COLT Pays Down Debt

LONDON -- COLT Telecom Group plc (COLT) announced today that it has given notice of the redemption of all of the outstanding U.S. Dollar 12% Senior Discount Notes due 2006. The redemption will be at the principal amount of the Notes plus accrued interest and will be funded out of COLT's cash and liquid resources. The aggregate amount payable will be approximately £122 million. The redemption will take place on 22 December 2003.

COLT's Chief Financial Officer, Marina Wyatt said: "COLT is financially strong with £934 million of cash and liquid resources as at 30 September 2003 and we expect to be free cash flow positive on a sustainable basis during 2005. By redeeming the Notes early we will save approximately £30 million in net interest over the next three years."

Colt Telecom Group plc