MEDIA CONTACTS:
For Skype: Six Degrees PR +44 162 848 0280
For 3: 3 Monkeys +44 207 440 2410

29th October 2007 - Skype, the global Internet communications company and 3, the mobile operator, have launched a new affordable handset that lets you make free Skype to Skype calls and send free Skype instant messages from your mobile phone to other Skype users no matter where they are.

The 3 Skypephone is a fully-featured 3G Internet phone with Skype built-in. In addition to Skype calls the phone makes conventional calls and can be used to access 3's broad range of other internet services.

3 customers using the 3 Skypephone will be able to make Skype calls and send instant messages on the move with the push of a button. This is the first time an operator has offered a mass market device which is tailor-made for free calling over the internet from a mobile. Now, all of Skype's 246 million registered can be reached for free with the 3 Skypephone.

According to Michael van Swaaij, acting CEO at Skype, "Skype is now truly mobile. This new handset is incredibly easy to use and lets you make free mobile Skype calls when you are on the move to other Skype users all over the world no matter where they are. It couldn't be simpler - put Skype in your pocket and make free Skype mobile calls and send free Skype instant messages at the touch of a single Skype button."

Michael van Swaaij added, "Skype began by offering free PC to PC calling and now we're doing the same with mobile calls with 3. Thanks to 3, Skype has now taken a giant step forward in the mobile arena. It takes an innovative operator like 3 to challenge traditional thinking and offer the kind of product other operators are still shying away from."

Kevin Russell, Chief Executive Officer, 3 UK, said, "3 wants to make the mobile internet available to everyone. To do this, we believe that services need to be simple to access and affordable. Communication is the prime function of the mobile today. Skype is the leader in internet communications. To enable Skype to go mobile in this way brings free internet calls together with an affordable 3G handset. Mobile has the potential to massively increase access to internet calling."

The handset was developed by Skype and 3 in partnership with Qualcomm, using Qualcomm's BREW platform to enable Skype to work with core handset features such as address book and messaging.

The 3 Skypephone will be available this year in the UK, Australia, Austria, Denmark, Hong Kong, Italy, Ireland, Macau and Sweden. Skype to Skype calls will always be free from your 3 Skypephone as long as you are on contract or your PAYG 3 credit is topped up monthly. In the UK, the 3 Skypephone is £49.99 on a PAYG tariff or free on a contract. **

The 3 Skypephone is available from 2 November in 3Stores across the UK and from Skype and 3's websites in time for Christmas. The 3 Skypephone is available for pre-order in the UK from today. Anyone who doesn't already use Skype can create a Skype account by going to www.skype.com and downloading the free software onto their computer. Alternatively they can create a Skype account directly from their 3 Skypephone.

** Fair use policy & terms apply. See the 3 website in each country for local prices and conditions
** Free calls are Skype to Skype calls and Skype instant messages from the 3 network (in some countries this is also available when roaming on a 3 sister network).

Notes to editors:

*For case studies, please contact 3 Monkeys Communications on 0207 440 2410

3 Skypephone functionality:

With 3G, a 2-megapixel camera, mp3 player, mobile TV and internet, 3 Skypephone keeps you occupied even when you run out of things to say. Plus, it's small and shiny, and comes in black or white, with blue or pink trim. 3 Skypephone also includes:

• Fully integrated Skype functionality with contacts, call logs and presence.
• Access to Java and 3D games and two preloaded games
• 2.0 Megapixel camera
• Internet browsing
• Bluetooth
• Weight: 86g
• Size: 100 x 44 x 13.6mm
• Battery Standby: 320 Hours
• Battery Talk Time: 270 Minutes
• Battery Video Talk Time: 170 Minutes
• Screen Size: 2.0" QCIF (176 x 220)
• Colour: 262K
• Internal Memory: 16MB
• External Memory: expandable to 1GB microSD

Handset includes:

• Battery 1150mAh
• Battery cover (magnetic)
• Personal stereo hands free kit
• USB cable
• Mains charger
• CD-ROM for PC connection
• 256MB micro SD memory card (no adapter)
• 3 user guide
• Quick start guide for Skype

About 3

3 is a mobile media company delivering a convergence of communications, entertainment and information to customers on the move.

The three areas that form the core of its business are:

• Communications - including all forms of personal communications; voice and video calling; text, picture and video messaging; and mobile blogging
• Entertainment - including television; music audio and video, computer games, and media publishing
• Information services - including wireless web, access to the best of the internet and a range of news services

3 UK is a member of the HWL group of 3G companies, which include 3G operations in Australia, Austria, Denmark, Hong Kong, Ireland, Israel, Italy, Macau and Sweden.

About Skype

Skype sets the standard in providing new and easy ways to stay in touch over the internet. Millions of people every day make free Skype-to-Skype voice and video calls and send instant messages using our software. Some pay a little per minute for long-distance and international calls to phones and mobiles and for SMS, voicemail and call forwarding, or they buy subscriptions that give unlimited calls nationwide.

We certify and sell hundreds of hardware products from more than 50 partners and work with third-party developers to create software to extend Skype's functionality. Skype has been downloaded more than half a billion times and over 246 million people from almost every corner of the globe have registered. Make your world a smaller place: talk, share and do more with Skype.

Skype is an eBay company (NASDAQ: EBAY), and you can learn more and get Skype at www.skype.com.

Skype, SkypeIn, SkypeOut, Skype Me, Skype Certified, Skypecasts, associated logos and the "S" symbol are trademarks of Skype Limited.

About Qualcomm

Qualcomm's BREW solutions change the way people relate to wireless data services. By enabling the discovery and delivery of high-value content, BREW creates opportunities for the wireless industry to enhance consumers' mobile data experience. Qualcomm's comprehensive and targeted BREW Signature Solutions offer reduced time to market and lower capital investment for companies providing mobile products and services. Customers also can benefit from several modular BREW offerings, including uiOne™, deliveryOne and QPoint™, which provide the foundation for customer-differentiated wireless data capabilities.