LONDON -- COLT Telecom Group S.A. (COLT), a leading European provider of business communications services and solutions, announced today that Rakesh Bhasin will be appointed President and Chief Executive, succeeding Jean-Yves Charlier. Mr. Bhasin will also be joining the COLT Board and Mr.Charlier will be stepping down from the Board. All of these changes will take effect following the next regularly scheduled meeting of the Board on 13 December 2006.

Having successfully completed his assignment at COLT, Mr. Charlier, the current President and Chief Executive, will be returning to Fidelity. Under Mr. Charlier’s leadership, COLT has accelerated its transition to a data and managed services company and strengthened its position as a business.COLT’s financial performance has improved, moving to positive free cash flow and profitability for the first time. During Mr. Charlier’s tenure, the company also improved its balance sheet by successfully raising £300m new equity earlier in the year whilst reorganising to a Luxembourg holding structure and deregistering from NASDAQ.

Mr. Bhasin is being seconded to COLT from Fidelity, where he is presently a Group Managing Director. Since February of 2001, he has served as President and Chief Executive of KVH Co., Ltd, a Fidelity Asia-focused telecom and network solutions provider headquartered in Tokyo. Mr. Bhasin successfully oversaw the rapid growth and transformation of KVH to a managed services business. Prior to joining KVH in 2001, he served in various senior positions within AT&T, including head of AT&T Asia Pacific's managed network services business from 1993-97, President, AT&T Japan, Ltd., and also Senior Managing Director, Japan Telecom Company Limited. Mr. Bhasin will be stepping down as President and Chief Executive of KVH. From his new position in London, he will remain as non-executive Chairman of KVH.

Commenting on the appointments, Barry R.J. Bateman, Chairman of COLT, said, “COLT has made significant progress under Jean-Yves’ leadership, as reflected in the recently released Q3 results. We are adding the strength of Rakesh’s KVH experience, particularly in managed services, to COLT as the business moves to the next stage in its evolution, changing from a voice provider to a value-added and managed services company. We expect COLT to complete 2006 showing further improved financial performance in line with market expectations."

Colt Technology Services Group Ltd