONDON – September 5, 2008 – O2 has announced that Pay & Go will be available for the revolutionary Apple iPhone 3G on September 16 with pricing at £349.99 for the 8GB model and £399.99 for the 16GB model. iPhone 3G Pay & Go customers will also receive inclusive unlimited data and Wi-Fi for 12 months following activation, services regularly worth £120.

iPhone 3G combines all the revolutionary features of iPhone plus 3G networking that is twice as fast*, built-in GPS for expanded location-based mobile services, and iPhone 2.0 software which includes support for Microsoft Exchange ActiveSync and runs thousands of third party applications available through the new App Store.

iPhone 3G on Pay & Go will come with unlimited data browsing over O2’s mobile network and unlimited access to over 9,000 Wi-Fi hotspots through both The Cloud and BT Openzone for 12 months following activation**. Following this, an unlimited data and Wi-Fi bolt on will be available to Pay & Go customers for £10 per month.

“Launching iPhone 3G on Pay & Go opens up even more of the market for this innovative device,” said Ronan Dunne, CEO of O2 in the UK. “With inclusive data and Wi-Fi access for the first 12 months, Pay & Go makes it easy for customers to enjoy the best mobile browsing experience ever.”

iPhone 3G will be available to Pay & Go customers in the UK exclusively through Apple, O2 and Carphone Warehouse retail and online stores. iPhone 3G is also available on O2 18 month consumer contracts starting from £30 per month, with the 8GB model priced at £99 on the £30 and £35 tariffs and free on the £45 and £75 per month tariffs. Business customers can also benefit from iPhone 3G which will be available on all O2 business tariffs as a monthly bolt on.

*Based on 3G and EDGE testing. Actual speeds vary by site conditions.
**Subject to O2’s excessive use policy