[Yahoo! becomes Vodafone's "exclusive display advertising partner" in the UK. The opt-in program scheduled for roll out early next year allows customers to accept targeted ads offering savings on Vodafone services.]

Sunnyvale and London -- Vodafone and Yahoo! have formed a strategic alliance to pool their expertise to create an innovative mobile advertising business that will enhance the customer experience on mobile phones while providing both companies with a new revenue stream.

Through this alliance, Yahoo! will become Vodafone's exclusive display advertising partner in the UK. Yahoo! will use the latest technology to provide a variety of mobile advertising formats across Vodafone's rich and varied content services. Yahoo!'s sales force and technology team will work with Vodafone to derive benefit from mobile's unique advertising opportunities while delivering the best possible experience for both consumers and advertisers. Vodafone and Yahoo! intend roll out the initiative in the UK in the first half of 2007.

Under the plans, customers who agree to accept carefully targeted display advertisements can expect to enjoy savings on certain Vodafone services. This proposition could extend to key Vodafone mobile assets including the Vodafone live! portal, games, television and picture messaging services.

"Since we announced our intention to develop revenue from mobile advertising as part of our mobile plus strategy unveiled in May, we have carried out extensive customer trials," said Nick Read, chief executive of Vodafone UK. "We will now use the experience to determine with Yahoo! how best to ensure customers, who choose to receive targeted messages, get better value as well as a richer mobile experience. This will also ensure that advertisers are given a compelling proposition."

"This partnership demonstrates Yahoo!'s continued focus on extending our leadership in graphical advertising across multiple platforms," said Marco Boerries, senior vice president, Connected Life, Yahoo!. "We are excited to work with a global leader such as Vodafone to help us define the emerging world of mobile advertising and create superior experiences that deliver the most value to advertisers and mobile users alike."

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