Conditions to Demerger satisfied

25 March 2010

Announcement

Conditions to Demerger satisfied

All the conditions to the proposed separation of the Cable & Wireless Communications and Cable & Wireless Worldwide businesses via a demerger (the "Demerger") have now been satisfied and the Demerger is expected to become effective at 6.00 a.m. tomorrow morning, 26 March 2010.

From such time, Cable & Wireless Communications Plc will be the holding company for the Cable & Wireless Communications Group only and Cable & Wireless Worldwide plc will become the holding company of the Cable & Wireless Worldwide Group.

In accordance with the terms of the Demerger, Cable & Wireless Communications 'B' Shares have been cancelled. Cable & Wireless Worldwide plc will issue and allot one Cable & Wireless Worldwide plc Ordinary Share for each Cable & Wireless Communications 'B' Share held by Shareholders on the Cable & Wireless Communications Plc register at 4.30pm today.

Cable & Wireless Worldwide plc Ordinary Shares are expected to be admitted to the Official List and to trading on the London Stock Exchange's market for listed securities with effect from 8.00 am tomorrow morning, 26 March 2010, under the ticker CW.. CREST accounts will be credited with Cable & Wireless Worldwide plc Ordinary Shares at 8.00am tomorrow. Share certificates in respect of Cable & Wireless Worldwide plc Ordinary Shares will be despatched by 6 April 2010.

Shares in Cable & Wireless Communications Plc were admitted to the Official List and to trading on the London Stock Exchange's market for listed securities on 22 March 2010.

All times referred to in this announcement are to London time.

Unless stated otherwise, capitalised terms used in this announcement shall have the same meanings as given in the prospectus issued by Cable & Wireless Communications Plc dated 2 February 2010.

About Cable & Wireless

Cable and Wireless is one of the world's leading international communications companies.

It operates through two standalone business units - Worldwide and Communications.

The Cable & Wireless Worldwide Group specialises in the provision of critical communication infrastructure and services for large users of telecommunications. It provides high quality managed voice, data, applications and internet protocol based services to its customers, focusing on serving large corporates, multinational companies, governments, carrier customers and telecommunications resellers. Cable & Wireless Worldwide Group serves large users of telecommunications in the UK, its largest market, as well as Asia- Pacific, India, the Middle East, Africa, Continental Europe and the United States.

The Cable & Wireless Communications Group, headquartered in London, is managed as four regional operations - the Caribbean, Panama, Macau and Monaco & Islands. It operates full-service telecommunications businesses providing mobile, broadband and domestic and international fixed line services, as well as offering enterprise solutions and managed services.

Important Information

This announcement is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities or investment advice in any jurisdiction.

These materials are not an offer of securities for sale in the United States or to, or for the account or benefit of, US persons. The securities to which these materials relate have not been registered under the US Securities Act of 1933, as amended (the "Securities Act"). The Cable & Wireless Communications and Cable & Wireless Worldwide Ordinary Shares have not been and will not be registered under the Securities Act in reliance upon the exemption from the registration requirements of the Securities Act by Section 3(a)(10) thereof.

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