Vodafone Update on Adoption of International Financial Reporting Standards

Vodafone will report under UK Generally Accepted Accounting Practice ("UK
GAAP") for the year ending 31 March 2005, and will subsequently present this
financial information in accordance with IFRS.


The primary changes to Vodafone's reported financial information from the
adoption of IFRS are as a result of the:
-- requirement not to amortise goodwill;
-- proportionate consolidation for certain Group interests, most notably
Vodafone Italy, resulting from their reclassification as joint
ventures;
-- requirement to amortise mobile licences on a straight line basis;
-- recognition of deferred tax liabilities on a different basis;
-- inclusion of a fair value charge in relation to employee share options;
-- recognition of all employee benefit related assets and obligations,
principally pensions; and
-- recognition of certain financial instruments at fair value and the
reclassification of preference shares as debt.

Ken Hydon, Financial Director, commented:

"The financial information provided today shows how IFRS impacts on
Vodafone's recent results in advance of its adoption in the next financial
year. The most significant change is that Vodafone will no longer amortise
goodwill, resulting in a clearer presentation of underlying business
performance.


For the six months ended 30 September 2004 the impact of the adoption of
IFRS is to increase profit attributable to equity shareholders by 6.8 billion
pounds Sterling comprising a credit of 7.3 billion pounds Sterling in relation
to the cessation of goodwill amortisation, a 0.3 billion pounds Sterling
reduction in non-recurring tax income and a net charge of 0.2 billion pounds
Sterling in relation to other adjustments."

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