Apple Chooses O2 as Exclusive Carrier for iPhone in UK

LONDON - September 18th, 2007

Apple and O2 announced today that O2, the leading wireless carrier in the UK, will be the exclusive UK carrier for Apple’s revolutionary iPhone when it makes its debut in the UK on November 9th. iPhone combines three devices into one — a mobile phone, a widescreen iPod and the best mobile Internet device ever — all based on Apple’s revolutionary multi-touch interface and pioneering software that allows users to control iPhone with just a tap, flick or pinch of their fingers. Apple sold its one millionth iPhone just 74 days after it went on sale in the US on June 29th.

“We’re thrilled to be partnering with O2 to offer our revolutionary iPhone to UK customers”, said Steve Jobs, Apple’s CEO. “US iPhone customer satisfaction is off the charts, and we can’t wait to let UK customers get their hands on it and learn what they think of it”.

“Our strategy at O2 is to bring our customers the best products and experiences”, said Matthew Key, CEO, O2 UK. “The iPhone is a breakthrough that is changing the way people use their mobiles forever, and we’re thrilled to have it exclusively for O2 customers in the UK”.

iPhone users in the UK will be able to activate their new iPhones using Apple’s popular iTunes software running on a PC or Mac computer in the comfort and privacy of their own home or office, without having to wait in a store while their phone is activated. Activating iPhone takes only minutes as iTunes guides the user through simple steps to choose their tariff, undertake a credit check and activate their iPhone. Once iPhone is activated, users can then easily sync all of their phone numbers and other contact information, calendars, email accounts, web browser bookmarks, music, photos, podcasts and TV shows just like they do when they sync their iPods with iTunes.

In addition to all the revolutionary features that made iPhone so popular in the US, iPhone users in the UK will have access to Apple’s latest music offerings on iPhone including the recently launched iTunes Wi-Fi Music Store. The iTunes Wi-Fi Music Store offers customers the ability to browse, search, preview, purchase and download songs and albums from iTunes over the built-in Wi-Fi on their iPhone. No computer is required and when the customer connects their iPhone back with their PC or Mac, their music automatically syncs back into their iTunes library.

Pricing & Availability:
iPhone is scheduled to go on sale on November 9th and will be sold exclusively in the UK through Apple’s retail and online stores, O2 and The Carphone Warehouse’s retail and online stores. iPhone will be available in an 8GB model for £269 (inc VAT) and will work with either a PC or Mac. Three new great value iPhone tariffs will be available from O2 starting at £35, which all include unlimited anytime, anywhere mobile data usage and, in a market first, free unlimited use of the UK’s largest single public Wi-Fi network, covering over 7,500 cafes, restaurants, airport lounges, pubs and other locations across the UK.

iPhone activation will require an Internet connection; an iTunes Store account or a major credit card; the latest version of iTunes available at www.apple.com/uk/itunes/download and a PC or Mac with a USB 2.0 port and one of the following operating systems: Mac OS X v10.4.10 or later; Windows XP Home or Professional with Service Pack 2 or later; or Windows Vista Home Premium, Business, Enterprise or Ultimate Edition. iPhone requires a new 18-month contract with O2. Existing O2 customers will have the option of keeping their existing phone number and upgrading their account to work with iPhone while new customers can also simply and easily transfer their current mobile number to O2.

O2 is a leading provider of mobile services to consumers and businesses in the UK. These services include voice, text, media messaging, games, music and video, as well as always on data connections via GPRS, EDGE, 3G and WLAN. Every month, O2’s 17.8 million customers send well over a billion text messages. O2 UK is part of Telefónica O2 Europe which comprises mobile network operators in the UK, Ireland and Slovakia along with integrated fixed / mobile businesses in Germany and the Czech Republic. Telefónica O2 Europe also owns 50 percent of the Tesco Mobile and Tchibo Mobilfunk joint venture businesses in the UK and Germany respectively as well as having 100 percent ownership of Be, a leading UK fixed broadband provider.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone.