Pre Close Statement

31 March 2011

KCOM Group PLC (KCOM.L) Pre Close Statement

KCOM Group PLC (KCOM) issues the following statement for the period up to 31 March 2011, prior to entering the close period for its preliminary results.

Current trading

Current trading remains in line with expectations and we have seen incremental growth in the multi-year contracted order backlog within Kcom during the second half of the financial year.

Group cash generation has remained consistently strong, as a consequence of the cash generative nature of our operations combined with excellent working capital performance and timing benefits associated with certain capital expenditure projects and will result in a group net debt position of below £85 million, significantly better than market expectations.

KCOM Group announces its preliminary results on 26 May 2011.

ENDS

Forward-looking statements

Certain statements in this interim statement are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to be correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.

We undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.

Principal risk & uncertainties

The risks and uncertainties faced by the Group as disclosed on pages 22 and 23 of the Annual Report and Accounts to 31 March 2010 are still valid.

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