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ORANGE AND HMV SIGN HIGH STREET PARTNERSHIP DEAL

Tags: HMV, Orange (NYSE:FTE)

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London, UK, 29th April, 2009 – 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.