Scheme of Arrangement Effective

19 March 2010

Announcement

Demerger Update: Scheme Effective

Cable and Wireless plc announces that all the conditions to the scheme of arrangement of Cable and Wireless plc dated 2 February 2010 (the "Scheme") in connection with the proposed separation of Cable & Wireless Communications and Cable & Wireless Worldwide via a demerger (the "Demerger") have been satisfied and the Scheme has now become effective.

In accordance with the terms of the Scheme, Cable and Wireless plc Ordinary Shares have been cancelled and Cable and Wireless plc has become a wholly-owned subsidiary of Cable & Wireless Communications Plc. Cable & Wireless Communications Plc has issued and allotted one Cable & Wireless Communications Plc Ordinary Share and one Cable & Wireless Communications Plc 'B' Share for each Cable and Wireless plc Ordinary Share held by Shareholders on the Cable and Wireless plc register at 4.30pm today.

The listing of Cable and Wireless plc Ordinary Shares on the Official List and trading of Cable and Wireless plc Ordinary Shares on the London Stock Exchange's market for listed securities are expected to be cancelled with effect from 8.00am on Monday 22 March 2010.

Admission of Cable & Wireless Communications Plc Ordinary Shares to the Official list and to trading on the London Stock Exchange's market for listed securities, under the ticker CWC, is expected to commence at 8.00am on Monday 22 March 2010.

CREST accounts will be credited with Cable & Wireless Communications Plc Ordinary Shares at 8.00am on Monday 22 March 2010. Share certificates in respect of Cable & Wireless Communications Plc Ordinary Shares will be despatched by 3 April 2010.

The Demerger is expected to become effective at 6.00 am on 26 March 2010, at which point the 'B' shares will be cancelled and replaced with shares in Cable & Wireless Worldwide plc.

It is expected that trading in Cable & Wireless Worldwide plc Ordinary Shares will commence on 26 March 2010. Until then, Cable & Wireless Communications Plc will be the ultimate holding company of the Cable & Wireless Group comprising both the Communications business and the Worldwide business.

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 Cable and Wireless plc's Circular to Shareholders dated 2 February 2010.

About Cable & Wireless

Cable and Wireless plc 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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