Vodafone Group Public Limited Company (LSE:VOD) (?Vodafone?) noted recent media speculation and confirms it is in exclusive discussions with Swisscom AG (SWX:SCMN) (?Swisscom?) regarding a potential sale of Vodafone Italy (Vodafone Italia S.p.A.) to Swisscom for cash. Subject to confirming binding transaction documentation, the parties have agreed that Swisscom will acquire Vodafone Italy for an enterprise value of ?8 billion on a debt and cash free basis and subject to customary closing adjustments. Vodafone has engaged extensively with several parties to explore market consolidation in Italy and believes this potential transaction delivers the best combination of value creation, upfront cash proceeds and transaction certainty for Vodafone shareholders.

There can be no certainty that any transaction will ultimately be agreed. If required, a further announcement will be made when appropriate.