iFone Atari(R) Channel Available On i-mode(R)

O2 has today announced it has partnered with iFone to provide the Atari arcade channel using the i-mode service to consumers in the UK. The partnership will see the iFone Atari channel available from 03/10/2005, which will feature original Atari arcade games including screen savers, wallpapers and competitions and will help iFone build a close relationship with increasingly mobile consumers. The site will offer mobile consumers exclusive access to Atari classic games on its i-mode site from just £3. As an official partner, the iFone Atari Channel will be available through i-mode's intuitive interface under the games section.

The partnership forms part of i-mode's unique content structure through which iFone will be able to quickly develop and deploy sophisticated, secure commercial content to consumers. It allows iFone to expand its revenue opportunities by selling its content through O2's generous revenue sharing model. iFone will collect its revenue from subscription based services billed directly through the user's phone bill permitting it to concentrate on its core business. i-mode is a flexible business model that facilitates both subscription based and non-subscription based content.

The iFone Atari channel brings together all the classic gaming fun of the original Atari arcade games including the opportunity to download screen savers, wallpapers and enter related competitions. The channel will offer arcade classics such as Asteroids^®, Breakout^® and Pong^® and a great many other retro gaming favourites.

Grahame Riddell, Head of i-mode Marketing for O2 UK said: "We are pleased to be working with iFone to offer its Atari Channel to our providers. iFone has managed to capture the benefits of i-mode and joined the i-mode ecosystem to offer its users a compelling mobile experience. O2 wants to make developing mobile content as attractive and as easy for businesses as possible. The building of a strong content community both on and off portal will be critical to the success of the services. Our research clearly shows that consumers are willing to look at and pay for mobile content, and expectations are tied closely to a user's experience of the Internet. Use will be driven by periods of downtime, communication applications, like e-mail, and situational driven use, when information is needed instantly. The overriding point for consumers is that convenience is key."

Morgan O'Rahilly, CEO for iFone adds: "As a leading publisher of mobile games, it is a natural extension for iFone to ensure that we provide operators with all the tools they need to successfully drive iFone's portfolio of games to the consumer, this partnership with O2 i-mode will allow us to do just that."

About i-mode

The i-mode service, exclusively from O2, marks a departure from the closed 'walled-garden' approach to content provision to an open environment, encouraging community building and innovative content services. It is easier for content partners to develop commercially viable customer-focused services with a low incremental cost model - i-mode sites can be built for less than £10K, reducing the immediate pressure for subscription revenues, and encouraging a diverse range of original services and content.

i-mode builds on O2's market-leading position in the provision of mobile messaging and content services. With one in three text messages in the UK sent across the O2 network and Europe's most successful online mobile operation, nearly 22 per cent of the group's service revenues now derive from data. The addition of the i-mode capability to O2's service portfolio in the medium term will complement the highly successful O2 Active WAP portal which now has well over 3 million customers and represents more than 50 per cent of UK mobile internet traffic.

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Notes to Editors

About O2

O2 is a leading provider of mobile services to consumers and businesses in the UK. It is the leader in non-voice services, including text, media messaging, games, music and video, as well as always on data connections via GPRS, 3G and WLAN. Each month O2's 14.6 million plus customers send more than three quarters of a billion text messages. O2 (UK) Ltd is a subsidiary of O2 plc, which also owns O2 branded mobile operators in Ireland and Germany as well as the O2 Airwave emergency services network in the UK.

About iFone

iFone is a global leader in wireless entertainment, specialising in the development, production and publishing of wireless entertainment content for current and future mobile devises.

iFone operates a global distribution network live in 50 countries and has strategic partnerships with over 100 network operators. With an exceptional track record in the deployment of mass-market brands in the wireless space, iFone develops entertainment content for a wide range of handsets in all major languages.

Complemented by a world-class account management, publishing and brand acquisition team, iFone combines a huge wealth of experience and technical knowledge from across the industry.

About i-mode

'i-mode' and the 'i-mode' logo are trade marks or registered trade marks of NTT DoCoMo Inc. in Japan and other countries.

For further information please contact:

Patrick Smith

Sonus PR for iFone

+ 44 (0)20 7851 4890

ifone@sonuspr.com