Cable & Wireless Communications High Court Victory

Press release

Cable & Wireless Communications Plc wins High Court victory against Digicel

Cable & Wireless Communications today announces it has successfully defended itself in the UK High Court against claims it unlawfully delayed the entry of a new competitor in the Caribbean telecoms market.

Mr Justice Morgan handed down a judgement in the High Court dismissing all the claims brought by Digicel, a competitor to Cable & Wireless Communications in the Caribbean, except for in the Turks & Caicos where he found a minor breach of contract but ruled it caused no delay to Digicel and thus no loss.

Cable & Wireless Communications will now seek the reimbursement of its costs of defending the matter.

Tony Rice, Cable & Wireless Communications CEO commented:

"This is a resounding victory for Cable & Wireless Communications. This case has been a pointless waste of time and money. It was brought by Digicel on the eve of our AGM in July 2007 amid a fanfare of publicity and a statement that its claim was for several hundreds of millions of pounds. We maintained throughout that Digicel's case was baseless, and the UK High Court has now vindicated this. I am delighted that we have won and are now free from this unnecessary distraction."

Background to the case:

The case involved claims that the Cable & Wireless Communications Group had breached the telecoms statutes in six Caribbean territories (Barbados, Cayman, St Lucia, St Vincent & the Grenadines, Grenada and the Turks & Caicos islands) which Digicel was entering as a competitor to Cable & Wireless Communications between 2002-06. Similar allegations were also made against TSTT, the Trinidad & Tobago-based telecom operator, in which Cable & Wireless Communications holds a minority stake.

Digicel also alleged senior management of Cable & Wireless plc, the then parent company of Cable & Wireless Communications Group, had been involved in a 'conspiracy' to delay its entry into these markets.

The judgement dismissed all of the claims in the seven territories and the overarching conspiracy claim with the minor exception that the Judge found a breach of a short letter agreement with Digicel in the Turks & Caicos Islands, but which he ruled caused Digicel no delay and thus no loss.

The case was heard over 77 sitting days in the High Court in London, UK, and heard evidence from 43 witnesses.

For further information:

Cable & Wireless Communications

Media

Lachlan Johnston: +44(0) 20 7315 4006 / +44 (0) 7800 021 405

Sonal Solanki: +44(0) 20 7315 4121

Investors

Sheldon Bruha: +44(0) 20 7315 4178

Kunal Patel: +44(0) 20 7315 4083

About Cable & Wireless Communications

Cable & Wireless Communications is a full-service telecommunications business. We operate leading telecommunications businesses through four regional units - the Caribbean, Panama, Macau and Monaco & Islands. Our services include mobile, broadband and domestic and international fixed line services in most of our markets as well as pay-TV, data centre and hosting, carrier and managed service solutions. Our operations are focused on providing our customers - consumers, businesses, governments - with world-class service. We are the market leader in most products we offer and territories we serve. For more information visit cwc.com