AGM TRADING UPDATE AND IMS

20 July 2011

KCOM GROUP PLC (KCOM.L) AGM TRADING UPDATE AND INTERIM MANAGEMENT STATEMENT

KCOM Group today announces its trading update for the period 1 April to 20 July, ahead of its Annual General Meeting on 22 July.

Also today, the company is holding a sell-side analyst update primarily on its KC brand activities in Hull and East Yorkshire. This will include information about our plans for deployment of fibre-based, superfast broadband in selected areas of its current market. The investment required for this deployment is included within existing cash flow and capital expenditure guidance.

The Board confirms that trading remains in line with market expectations, with continued strong cash generation.

Since the preliminary results announcement in May, Kcom has been confirmed as the provider of the Dorset Public Sector Network and we have seen incremental growth in the multi-year contracted order backlog, with further contract wins in the period.

A copy of the presentation given at today's analyst event will be published on the Group's website, www.kcomplc.com, at midday today.

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