Virgin Entertainment Group Launches V Shop - the first internet to high street launch in the UK

Richard Branson commented at the Notting Hill opening, "With the launch of V Shop we are proving yet again that Virgin is ahead of the game. As the first ever retail chain to exploit the revolutionary concept of TMT retailing (technology, media, telephony) V Shops across the country will introduce millions of British consumers to a new way of shopping. As with the Virgin Megastore chain, the V Shops will be very friendly and sociable with lots of in-store theatre and of course the chance to touch and feel the products. Customers will be able to pick up the newest Virgin Mobile MP3 phones and actually hear how great the quality is before they buy.

"Stealing the idea from Dr Who, the V Shop is the ultimate 21st Century 'tardis' - introducing a new 'Find and Buy' intranet touch screen kiosk service offering access to a further 110,000 music and movie products, as well as access to the world of virgin.com - and not a nasty Dalek in sight! With an average of 5 kiosks in every store, accessing music, movies and of course virgin.com has never been so easy."

The 100 re-engineered Our Price shops will be the first clicks and mortar stores to offer personal entertainment hardware, software and mobile telephony. This comes at a time when city interest is moving away from straight consumer e-commerce companies and towards TMT (telecommunications, media and technology) companies such as V Shop.

The £20 million investment, funded by Virgin Entertainment Group, is re-vitalising the Our Price retail chain using existing prime site locations, an enormous customer base and expert staff to build an exciting and profitable bridge between the real and virtual shopping worlds.

Chris Ash, V Shop Managing Director, comments, "Whilst providing our traditional customer base with the chart music, video and games they want, V Shop will also help explain the complex world of mobile phones and new technology.

"Furthermore, with the opportunity for customers to access businesses like Virgin Cars, Virgin Wines and Virgin Students, V Shop will become an important place for customers to get to know all about Virgin's different businesses."

Customers will be able to buy Top 50 chart music albums and singles and Top 25 compilation albums. DVD hardware and software, console games and hardware, MP3, mini-disc and CD players will also be available. The store will also carry the entire range of Virgin mobile hardware as well as offer access to the virtual world of Virgin. V Shop will always offer its customers year round value with transparent pricing.

The largest staff training initiative ever embarked on by a retailer costing £750,000 has been undertaken with 1,000 people trained over 4 months with particular focus given to customer service and product knowledge (source: V Shop).

Four of the 100 stores are up and trading today. These are Notting Hill, Kensington High Street, Hammersmith, Ealing Broadway with Chatham opening tomorrow,Tuesday.

Notes to editors:

For further information or photography on V Shop please contact Tom Webb on Tel: 01483 209846 or Gemma Hart on Tel: 01483 209853

Or E-mail: twebb@craigietaylor.co.uk or ghart@craigietaylor.co.uk

Virgin Mobile Information:

Virgin Mobile is now established as the most successful virtual network operator in the world. Since its launch in November 1999 it has attracted well over 400,000 customers making it one of the fastest growing mobile phone companies ever.

Virgin Mobile is a 50:50 joint venture company between Virgin and Deutsche Telekom's One 2 One and is the UK's first mobile virtual operator.

Virgin has already taken the brand overseas with Virgin Mobile (Australia) a partnership with Cable and Wireless Optus; and Virgin Mobile (Asia) a joint venture with Singapore Telecom.

Virgin Mobile aims to become the world's first truly global virtual network operator. Virgin Mobile phones are available direct on 0845 6000 600; on the web at www.virgin.com/mobile; or on the High Street at more than 300 Virgin Megastores, Our Price stores and V Shops.

Photography of sample screen shots and the new range of phones is available on request.

virgin.com Information:

virgin.com is the portal to the world of Virgin on-line. virgin.com is at the forefront of the Virgin group of companies' e-commerce drive. The Virgin group is supporting this drive with £150m of investment over the coming years. At present, virgin.com is the umbrella brand for virgin.com/student, virgin.com/wine, virgin.com/cars, virgin.com/energy - with lots more to come!

ADDENDUM - THE HISTORY OF VIRGIN AND OUR PRICE

1971	'Tape Revolution' opens in London's Finchley Road
1976	The range of stock is widened and the trading name changed to 'Our Price Records'
1984	Our Price Records becomes the first specialist retailer to go public on the Stock Exchange. The share issue is over-subscribed 25 times
1986	Our Price accepts a £43 million offer to become an autonomous subsidiary of WH Smith. WH Smith-owned specialist music chains 'Sound FX' and 'Music Market' are integrated into the new company, which is renamed 'Our Price Music'
1988	The 200th Our Price Music shop opens in Stirling, Scotland. Our Price also acquires 74 Virgin music shops for £23 million, and the 'Farringdons' classical specialist chain in the heart of the City of London
1992	WH Smith Group purchases a 50% stake in Virgin Retail, providing the capital necessary to continue the company's rapid growth
1994	Our Price and Virgin are merged in a new joint venture
1998	August: Virgin Entertainment Group purchases Virgin Our Price from WH Smith and splits Virgin Retail and Our Price, creating two Boards and Management teams