Yes, you can get out. I read about this half an hour ago, and am now being disconnected on monday (could have been yesterday). 5 minute phone call. If the cs rep you get won't do it, hang up and call again. Luckily for me i got a very helpful guy first time. Orange are surrendering very easily on this one. Oh, and yes you can keep your phone. don't let them tell you different as your phone does not form part of your contract.
PS: did you get the text from them about this? It helps if you have, but isn't essential.