C&W Comms Sells Bermuda Operation

LONDON -- Cable & Wireless Communications Plc (“CWC”) today announces an agreement to sell Cable &Wireless Bermuda, its operating business in Bermuda, to The Bragg Group for total consideration ofUS$70 million.

CWC also announces today an on-market share buyback programme of up to US$100 million inorder to return capital to our shareholders.

The Bermuda divestment is consistent with CWC’s strategy to reshape its portfolio and develop thebusiness around full-service telecommunications operations in a series of core regional hubs.The consideration of US$70 million will be paid in cash by The Bragg Group and represents amultiple of 6.5x 2009/10 EBITDA. The transaction is subject to government and regulatoryapprovals and is expected to be completed by the end of March.

Cable & Wireless Bermuda, which is part of CWC’s Monaco & Islands unit, is an internationalgateway business providing data capacity, carrier, internet and International Direct Dialling (IDD)calling services. Cable & Wireless Bermuda also provides data centre and disaster recovery servicesto the corporate community, and partially owns a Bermudian alternative local network provider.The Bragg Group is a leading Canadian-based cable and telecommunications provider, operatingunder the Eastlink brand.

CWC also owns stakes in two international cable systems which land in Bermuda that are operatedseparately and not part of the transaction.

Cable & Wireless Communications