Completion of sale of UK Network Infrastructure

19 January 2016

KCOM Group (KCOM.L. the 'Group')

Confirmation of sale of UK network infrastructure to CityFibre for

a total cash consideration of £90 million

Following approval of the transaction by CityFibre's shareholders last week, KCOM Group today confirms completion of the sale of its national network infrastructure (outside of Hull and East Yorkshire) to CityFibre for an all cash consideration of £90.0 million.

Proceeds will be used by KCOM Group to reduce net debt, which would have resulted in a pro-forma net debt of £13.0 million as at 30 September 2015

ENDS

For further information please contact:

Bill Halbert, Chief Executive Officer / Paul Simpson, Chief Financial Officer

KCOM Group PLC

01482 602595

Cathy Phillips, Investor Relations

KCOM Group PLC

07778 335735

Matt Ridsdale/Lulu Bridges/Mike Bartlett

Tavistock Communications

020 7920 3150