Retirement of Director

KCOM Group PLC

Retirement of Director

Further to the announcement dated 26 November 2013 in respect of Kevin Walsh, KCOM Group PLC (the "Company") confirms that Mr Walsh has retired as a Director of the Company with effect from 29 July 2014. He will continue to offer support to the KC brand, and remain in the business, until 31 October 2014.

Bill Halbert, Chief Executive said, "Kevin joined the business in 2000 and, for the past 10 years, has been responsible for our KC brand. During this period, he has overseen its transition into one of the UK's leading providers of fibre-based services. I'd like to thank him for his insight and contribution at both a Board and business level and wish him well in his retirement from the Group."

The Company hereby confirms that no payments for loss of office are to be made to Mr Walsh. The payments that may be made to Mr Walsh following his retirement are set out below:

Salary and Benefits

Mr Walsh will continue to receive his base salary of £242,050 until 31 October 2014, in accordance with his contract. He will also continue to receive his taxable benefits totalling £17,000 per annum until that date. These benefits consist of private medical insurance, income protection, life assurance, company car, fully-expensed fuel card, medical screening and the opportunity to participate in the all-employee Share Incentive Plan. He will also continue to receive retirement benefits until 31 October 2014, which are equivalent to 20 per cent of his basic salary.

Annual Bonus and Long Term Incentives

Mr Walsh received awards under the Company LTIP scheme in July 2012 and July 2013. The performance period for these schemes ends in July 2015 and July 2016 respectively and, as a good leaver, Mr Walsh will be entitled to receive any shares that vest under the scheme, pro-rated to the date of his retirement to the extent determined by the Remuneration Committee. The actual amount of shares will therefore be calculated in July 2015 and July 2016, in so far as vesting conditions are met at that time and full details will be disclosed in the Company's 2016 and 2017 Directors' Remuneration Reports.

All details of the operation of the LTIP are set out in the Directors' Remuneration Report 2014.

Mr Walsh will not be eligible for a bonus payment in respect of the 2014-2015 financial year.

The Company's Remuneration Report for the financial year ending 31 March 2015 will be published in June 2015.

Enquiries:

Kathy Smith

Company Secretary

01924 882501