Holding(s) in Company

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES

1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached:

KCOM Group PLC

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights

X

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to the notification obligation:

Hermes Equity Ownership Services Limited

4. Full name of shareholder(s) (if different from 3.):

Shares are held by the relevant custodian(s).

5. Date of the transaction and date on which the threshold is crossed or reached:

14 October 2011

6. Date on which issuer notified:

17 October 2011

7. Threshold(s) that is / are crossed or reached:

2%

8. Notified details:

A: Voting rights attached to shares

Class/type of shares

if possible using the ISIN CODE

Situation previous to the triggering transaction

Resulting situation after the triggering transaction

Number of Shares

Number of Voting Rights

Number of shares

Number of voting rights

% of voting rights

Direct

Direct

Indirect

Direct

Indirect

Ordinary 10p Shares

15,651,400

15,651,400

15,407,198

2.98240%

GB0007448250

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financial instrument

Expiration date

Exercise / Conversion Period

Number of voting rights that may be acquired if the instrument is exercised / converted.

% of voting rights

C: Financial Instruments with similar economic effect to Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financial instrument

Exercise price

Expiration date

Exercise / Conversion period

Number of voting rights instrument refers to

% of voting rights

Nominal

Delta

Total (A+B+C)

Number of voting rights

Percentage of voting rights

15,407,198

2.98240%

9. Chain of controlled undertakings through which the voting rights and / or the financial instruments are effectively held, if applicable:

BT Pension Scheme Trustees Limited, as trustee of the BT Pension Scheme ("BTPS") controls Britel Fund Trustees Limited, which is the parent undertaking of Hermes Fund Managers Limited ("HFML"). HFML is the parent undertaking of Hermes Equity Ownership Services Limited ("HEOS") (voting rights: 2.98240%).*

\* This notification is being made in respect of HEOS, which is an indirect holder of shares for the purpose of DTR 5.2.1(h) as a result of control of voting rights in relation to such shares.

Proxy Voting:

10. Name of the proxy holder:

See Comment in Section 9.

11. Number of voting rights proxy holder will cease to hold:

See Comment in Section 9.

12. Date on which proxy holder will cease to hold voting rights:

See Comment in Section 9

13. Additional information:

-

14. Contact name:

Valerie Davidson

([email protected])

15. Contact telephone number:

0207 680 2177