Interim Management Statement

31 January 2012

KCOM Group Interim Management Statement

KCOM Group today issues its interim management statement.

Current trading

The Group's performance remains consistent with trading reported at the interim results, as announced in November 2011. Strong cash generation has been maintained, leading to a further reduction in net debt.

Ongoing initiatives to drive growth, including the roll out of fibre-based 100mbps broadband within our East Yorkshire network area, continue to make progress. The focus for the Kcom brand continues to be to secure recurring revenue to support our objective of driving long term sustainable growth.

The Board reiterates its commitment to delivering a minimum 10 per cent per annum dividend growth in this and the subsequent financial year, reflecting its confidence in maintaining current performance.

Outlook

The Board expects the Group to trade in line with market expectations for the rest of the current financial year. The Group continues to exploit successfully its enhanced capabilities and strong track record in the provision of communications services to multiple-site, national organisations. An update on recent contract wins will be included in the preliminary results scheduled for 22 May 2012.

ENDS

About KCOM Group PLC

The KCOM Group delivers communications services to a range of businesses and consumers, with an emphasis on exceptional service delivery.

Its Kcom business provides communications services for national multi-site enterprise and public sector organisations across the UK. As an independent provider of these services, supported by its BT Wholesale partnership, Kcom is able to offer advanced network capability and related added value services, coupled with a flexible approach to delivering its customers' requirements.

Its KC business provides a range of communications services to businesses and consumers in Hull and East Yorkshire. Eclipse Internetdelivers a portfolio of internet based communications services. These are designed to help small businesses and home based workers to exploit the power of the internet to achieve business success.

For more information on the KCOM Group, please go to www.kcomplc.com

For further information please contact:

Bill Halbert, Executive Chairman / Paul Simpson, CFOKCOM Group PLC020 7422 8707

Cathy Phillips, Investor RelationsKCOM Group PLC07778 335735

Jon Coles/Daniel TholeBrunswick020 7404 5959