Virgin Mobile USA Unveils a New Approach to Cellular

June 20 /PRNewswire/ -- Virgin Mobile USA, LLC today announced a brand new approach to cellular - a service focused on, and built around the needs of, the youth market. Offering a single "pay-as-you-go" price plan with no contracts to sign and no fine print to analyze, Virgin Mobile is easy-to-buy, easy-to-use and will come fully-loaded with a host of fun music and entertainment features called VirginXtras.

"Virgin Mobile offers a compelling value proposition for the majority of young Americans under 30. This dynamic market segment needs a service that is flexible enough to grow with them yet does not tie them down with a one or two year contract," said Andrew Cole, senior vice president, wireless practice, at research firm Adventis.

Virgin Mobile's simple pricing is new to the U.S. market -- just 25 cents per minute for the first ten minutes of each day, and then 10 cents for every minute thereafter. This 25/10 price structure includes voice mail, caller ID, call waiting, long distance, surcharges and taxes. Plus, only Virgin Mobile offers the Big Bonus, any customer who uses $50 of airtime in a month will automatically receive $10 of paid airtime absolutely free.

With no peak times and no roaming charges, customers are free to call who they want, when they want. Top-Up (airtime replenishment) is as easy as purchasing a $20, $30 or $50 Top-Up card, and then entering the PIN code directly on their phone. Customers also have the option of using the PIN code to Top-UP through the Virgin Mobile Web site, http://www.virginmobileusa.com/ , or by dialing Central Intelligence (customer care) at 1-888-322-1122 or *VM (*86) on their Virgin Mobile phone. If customers choose to register their credit card, they can automatically add money on a monthly basis.

Virgin Mobile's balance button provides customers with a one-click access directly from their cell phone. Customers can also check their account balance on the Web or through Central Intelligence.

Virgin Mobile is initiating its rollout in the Sacramento, California, and Columbus, Ohio, markets on June 23, 2002, and then building its distribution network across the nation. By August 2002, Virgin Mobile expects its cell phone products and services to be available at more than 11,000 U.S. retail outlets, including Best Buy, Circle K, Circuit City, Follett Higher Education Group, Media Play, Sam Goody, 7-Eleven, Target Stores, Virgin Megastores and Winn-Dixie. Also on June 23, 2002, customers across the country will be able to access Virgin Mobile's Web site and Central Intelligence advisors.

"Virgin Mobile is focused on simplifying cellular to better meet the needs of the untapped youth market segment," commented Cole. "Their service has been tailored to appeal to a group which to date has remained significantly underserved. Given the potential of the Virgin brand and the broad scope of the partnerships the company has already put in place, Virgin Mobile USA is well-positioned to make a significant impact in this market."

"We're proud to be the first U.S. cell phone company to offer a cellular service that is exclusively focused on the youth market," said Daniel H. Schulman, chief executive officer of Virgin Mobile USA. "We think our straightforward pricing, entertainment-oriented features and the power of the Virgin brand will be an exciting combination for the youth segment. We're here to change the game."

"The Virgin Mobile promise is about offering customers great value for their money and spectacular service -- all wrapped in the fun and irreverence of the Virgin brand," said Sir Richard Branson, chairman of the Virgin Group. "And we're ready to deliver. All the elements are now in place to take the U.S. youth market by storm -- from our customized phones, to our phenomenal distribution partners, innovative VirginXtras, dedicated Central Intelligence Team and solid technology backbone."

Customized Cell Phones
Virgin Mobile is the first U.S. cell phone company to offer phones with a personality. Both the Party Animal (Kyocera 2119) and the Super Model (Kyocera 2255) will be available across the country by August 2002. The Party Animal retails for $99 and is appropriately titled for its interchangeable faceplates, numerous games and ringtones to pass the time, as well as storage for up to 200 phone numbers of all those close, personal friends. The Super Model sports a slim design and retails for $129. This cellular beauty features voice-activated dialing and fashionable screen savers, as well as a slew of games, ringtones and enough phone number storage to keep in touch with every photographer and agent in town. Customers will find these cellular lookers nestled inside one of Virgin Mobile's bright red clamshell-style Starter Packs, which includes a charger, starter guide, a $10 Top-Up card and extra faceplates (for the Party Animal on the go).

Phenomenal Distribution Partners
Virgin Mobile built a distribution network based on the places where young Americans shop. The company's Starter Pack will be available in more than 3,000 U.S. retail outlets, including Best Buy, Circuit City, Follett Higher Education Group, Media Play, Target Stores, Sam Goody and Virgin Megastores. Both Sam Goody and Virgin Megastores have agreed to exclusively offer Virgin Mobile's products and services. Customers will also find Virgin Mobile's Top-Up cards at their local Circle K, 7-Eleven or Winn-Dixie, totaling more than 8,000 U.S. locations.

Fun Features (VirginXtras)
Virgin Mobile offers the following exciting features:

• Rescue Ring - That blind date in two hours could be fun-or a major disaster. Virgin Mobile customers can schedule a Rescue Ring to call them up at the perfect "escape time." The Rescue Ring features totally original Virgin Mobile content and outrageous personalities for a completely unique experience. And if the date's going well, they can always tell the "caller" that they'll get back to them tomorrow!



• Wake Up Call - For those who need a little help getting out of bed in the morning, Virgin Mobile USA offers its customers the chance to wake up to totally original Virgin Mobile messages from a variety of cheeky personalities. You can be assured that this will be no run-of-the-mill awakening!



• Ringtones - A huge selection of tunes that will satisfy even the hippest of customers by keeping them singing along.



• Fun Clips - Waiting for the bus with no end in sight? Fun Clips gives Virgin Mobile customers a good way to pass the time. They can use their handset to listen to various audio clips, jokes, gossip and more. Then they can share the fun by texting friends to get them to listen in too.



• Hit List - The Hit Lists lets the world know what music is worth spreading around. Virgin Mobile customers can use their handsets to listen to and vote on a top ten list of hit songs. After voting, customers can hear the percentage of other subscribers who either "loved it" or "hated it."



• Music Messenger - Friends don't let friends listen to bad music. Music Messenger lets Virgin Mobile customers tap into a top ten song list, and then shoot an SMS message to a friend encouraging them to check out a hot new track.



• Movies - Want to catch a flick? Get showtimes and buy tickets in advance right over your Virgin Mobile phone.



• Groups - Whatever our customers are in to, they can find people with similar interests. Customers can check it out from their phone or Virgin Mobile's Web site.

Plus, customers can text message their discerning opinions on, well, anything. (Yes, by August 2002, Virgin Mobile expects that its customers will be able to send/receive text messages to/from their friends on other carriers.)

VirginXtras menus are free to browse and customers only pay for airtime when they use the application. Ringtones are $1 per download, text messages are free to receive and just $.10 to send and 411 is a $.95 flat fee plus regular airtime.

Personalized Central Intelligence (customer care)
Virgin Mobile is the first U.S. carrier to create a voice and personality behind customer care through its Central Intelligence Team. Supported by a fully-integrated partnership with ICT Group, the Central Intelligence Team will deliver around-the-clock service, helping customers purchase and activate their phones, Top-Up their accounts, access account information and learn more about the cell phones' features and functionality. Happy to help all inquiring minds, ICT Group's fun and highly qualified team will answer every question pertaining to Virgin Mobile.

Rock Solid Backbone
Virgin Mobile was built from the ground up by the best technology partners in the business. Brightpoint is assembling the Virgin Mobile Starter Pack, maintaining and managing inventory flow, and overseeing fulfillment for the company's top distribution channels. Telcordia is serving as the real-time "billing engine" by managing the customer balance and transaction information, which makes activating an account or knowing when it's time to Top-Up a seamless and painless experience for Virgin Mobile customers. BEA's WebLogic Enterprise Platform will serve as the central communications hub by connecting all aspects of the Virgin Mobile service -- including its cellular network backbone, customer relationship management (CRM) system, customer balance and purchase data, distribution centers, Web interface and financial systems software. Finally, Virgin Mobile selected Siebel call center technology to support Central Intelligence. An industry-specific rather than custom-built application, Siebel eCommunications will provide Virgin Mobile with both fast deployment and cost-efficiency.

Virgin Mobile's cellular products and services are available 24/7 through the Web at http://www.virginmobileusa.com/ and Virgin Mobile's Central Intelligence number at 1-888-322-1122.

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