Orange and HMV sign high street partnership deal

• Long term partnership to help promote Orange music, games and video handsets and services in HMV stores

Orange and HMV today announce an agreement that will see Orange products and services sold in selected HMV stores across the UK.

In a first for Orange, the agreement will see dedicated Orange ‘show and sell’ spaces in the entertainment retailer’s stores, with a focus on music, games and video mobile handsets and services.

The deal will create more jobs on the high street, increasing Orange UK’s retail presence, and will contribute to taking the company past the 400 high street stores landmark, targeted in last year’s agenda. It also underlines HMV’s growing commitment to the mobile and digital space as it continues to diversify its product mix and to develop as a multi-channel brand.

A first wave of up to 15 concession stores will be rolled out from June 2009, with the HMV stores in Glasgow, Plymouth and Teesside earmarked as the first to incorporate an Orange offer. Up to 100 locations have been earmarked to take the store-in-store approach by Christmas.

The partnership follows Orange’s plans to improve, grow and evolve the company, which includes driving the usage of multimedia and entertainment services. Currently, non-voice services account for 24% of Orange UK revenues.*

Tom Alexander, CEO Orange UK, said: “This deal marks the coming together of two of Britain’s biggest and most iconic high street brands.

“Moving beyond mobile and into media and entertainment is a key part of our future, and joining forces with such an iconic and well-loved brand as HMV allows us to mark our clear intention in this area, while expanding our presence on the high street.

“Striking a deal such as this is integral to The Agenda – our strategy to improve, grow and evolve the Orange business.”

Simon Fox, CEO of HMV, said: “HMV has been diversifying and extending its customer offer, which is increasingly becoming a multi-channel one with a growing emphasis on technology and new media.

“I am delighted to welcome Orange into our stores – our brands reflect a shared passion for bringing entertainment content to life, and complement each other well.”

The news comes as independent figures released in April by ELSPA and Chart-Track confirmed that Orange was the UK’s number one mobile operator in terms of mobile game sales.

- ENDS –

*France Telecom December 2008 Results

Enquiries

Orange UK contact details Mat Sears mat.sears@orange-ftgroup.com 07887692428

HMV UK contact details Gennaro Castaldo gennaro.castaldo@hmv.co.uk 020 7432 2033 / 07801 194 139

HMV Group contact details Paul Barker Paul.Barker@hmvgroup.com 001628 818 300

Notes To Editors

About Orange

Orange is a key brand of the France Telecom Group, providing mobile, broadband, fixed, business and entertainment services across Europe. It is one of the world's leading telecommunications operators with more than 182 million customers on five continents.

In June 2006, Orange became the single brand for mobile, broadband and multi-play offers. In addition, Orange Business Services became the new banner for business communications solutions. Orange Business Services is present in 166 countries with network reach in 220.

In the UK, Orange provides high quality GSM coverage to 99% of the UK population. At the end of December 2008, Orange had about 17 million customers in the UK – 15.9 million active mobile customers and over one million fixed broadband customers.

Orange and any other Orange product or service names included in this material are trademarks of Orange Personal Communications Services Limited.

Further information about Orange can be found on the Orange website at www.orange.co.uk or the France Telecom group international website at www.orange.com and www.francetelecom.com

About HMV

HMV is the UK & Ireland’s leading music, film and games specialist – offering the widest selection of titles across all genres and formats through 265 shops nationwide, and online via hmv.com.

HMV has implemented a number of key initiatives as part of an ongoing strategic plan, including a ‘next generation’ store concept, which brings together ‘physical’ and ‘digital’ content in an engaging retail environment; the review of the HMV brand and introduction of the ‘get closer’ identity; investment in HMV’s online and mp3 downloads offer via hmv.com; and the ongoing development of a social network site ‘getcloser.com’.

In 2008 HMV acquired gamerbase.com – a pay-to-play PC gaming concept, and the company recently made a significant entry into ‘live’ music by partnering with MAMA Group through a joint venture to acquire eleven concert venues, including the renamed HMV Hammersmith Odeon. This week HMV announced that it was partnering with independent film distributors Curzon Artificial Eye to bring a new cinema experience to the high street –hmvcurzon will be trialed at its Wimbledon store in London from Autumn 2009.