Relationship with Vodafone

Vodacom and Vodafone co-operate in a number of areas where Vodacom can leverage Vodafone's expertise, resources and global footprint. The key elements that have been leveraged by Vodacom to date include: roaming products and access to roaming agreements between members of the Vodafone Group including its partner market networks; innovative mobile connectivity products such as "BlackBerry® TM from Vodafone" and "Vodafone Mobile Connect Card"; involvement in global handset procurement arrangements; co-operation in the acquisition and service of international corporate customers, as well as the sharing of best practice in both technical and commercial programmes. The co-operation agreement between Vodafone and Vodacom is regulated in a number of agreements under which Vodacom pays Vodafone fees based on certain revenue share arrangements. For the financial year ended 31 March 2008, Vodacom paid Vodafone total fees of R303.9 million.

The co-operation agreement was amended and extended on 20 March 2008 to, amongst other things, include Vodacom's subsidiaries in Lesotho, Tanzania, Mozambique and DRC. As Vodacom becomes a subsidiary of Vodafone, it will continue to evaluate if there are areas where it would benefit from increasing or extending its co-operation with Vodafone, in order to create value for shareholders.