Scrip Dividend Scheme

Cable & Wireless COMMUNICATIONS plc

SCRIP DIVIDEND SCHEME

Subject to shareholder approval at the Annual General Meeting of Cable & Wireless Communications Plc (the "Company") on 21 July 2010, the Company proposes to offer shareholders the opportunity to take new ordinary shares, credited as fully paid, in lieu of cash dividends, by participating in a Scrip Dividend Scheme (the "Scheme").

In relation to the final dividend for the year ended 31 March 2010, the price of a new ordinary share to be issued under the Scheme has been set at 57.05 pence. This is the average of the Company's closing middle market quotations of an ordinary share for the five consecutive dealing days commencing on the ex-dividend date of 9 June 2010.

Those shareholders who hold their shares in certificated form and have previously elected to join the Cable and Wireless plc scrip dividend scheme will automatically have their dividend sent to them in this form unless they cancel their mandate. For shareholders who hold their shares through CREST, a new CREST Dividend Election Input Message will be required. Shareholders wishing to join the Scheme should submit a CREST Dividend Election Input Message or return a completed mandate form to the Registrar, Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA by 19 July 2010. Following despatch to shareholders, copies of the mandate form and the scrip dividend brochure may be obtained from Equiniti Ltd (UK callers: 0871 384 2104*, overseas callers: +44 121 415 7047) or from the Company's website www.cwc.com.

* Calls to this number are charged at 8p per minute from a BT landline. Other telephone provider costs may vary.

Name of person making notification: Clare Underwood

Contact number: 020 7315 4008

Date of notification:16 June 2010