Investor Alert: KGS Announces Initial Filing of Securities Class Action Lawsuit

UNLESS A CLASS IS CERTIFIED, YOU ARE NOT PERSONALLY REPRESENTEDBY COUNSEL UNLESS YOU RETAIN AN ATTORNEY.

If you purchased shares of VM USA in connection with theIPO or if you purchased shares thereafter in the open market,you are urged to contact Lewis Kahn, Managing Partner, KGS,toll free 1-866-467-1400, ext. 100, via cell phone at 504-301-7900,or by email at to learn aboutyour legal rights and how this action may benefit you. Forfurther information on KGS, please visit .

VM USA, certain of its officers and directors, certain controllingmajority shareholders, and the Company's underwriters arecharged with including, or allowing the inclusion of, materiallyfalse and misleading statements in the Registration Statementand Prospectus issued in connection with the IPO, in violationof the Securities Act of 1933.

The Complaint charges that VM USA raised over $412.5 millionthrough the issuance of 27.5 million shares, despite theRegistration Statement's false and misleading statements.Specifically, defendants each failed to conduct an adequatedue diligence investigation into the Company prior to theIPO, and they also each failed to reveal, at the time ofthe IPO, that Virgin Mobile was also not performing accordingto plan and that results for the third quarter of 2007 --the period ended a full 2 weeks prior to the VM USA IPO-- showed growing losses as expenses rose and business slowed,indicating that the Company would be forced to revise downwardits near-term forward financial and operational guidance.

On November 16, 2007, approximately one month after theIPO, investors learned the truth about VM USA's financialand operational condition, after defendants revealed thatthe Company had suffered a widening loss for the third quarter,the period ended September 30, 2007, as a result of risingexpenses -- a loss of $7.3 million, or ($0.15) per share,compared with a loss of only $5.1 million, or ($0.10) pershare, in the same period the prior year. These resultsalso contrasted the $28.9 million in net income, and profitsof $0.55 per share reported in the first six months of 2007,reported prior to the IPO. Further, Defendants also revealedthat fourth-quarter 2007 outlook called for between 350,000and 400,000 net customer additions, an anemic amount analystsdescribed as ``weak,'' and that 4Q:07 guidance would be whatwas described as ``well below'' expectations.

On this news, shares of VM USA fell nearly 30% in intra-daytrading, from an opening trading price of $11.09 per shareto a trading low of $8.07 per share before closing the tradingday at $9.10 per share, on exceedingly high volume of 6.512million shares.

If you wish to serve as lead plaintiff in this class actionlawsuit, you must move the Court no later than January 22,2008. Any member of the purported class may move the Courtto serve as lead plaintiff through counsel of their choice,or may choose to do nothing and remain an absent class member.If you would like to discuss your legal rights, you maye-mail or call KGS Managing Partner Lewis Kahn, withoutobligation or cost to you, toll free 1-866-467-1400, ext.100, or by email at lewis.kahn@kgscounsel.com. To learnmore about KGS, you may visit .KGS focuses its practice on securities class action litigation,and has been appointed lead counsel in numerous federalsecurities class actions.

SPECIAL NOTICE: While federal law does not prohibit otherlawyers from ``announcing'' this class action through theissuance of other press releases, KGS is the law firm thatresearched, investigated, drafted, and filed the securitiesclass action case against VM USA. If you are a VM USA shareholderwho decides to contact one of these lawyers, KGS remindsyou to fully interview any such lawyer to assure that heor she thoroughly understands the facts surrounding thesubstantive claims KGS has filed in Court. It is criticallyimportant that interested parties carefully evaluate anyother firm that may be competing with KGS to prosecute theVM USA class action. Critical components of a law firm'sability to successfully prosecute this action and obtaina strong recovery for you include its knowledge of applicablefederal securities laws, the resources it will dedicateto prosecution of the case (including the number of lawyersthe firm has available for the Virgin Mobile USA class action),AND especially the quality of the firm's work.

More information on this and other class actions can befound on the Class Action Newsline at